Prime Time Holdings, a well diversified property┬ádeveloper, shrugged off the effect of recession as its┬árental revenue firmed in the six months to end of February┬áthis year.
In its unaudited results, it said rental revenue firmed by┬á9.5 percent leaving it┬á with┬á profit after tax┬áof┬á P 16 million┬á compared to P 15 million┬á during a corresponding period in the prior year.
Earning per linked unit shares was better┬áat┬á8.96 thebe from 8.51 thebe┬áwhile┬áassets┬áballooned from P 264 million to P 388 million.
Prime Time is well diversified and owns some good quality buildings in some prime location in Gaborone, Gantsi, Francistown, Lobatse, Ramotswa and Serowe.┬á Some of prime┬ábuildings include the UN Place, South African High Commission and Bank Gaborone head quarters.
It also boosts of a diversified portfolio in the prime areas backed by good quality tenants┬áthat┬áenabled it to withstand the impact of the global economic crisis.
The┬ávariable rate loan stock outfit┬á derives its revenue primarily from property rentals.
It is the third property development company to be┬á quoted on the Botswana Stock Exchange (BSE)ÔÇö with the fourth one due to list┬á within the next one and half months.
During┬á six months to end of┬á February this year,┬á the┬á company has been actively building its assets as it bought┬á G4S building along the Western Bypass, came up with┬á a shop at Boiteko Junction┬á in Serowe, fast tracked the┬á construction of┬á both Sebele Centre and Prime Plaza in the CBD.┬á┬á
“Ellerines Furnishers took occupation of the new shop created for them at Boiteko Junction in Serowe. We have been experiencing difficulty in the market place, however, with┬ásome tenants in some properties coming under financial pressure as recessionary effects are felt. We continue to put increased time and effort to manage this, and as a result our vacancy rates and tenant failure still remain minimal,” the┬ácompany┬ásaid.
┬áThe┬áglobal economic crisis that was sparked by the subprime lending the┬áUnited States of America quickly spread into┬áglobal financial crisis. The┬áfinancial crisis was the worst since World War II.
However, Prime Time┬ásaid there are some silver lining┬ágoing forward saying that its new key projects that were started last year are on target and budget.
The main┬áprojects are┬áSebele Center, which it said is almost complete while Prime Plaza in the CBD has received considerable support from the market.
“The Sebele Centre is now almost complete and is on budget. It is virtually 100 percent let with Phase II to be┬ácompleted by July 2011.
The Prime Plaza in the new CBD is progressing┬áon schedule and within budget with strong interest being shown by prospective tenants,” the company said.
Due to strong interest on the┬áCBD, the company is planning to construct┬áthe Prime Plaza in a number of┬á phases up to┬á four. Further, it indicated that it is also looking for some growth opportunities within Botswana┬áand the region.
The company declared dividend of┬á┬á 8.01 thebe per link unit┬áshare that is to be paid to shareholders on May 27.