Rental revenue bolsters Turnstar's profits
Lewanika Timothy | Tuesday April 16, 2024 09:17
According to the published results, rental revenues for the group rose by 13% totalling P328.5 million compared to the corresponding year which ended in P291.3 million. Turnstar executives apportioned the surge in rental revenues to strong rental income growth in all jurisdictions in which it operates.
“The increase in rental income, partly offset by an increase in operational expenses, resulted in an increase of approximately P22.8 million in the group’s operational profit compared to the corresponding year, P176.1 million for the year ended 31 January 2024 compared to P153.3 million for the year ended 31 January 2023,” the executives revealed. In Botswana, Turnstar owns well-known assets such as Game City Mall, Nzano Mall, Mogoditshane Supa Save, Turnstar House, Tapologo Estate and Mogoditshane Town Houses.
The group realised a fair value gain on its investment property portfolio of P49.8 million for the full year. Further supporting the strong performance of the group was the restructuring of some of the loan facilities obtained from the prior year. “The group's profit before taxation for the year ended 31 January 2024, is expected to be P65.4 million, higher compared to the previous year P177.5 million for the year ended 31 January 2024 compared to P112.2 million for the year ended 31 January 2023,” executives added.
In 2017 the enterprise expanded its Game City shopping complex to include additional retail space, a fashion avenue, restaurant area including food court, entertainment area and a parkade. The project was financed through a long-term loan facility of P250 million from the First National Bank of Botswana (FNBB).
Other acquisitions included the purchase of a prime property complex in Tanzania for US$77 million (P557.5 million), the closure of the deal gave full ownership to Turnstar which now wholly owns Mlimani. The Tanzania assets consists of a multi-business area comprising shopping centre, an office complex, a top-class conference centre and a residential housing estate with 50 units.