Saturday, December 3, 2022

Prime Time beats recession, bullish on the future

Prime Time Holdings, a well diversified property developer, shrugged off the effect of recession as its rental revenue firmed in the six months to end of February this year.

In its unaudited results, it said rental revenue firmed by 9.5 percent leaving it  with  profit after tax of  P 16 million  compared to P 15 million  during a corresponding period in the prior year.

Earning per linked unit shares was better at 8.96 thebe from 8.51 thebe while assets ballooned 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.  Some of prime buildings 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 that enabled it to withstand the impact of the global economic crisis.

The variable rate loan stock outfit  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  six months to end of  February this year,  the  company has been actively building its assets as it bought  G4S building along the Western Bypass, came up with  a shop at Boiteko Junction  in Serowe, fast tracked the  construction of  both Sebele Centre and Prime Plaza in the CBD.  

“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.

 The global economic crisis that was sparked by the subprime lending the United States of America quickly spread into global financial crisis. The financial crisis was the worst since World War II.

However, Prime Time said there are some silver lining going forward saying that its new key projects that were started last year are on target and budget.

The main projects are Sebele 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 CBD, the company is planning to construct the Prime Plaza in a number of  phases up to  four. Further, it indicated that it is also looking for some growth opportunities within Botswana and the region.

The company declared dividend of   8.01 thebe per link unit share that is to be paid to shareholders on May 27.


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