Africa-Press – Botswana. Driven by strong occupancy across its diverse property portfolio, Turnstar Holdings Limited Group has reported a notable increase in rental income and operating profit for the financial year ending January 31, 2025.
According to the company’s recently released financials, rental income climbed to P344.1 million, a 5 percent increase from P328.5 million in the previous year. “This is attributed to strong rental income growth from all jurisdictions within the Group,” the report notes.
The Group achieved operational profit before exchange differences and fair value adjustments of P151.6 million, up 10 percent from P138.0 million recorded in 2024. The report attributes this growth to consistent rental collections and improved operational efficiencies.
Reduced forex losses
Operating profit rose to P185.9 million, compared to P165.9 million the prior year. Turnstar cites reduced foreign exchange losses and improved credit loss allowances as key contributors.
“The credit loss provisions were lower this year due to strong rental collections, especially in the latter quarters,” the company states.
Meanwhile, real earnings per share grew to 26 thebe from 24 thebe in 2024, reflecting the Group’s enhanced profitability.
Fair value gains, which represent increases in the market value of investment properties, declined slightly to P41.1 million from P49.8 million, although the report notes this still reflects “strong occupancy rates across all properties”.
Disciplined capital management
Finance costs remained steady at P38.9 million, suggesting disciplined capital management during the period.
The Botswana portfolio, which includes flagship assets like Game City Mall and Tapologo Estates, recorded a satisfactory performance. The report indicates an impressive 98 percent occupancy rate, with only minor vacancies arising from lease transitions.
“Enhancement works are progressing at Game City and Tapologo to ensure the competitiveness of these assets in a shifting market,” says the company.
Tanzania outlook
Turnstar’s largest single asset, Mlimani City in Tanzania, accounted for 46 percent of the Group’s portfolio value. The property registered improvements in office leasing and stable retail footfall.
The report also highlights plans to upgrade the Mlimani Conference Centre “in both technology and aesthetics to maintain its regional relevance”.
The company notes that Mlimani contributed significantly to rental arrears recovery, especially during the fourth quarter.
Dubai
In Dubai, Palazzo, a mid- to upper-tier residential complex, maintained 100 percent occupancy throughout the financial year. The report attributes this to the property’s “strategic location and tenant stability”, with market conditions described as “favourable.”
While the office property sector in Botswana continues to lag due to macroeconomic constraints and persistent unemployment, the industrial and retail segments have shown moderate growth.
“Consumption and local manufacturing are driving demand in these sectors,” says the report.
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