Letlole withstands COVID-19 volatility

Home grown property outfit Letlole La Rona Limited (LLR) recorded profit before tax of P79.9 million, representing a 24% growth despite hurdles presented by Covid-19.

The Botswana Stock Exchange Limited (BSE) listed diversified real estate company unveiled the results on Friday.

LLR Acting Chief Executive Officer (CEO), Kamogelo Mowaneg said the 25 assets directly-owned by the company and two (2) core-owned assets investment portfolios have a value of P961 million.

Mowaneg said the industrial portfolio emerged as the main contributor to the revenue.

“During the nationwide lockdown from April, only 42% of our tenants were classified as the essential services while 58% was not deemed essential. This meant that there was a decline in rental money. We offered rental deferments for our tenants as they recover,” said Mowaneng.

In addition, she said the pandemic had impact on the acquisition and transaction of regional expansions which forced them to suspend activities in that space.

She said the company’s main focus is on local expansion while also reassessing the regional expansion pipeline. She is upbeat that Letlole will also improve on collection rates next year.

“Going forward, our focus will remain on prudent capital allocation for maximum shareholder returns. We also remain vigilant to value-enhancing opportunities including capital recycling, refurbishments and acquisitions after having reconsidered our pipeline against current and the expected market conditions. The economy has been hit hard but we overcame hurdles,” she said.

LLR Board chairperson Boitumelo Mogopa said the company posted impressive results for the period under review despite the tough trading environment that persists amid Covid-19 storms.

Mogopa hailed Mowaneng for displaying consummate leadership for the company in her term.

Giving operational highlights of the business, Property Manager at LLR, Baalakani Nlumbile, said the company made additional acquisition of property to tune of P174.4 million during the year.

He averred that the company acquired six prime industrial properties that will boost LLR revenues.

Nlumbile said that the company completed the sale of its hotel investment portfolio to the tune of P235 million last year, adding that the next 18 months will be tough for the local property market.

The company said the earnings per share increased by 10% from 23.44 Thebe in the prior year to 25.68 Thebe whilst the defensive property portfolio also achieved a significant 32% growth.

During the period under review, LLR announced that the final distribution of 8.929 Thebe per linked unit was declared, bringing the full-year distribution to 16.12 Thebe per linked unit.