Turnstar profits flat in lukewarm market
Pauline Dikuelo | Thursday October 26, 2017 15:03
Despite the tough trading conditions, the company attributed the increase to a 4.5% increase in group rental revenues.
Group managing director, Gulaam Abdoola said the newly developed section of Game City and Mlimani retail malls’ rental income would have a direct positive impact on the group’s profits in the next reporting period.
“The newly developed sections of the Game City and Mlimani City retail mall in Tanzania are now being tenanted and the additional rental income would only be fully reflected in the next financial year,” he said.
The MD said the construction of the new phases to the Game City and Mlimani City properties were delayed due to heavy rains in Gaborone and Dar Es Salaam.
Abdoola said the tenanting of the newly developed areas at Game city were further delayed due to the tenants facing problems in obtaining trading licences adding that the matter has now been resolved.
“Four commercial office blocks at Mlimani City are currently vacant and management is making every effort to find suitable tenants for the space,” he said.
The Game City and Mlimani City developments boosted the group’s investment property portfolio, which increased to P 2.3 billion.
During the half year, the group repaid a $9 million loan, further improving the group’s gearing ratio to 25%.
The group’s earnings per shareholder were P9.85 per linked unit split as debenture interest of P7.00 and dividends of P2.00 per unit in respect of the six months ended July.
“Payment of the distribution would be dispatched by the transfer secretaries about 6th December this year,” he said.
According to Abdoola, the dollar depreciated against the pula, during the half year noting that the depreciation was significantly lower than that experienced during the corresponding half year that ended July 31, 2016.
“As such, the translation loss reported for the half year 31 July 2017, when translating the US Dollar denominated investments and other financial assets of the company in the Group’s Tanzanian subsidiary, Mlimani Holdings Ltd, was significantly lower than that reported during the half year ended 31 July 2016,” he said.