PrimeTime Property Holdings Limited Achieves 99% Annual Occupancy Owed to Strong Tenant Relationships

Published On: February 2, 2024Company: PrimeTime Property Holdings Limited (PRIMET.bw)
What is the future focus for PrimeTime Property Holdings Limited?
PrimeTime plans to restructure debt and initiate an equity raise that will lead to lower borrowing costs, improvement in distributions, and a stronger balance sheet. Additionally, they plan to work on the development pipeline to catalyse future growth. They also plan to improve power solutions, thereby reducing costs and the portfolio’s carbon footprint further.

Summary

  • PrimeTime Property Holdings Limited reported annual occupancy levels of 99% showing strength in tenant relationships and the quality of their properties.
  • Group rental income increased by 8% year-on-year to P182 million, up from P169 million previously.
  • Net Asset Value (NAV) saw an annual increase of 9.0% to 343 thebe per linked unit.
  • The Group’s loan-to-value (LTV) ratio reduced from 53% to 51%, in line with the property retention strategy.
  • A distribution of 11.57 thebe per linked unit was achieved, though down from FY22 due to higher interest rates and debt amortisation.
  • The tenant mix includes major corporations, multinationals, banks, and financial institutions (30%), national and regional retail chains (40%), and government and parastatal sector (9%).
  • Group faced higher interest rates due to the Russia/Ukraine war, resulting in a rise in the cost of debt and group weighted average cost of borrowing.
  • The portfolio in Botswana saw a 3.14% increase in contractual lease revenue to P119 million.
  • Zambian interest cost increased dramatically by 63% during the year under review.
  • Portfolio value in South Africa makes up 5% of the Group’s market value of properties.
  • The Group remains confident in being able to successfully refinance debt with the support from most financial institutions.
  • The total value of PrimeTime’s property portfolio rose by 4% to P1.77 billion.
  • PrimeTime is committed to improving power solutions to offer lower, more stable costs to tenants and reduce the portfolio’s carbon footprint.
  • The Group has low vacancies across the portfolio and has concluded 78 new leases worth P40 million per annum in rental income.

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About PrimeTime Property Holdings Limited (PRIMET.bw)

PrimeTime Property Holdings Limited is a real estate investment company listed on the Botswana Stock Exchange and based in Gaborone. The company primarily invests in the acquisition and development of residential, retail, and commercial real estate both domestically and internationally. PrimeTime Property Holdings is invested in a diversified portfolio of office, retail and industrial properties throughout Botswana and Zambia, and in South Africa.

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.

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