State owned housing agency – Botswana housing Corporation (BHC) has recorded a 3 percent decline in its rental revenue, the corporation’s latest financial statements shows. The decline in rental revenue from P198 million in 2018 to P193 million (2019) has been blamed on disposal of some of the corporation’s investment properties.
BHC’s latest financials shows that total rental stock at the end of the reporting period was 9 691 units.
“The corporation’s strategy is to maintain the rental units at 10 000 units to meet the corporation’s operating costs”, noted BHC Chief Executive Officer – Reginald Motswaiso in a statement accompanying the financial results for the period that ended March 2019.
BHC however registered total revenue amounting P511 million reflecting 7 percent upward movement from the P478 million recorded in the prior year.
The increase in total revenues was mainly due to increase in sales revenue which increased significantly by P23 million or 32 percent, from P71 million recorded in the prior year.
Meanwhile professional fees revenue is the third significant revenue stream for the corporation. The stream has been showing an upward trend year on year. For the year under review, the income from professional fees increased by 19 percent to P37 million from P31 million in the prior year.
On the other hand, BHC’s facilities management income, which is income from maintenance of properties for third parties, increased year on year by 153 percent or P29 million.
Motswaiso said that professional fees and facilities management income are income lines which are to be grown going into the future as part of the corporation’s strategy to diversify its revenue streams.
BHC is expected to construct new 551 units will in Gaborone, Palapye, Jwaneng and Tutume during the 2019/2020 financial year.
The state-owned housing enterprise said that says that these are areas where the Corporation has established that there is effective demand and the houses are expected to be taken by the market.
The corporation’s balance sheet remains strong with total assets amounting to P3.4 billion, an increase of 13 percent year on year.