Low market values pull Prime Time down

Primetime Holdings expects a drastic decline of 84 percent in its financial year- end August 2020. In its results for the year ended 2019, the company’s profits before tax was P61million. In a statement, Primetime Chairlady Petronella Matumo, stated that the profit before tax for the year ended 31 August 2020 is expected to be materially lower than the previous year by approximately P52 million She stated that the decrease is attributed to the year- end market values and investment properties.“Whilst the group has lost some rental income as a result of necessary concessions given to tenants due to business disruptions caused by Covid- 19, the primary reason for this decrease is the effect of year end market values of investment properties which are significantly lower in the current year than in the prior year.”

The Company is expected to publish the audited final financial results by 14 December 2020.

In its half year ended February 2020, Primetime recorded nine percent increase in contractual lease revenues while investment property value increased by eight percent.

Primetime Managing Director, Alexander Kelly said although income dropped as relief was offered to vulnerable tenants during the lockdowns, these concessions have strengthened relationships with many tenants and enabled leases to be reconfigured at lower rates in return for secure longer- term income.

In the half year period, the group saw its footprint of the lettable space increase with the addition of the South African properties and the extension to the Pilane Crossing mall. “The mall, which is now 100 percent occupied with Mr Price finally having been able to commence trading, is reaping the benefit of the considerable efforts made by the management team to become the success we always knew it should be.”

During the months of April and May 2020, the Group gave some rental discounts to tenants adversely affected by government interventions which have restricted, and in some cases prevented, their ability to trade. Kelly had pointed out that on the cost and cashflow side, management was doing all it can to minimise the negative effect of the rental lost by the Group. “Some cashflow relief has been obtained from several of the Group’s funders and talks are still in progress with others. Operating costs are being cut where possible and a good recovery of utility charges is being maintained. Recent reductions in the LIBOR, JIBAR and Botswana prime interest rates will all impact positively on the Group’s total interest cost over the next few months.”