Letlole post profits in challenging market
Isaac Pinielo | Tuesday September 23, 2014 15:29
The strategy, which was developed in 2012 focuses on maximising existing vacant spaces and restructuring the portfolio.
This week, the Botswana Stock Exchange (BSE) listed company posted a profit after fair value adjustment and before tax of P92.6 million for the full year ended 30 June 2014 compared to P89.9 million in the previous year.
According to the financial results, Letlole La Rona said an independent valuation of the property portfolio has been carried out which resulted in a valuation of P578.5 million as at 30 June 2014.
This is a 16 percent increase from the previous year, which includes additions to investment properties of P33.8 million.
Commenting on the results, company executive director, Marina Bathuleng-Mookodi said the fair value of the company’s investment properties has been arrived at on the basis of the open market value of the properties as at year-end.
During the same period, LLR noted that it delivered an 8,900 square metre factory warehouse extension and that the replacement of the factories damaged by fire in the previous year would be completed by October 2014.
Bathuleng-Mookodi said there would be an increase in contractual revenue from these properties, adding that this it is expected to increase portfolio value by 10 percent and bring the company closer to its targeted P800 million by 2016.
LLR owns properties in the commercial and retail sector accommodating retail shops such as Shoppers.
Majority of LLR properties are located in Gaborone while others are in Francistown and Selebi Phikwe. The company has a total 20 properties, which include the President Hotel, Thapama Hotel, Bosele Hotel, Cresta Lodge and Moedi House.
Currently LLR’s portfolio is 100 percent let and the average lease period is 3-5 years for industrial and retail.
The hotels have seven year leases remaining, while commercial space has two years left on the lease and added that rental rates achieved at market related rentals on renewals.