Boosts of 204 properties – 179 in Botswana; 24 in SA; one in Zambia
Two more commercial values being completed
FPC declares 17.80 Thebe dividend
Regional property dealer The Far Property Company (FPC) has defied difficult trading environment compounded by the devastating effects of Covid-19 to post P138.2 million total revenue for the financial year ending June 2021, representing an increase of 3 percent from the previous year.
The just released 2021 Integrated Annual Report for the company reveals that they posted an 11 per cent jump in net income from operations, reaching P95.9 million compared to P86.23 million in 2020.
FPC has various forms of properties in three markets of Botswana, South Africa and Zambia with a combined value of P1.35 billion covering 238 014 square metres. Of the 204 properties 179 are in Botswana; 24 in South Africa and one in Zambia. Three properties were added in Botswana during the year under review. The company enjoys the lowest vacancy rate in the market at 4 per cent.
The company’s founder and director, Ramachandran Ottapathu said in the Annual Report: “During the year we continued to prioritise the health and wellbeing of our employees across the group given the Covid-19 pandemic. We continued to extract value from existing properties through expansion and upgrade programmes, including repainting and refurbishments, preventive maintenance systems put in place, expansion of retail floor space in Thamaga and Letlhakeng, improving infrastructure facilities and developing community parking at Metsimotlhabe retail outlet, as well as new developments”.
He further disclosed that two commercial properties are close to completion on time and within budget and tenants have already been secured, adding that these properties will add to the group’s revenue for the 2022 year-end.
“Since inception, greater tenant demand has resulted in the group growing exponentially from managing a portfolio of smaller shopping centres to a growing manager and developer of retail, commercial, industrial and residential real estate across Botswana, Zambia and South Africa and listed on the BSE,” said Willie Mokgatlhe, the FPC Board Chairperson in his statement in the Annual Report.
He said this has shown the group’s capabilities to adapting in an everchanging and demand-driven market.
“The group’s primary objective is to deliver long-term value to its stakeholders. We strive to have this reflected through the company’s annual portfolio yields and capital appreciation of assets which is represented in the group’s performance for FY21. Notwithstanding the challenging macro-economic conditions and the negative impact of the Covid-19 pandemic, FPC’s net income from operations increased by 14% during the financial year. This performance translated into a distribution to unitholders of 17.80 (2020: 16.80) Thebe per linked unit,” Mokgatlhe declared.
He said the group acquired three additional properties in Botswana and has embarked on a number of development projects, further demonstrating its growth ambitions.
“In Zambia, FPC continues to utilise its retailers’ strategy to better target one of the fastest growing populations in Africa which we consider to be an underserved market and with minimum formal retail penetration. As a result, FPC will continue to ensure greater utilisation of the commercial space in Zambia and identifying and evaluating opportunities.”
The group disposed of some of its property in South Africa but has continued to see growth in the area with the company store-space and infrastructure being provided and greatly exploited by major retailers. The company’s distribution of properties stands this way: 75 retail/commercial; 58 industrial; and 71 residential.