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Industrial Property swells Letlole La Rona Earnings

Kitso Dickson
Staff Journalist

Letlole LaLetlole la Rona (LLR) board of directors say the property outfit is enjoying a stable regular flow of rental income, a product of a good tenancy base widely upheld by industrial property.
The company, headed by Chief Executive, Paul More closed rental income for the full year ended June 2015 at P67.1 million, representing a 12 percent leap the previous corresponding period. “LLR operates in the Industrial, Leisure, Retail and Commercial Office property space with most of property investment space skewed in favour of industrial property followed by leisure space,” the board says. Moreover, they reveal that “the hotel space continues to be let to one stable operator, with leases that accommodate annual compound escalation of rental”. This has contributed to contractual revenue growing at an inflation beating rate of close to 10% relative to prior year.
While the property market has faced challenges, a by-product of speculative development especially in the commercial office sector and the downward pressure on economic activity, the board assured that LLR’s portfolio continues to show resilience as its property portfolio performed well reaching a gross yield of 10.8%. “This is primarily attributable to sound property management principles as well as contractual revenue growth in real terms through timeous application of rental escalations,” they stated.
Nevertheless, they note that in order to diversify and grow its portfolio, and as part of its strategic intent targeting increased market capitalisation, the Botswana Stock Exchange listed property firm will consider investing in new acquisitions as well as developments.
Year-on-year investment value ballooned to P622.3m, reflecting an 8% increase over last year’s value of P578.5m. This was occasioned by, according to the boards, an independent valuation of the property portfolio resulting in a revaluation.
Profit after fair value adjustment and before tax closed year at P97.3m compared to P92.6m the corresponding period, of the prior year. “The fair value of the Company’s investment properties at 30 June 2015 was based on open market values of the properties as at year end,” cites the board. They add that “strong cost controls coupled with increase in total revenue generated from contractual rental income and investment,” reflected profit before fair value adjustment of P60.7M, a 27% year-on-year increase from P47.7m.

© 2015, Boidus. All rights reserved.

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China Homelife Fair 2016

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ARCHITECTS’ REGISTRATION COUNCIL: PUBLIC AWARENESS WORKSHOP

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The Architects’ Registration Council will conduct workshops to, apprise the public, create awareness and educate the public on the requirements of the Act and the mandate of the Council as stipulated in the Architects’ Registration Act.

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The home Walter Gropius built for his family soon after moving from to the US from Germany had a dramatic impact on American architecture. Its detailing keeps strongly to the principles of the Bauhaus, which Gropius had founded and directed in Germany, exploiting simple, well-designed but mass-produced fittings for steel wall lights, chromed banisters etc., as well as in the structure of the house (glass block walls complementing the wooden frame and New England clapboarding).

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