FAR PROPERTIES RECORDS PROFIT
The Botswana Stock Exchange-listed property investment and real estate firm, FAR Properties has recorded an 11% increase in profit before tax of P96 million from P86 million registered in the corresponding period. According to the group’s financial results for the year ended June 30, 2021, its portfolio value stood at P1.35 billion of which 43% is industrial, 49% commercial while nine percent are all backed by long-term leases.
About 78% are retail with national and international brands, 19% is local tenants and medium-sized business, three percent is new start-up companies and small business operations. Vacancies across the portfolio remain below five percent while rent yield remained at a stable level of 10%.
The company’s director, Vidya Sanooj said they have continued to effectively manage a portfolio that showed resilience despite the impact of COVID-19 in all geographies that the group operates in.
“There has been agility in swiftly adapting to changes in consumer behaviour and new ways of thinking and working,” she said. As part of its expansion plans, the group announced that there are two new projects in the pipeline to fund growth and stability. “Two additional properties have commenced development in the current year and will provide additional revenue in the current year,” she said. “Diversification of the portfolio remains a key consideration of the board to ensure a better and stable yield.” According to Sanooj, the two commercial properties are close to completion on time and within budget adding that tenants have already been secured. These properties are expected to add to the group’s revenue for the 2022 year-end. Earlier this year the group revealed that they were constructing the Gumare retail development and Hospital Way Clinic, which will cost them P20 million.
The company has a wide geopolitical spread in Botswana, South Africa and Zambia with the majority of its properties located in urban and semi-urban areas.
FAR Properties was formed in June 2020 after the founders realised the need to establish a portfolio of companies that could answer the property requirements of the Choppies group in 2019.