Prime Time profits rise
Prime Time Properties profits increased to P40.4 million in the half year ended February 2022 as the disruptions caused by Covid- 19 eased. The group’s profits rose significantly from P5.4 million in the same period last year.
The group highlighted that rental levels from existing properties have been relatively flat but there is an increased income and growth coming from new properties, Pinnacle Park and Lobatse.
Commenting on the published results, Prime Time Chairlady, Petronella Matumo said vacancies are low and where tenants have moved, the group has and is finding replacements. “In terms of vacancies, notably those in Zambia have significantly reduced since the prior year- end and across the portfolio, we are starting to see faster turn- around times in filling voids as they arise.”
The group opened Lobatse Junction retail centre in October 2021 with full rentals reflecting from November 2021. Pinnacle Park was completed by the end of the 2020 financial year and the final unit has now been let out with effect from 1 July 2022.
She said the group has also experienced increased cost during the period as new properties such as Lobatse Junction, by their nature as multi- tenanted retail malls, carry a higher cost base. “Generally, across all the regions we operate in, utility and municipal costs have increased above inflationary levels and recoveries must continually be adjusted upwards to keep pace where possible.” The group also incurred additional refurbishment costs to fill vacancies with suitable tenants.
Matumo highlighted that two property disposals brokered in the prior financial year, namely retail centres in the rural locations of Ghanzi and Ramotswa, were transferred by the end of January 2022 and the proceeds of these are redirected into the first building of Prime Plaza II in the CBD, unlocking this portion of the land bank. “Due to current material availability issues and our model of building out the basement for the whole site with Building I, the development program is currently indicating that completion will be towards the end of the next financial year 2023. Early indications are showing strong demand from quality tenants for this space.”
She also pointed out that management and the board continue to partner with funders to restructure and reduce the group’s overall debt ratio levels. “In terms of development pipeline, Phase II of Prime Plaza in the Gaborone CBD is underway. The major extension to our Boiteko Mall in Serowe is still being considered on the back of strong tenant demand and we have land to extend Pinnacle Park.”