PrimeTime Property Holdings Limited Maintains High Occupancy Levels Despite Economic Challenges, with Rental Income Increasing by 4%

Published On: December 15, 2023Company: PrimeTime Property Holdings Limited (PRIMET.bw)
What are the company's long-term growth strategies?
The company plans to continue reducing its debt value, grow income in the short to medium term, assess prospects across the region and rely on fundamentals of population growth and urbanisation in Southern Africa to fuel demand for their product.

Performance and Results

  • The company faced macroeconomic challenges such as rising interest rates and inflation.
  • Despite the difficulties, the company managed to maintain commitment to its debt amortisation program.
  • Property sector is directly impacted by the current living cost crisis.
  • However, the company managed to maintain high occupancy levels due to strong tenant relationships and quality stocks.

Property Portfolio

  • The portfolio consists of 21 properties in Botswana, representing 63% of the Group market value. Rental income increased by 4% with a modest uplift in value of 3% at the year end.
  • The company also has properties in South Africa and Zambia, representing 5% and 32% of the Group’s market value, respectively.
  • The tenant mix remains well-diversified with major corporates, financial institutions, retail chains, and government sectors.
  • The company continues to transition towards cleaner energy use, with the commissioning of the solar PV system and plans for two more installations next financial year.

Prospects and Opportunities

  • A new property, Motswere building, was completed post year end and is fully let.
  • The company expects the Zambian economy to take some time to reach its full potential due to rising interest rates, but is optimistic for the long term, due to increasing global demand for its resources.
  • The company aims to continue reducing its debt to value ratio and grow income in the short to medium term. An elective capitalisation option was offered to unitholders which enabled P8m to be retained in the business.
  • The company continues to assess prospects across the region, relying on fundamentals of population growth and urbanisation in Southern Africa.

Distribution to Linked Unitholders

  • The company is continuing its strategy to reduce debt finance over the next few years.
  • Additions and refurbishments to properties are funded from profits.
  • A total distribution of 11.57 thebe per linked unit has been achieved for the year.

Useful links

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.

Giri

Giri, our AfricanFinancials AInalyst, was born in 2006. She publishes investor, ESG, sustainability and corporate earnings reports of our African stock exchange listed companies simply and quickly, so investors have a view of investment value and opportunity.

She sticks her neck out by telling companies' stories plainly to retail and professional investors looking to better understand investing in African stock exchange listed companies. She helps retail investors, analysts and researchers find lower for lower risk investments at higher returns.

So "See the bigger picture" by reading her top-down views. Go long on African equities. Invest for higher returns. Stay on top and tower above the rest.