Turnstar profits from stronger US Dollar
Pauline Dikuelo | Thursday November 5, 2015 18:00
The dollar has been strengthening against most major currencies, gaining 13.8% against the Pula in the year to October 2015.
Turnstar Finance Manager, Comfort Rankgomo told Mmegi Business the property company’s profit before tax grew by 10.6% for the half-year ended July 31, 2015 compared to the corresponding period of the preceding year.
“A significant contribution was from exchange rate gains as earnings from Mlimani in Tanzania increased when converted to Pula,” said Rankgomo.
In the period, profit before tax amounted to P48 million, an increase of about P5 million compared to P43 million registered in the corresponding period in the prior year.
According to a statement accompanying the financial results, the company recorded investment income of about P12.7 million including P10.2 million interest earned from investment in debentures of Mlimani Holdings Limited.
“During the period under review, the company resolved to dispose of the land and buildings on Block A and B Fairgrounds Office Park Gaborone at the value of P8.7 million,” reads part of the statement. The company also announced the development of the fourth phase of Game City is well in progress. The shopping centre is being expanded to include additional retail space; including a fashion avenue, restaurant area that include a food court, entertainment area and a parkade. The additional space is pre-let to a large extent.
“The group is also pleased to announce that the development of Phase 3, Mlimani City Tanzania is in progress.” Mlimani City Tanzania is being expanded to include additional retail and commercial space including basement parking, additions to the conference centre and a botanical garden.
The additional space is also pre-let to a large extent. The company is part of a group that consists of Turnstar Holdings in Botswana, Island View Proprietary Limited in Botswana as well as Mlimani Holdings Limited in Tanzania.
The group also registered a 22% increase in earnings per linked share. In October, the board of directors approved an interim distribution of eight thebe per linked unit split as debenture interest of 7.99 thebe and dividends of one thebe per unit in respect of the six months ended July 31, 2015 to all registered unit holders with the company at close of business on November 13, 2015.
Currently, Turnstar has 13 properties; six in Gaborone, two in Mogoditshane, one in Francistown and four in Dar-es-Salaam. The group also has retail bias with unique regional shopping centre such as Game City in Gaborone and Mlimani city in Dar-es-Salaam. About 67% of their space is occupied by retail, 16 percent by offices in Tanzania, nine percent by offices in Botswana, six percent by residential while the remaining one percent is occupied by light industrial.