The Far Property Company (Botswana) HY 2021 revenue up 4% to P69.98 million

By Published On: March 3rd, 2022Categories: Corporate announcement, Earnings

The Far Property Company Limited (FPC.bw) HY2022 Interim Report

The FAR Property Company (“FPC”) is pleased to announce that its group results for the six months ended 31 December 2021 has shown a steady improvement in key performance metrics.

During the period under review FPC continued to effectively manage a portfolio that showed resilience despite the impact of Covid-19 in all geographies that the Group operates. There has been an agility in swiftly adapting to changes in consumer behaviour and new ways of thinking and working.

PERFORMANCE TREND AND COMMENTARY RESULT

  • Very healthy loan to asset ratio of 21%.
  • Rent yield continues to remain at a stable level of 10% despite the negative impact of COVID 19 Pandemic.
  • Very healthy yield for the completed projects.
  • Revenue increased 4% from P67.48 million for the six months to December 2020 to P69.98 million for six months to December 2021.
  • Net income from operation increased by 6 % from P47.58 million for the six months to December 2020 to P50.62 million for six months to
    December 2021.
  • Vacancies across the portfolio remain below 5%, which is encouraging given the tough trading environment

BASIS OF PREPARATION AND ACCOUNTING POLICIES

The abridged financial information is prepared in accordance with the International Financial Reporting Standards (“IFRS”) and in the manner required by the Companies Act 2003 (No. 32 of 2004) of Botswana, except the investment property fair value adjustments are only accounted at the year end.

The financial information is presented in Botswana Pula, which is considered the functional currency.

The company has not provided for any taxation at this stage because the company’s tax liability is managed with the tax management opportunities available from VRLS legislation.

COVID -19

Management is closely monitoring the evolution of COVID-19 pandemic, including how it may affect the Group, the economy and general population.

The Company has taken into consideration the following mitigating factors in its assessment for going concern basis of accounting, among other things.

  • New projects in the pipeline to fund for growth and stability:
  • Future oriented strategies for new Investments:
  • Evolution of new revenue models for Property Management sector as a whole.

PROSPECTS & STRATEGY

  • Four new projects and one acquisition will be completed before end of the current financial year end.
  • A very strong commercial land bank at our disposal for strategic growth.

PROPERTY PORTFOLIO

  • Value of portfolio is P1.37 Billion
  • Land bank available for future growth.
  • Backed by long term leases
  • Vacancy rate negligible

For and on behalf of the board

Vidya Sanooj
Director

Ranjith Priyalal De Silva
Director

23 February 2022


The Far Property Company Limited (FPC.bw)

Share price: 240.00 Thebe (0.00 | 0.00% – 27/06/22)

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