In a cautionary statement to the bourse, the company attributed the decline largely to reduced fair value gains on its investment property portfolio, reflecting shifting market dynamics in Botswana’s real estate sector. “The decrease is primarily attributable to a significant reduction in fair value adjustments on investment property, with fair value gains declining by approximately P38.7 million,” Turnstar board said. Turnstar noted that the weaker valuations were driven by the application of higher discount and capitalisation rates across its Botswana assets, signalling a more cautious outlook on property income streams amid tightening financial conditions.
“This was mainly driven by higher discount and capitalisation rates applied to the Botswana property portfolio in response to prevailing market conditions,” directors added. Despite the headline drop in profitability, the group’s core operations remained largely resilient, with operating profit slipping marginally by just 0.78%, pointing to stable rental income and occupancy levels across its portfolio. “The Group’s underlying operational performance remains stable,” the board said. The development comes at a time when Botswana’s property sector is navigating a more challenging macroeconomic environment, characterised by tighter liquidity conditions, rising interest rates and softened investor appetite for real estate assets.
