Property development company, Turnstar Holdings expects more profits in its full year ended 31 January 2016 financial results. According to a statement signed by Turnstar Managing Director Gulaam Abdoola and other directors, this year’s results will be significantly higher than those reported for the year ended 31 January 2015.
“The board of Turnstar advises its stakeholders that the Group’s results for the year ended 31 January 2016 will be significantly higher than those reported for the year ended 31 January 2015. The results will be published before 30 April 2016,” reads the statement. Last year the company recorded six percent increase in revenue to P235.7 million. Botswana operations recorded an increase of 3.2 percent to P132.2 million while Tanzania recorded 9.1 percent increase to P103.5 million. The company’s operating profit increased by eight percent from the prior year to P158.6 million while the property operating expenses decreased by 18 percent from the prior year to P98.5 million.
In the company’s annual report for 2015, Abdoola said Botswana’s overall property market remains relatively strong in a challenging economic atmosphere. He said despite the economic factors both demand and property values have continued to rise. According to the report, the commercial office sector experienced an oversupply with vacancies increasing to 5.9 percent while the retail sector remained stagnant due to additional retail space entering the market. “The groups property portfolio shows attractive future prospects supported by strong underlying contractual cash flows, escalations and a healthy lease expiry profile,” said Abdoola, adding that Game City is the largest and only regional shopping centre in Botswana while Mlimani City is the largest purpose built indoor shopping centre in Tanzania.
From 2013, rental income has been gradually declining as the figures indicate that Botswana, portfolio recorded 61 percent, 57 percent in 2014 and 56 percent in 2015. Tanzania operation has been increasing recording 39 percent in 2013, 43 percent in 2014 and 44 percent in 2015. He said Turnstar’s portfolio has limited exposure to the Botswana office sector. The retail sector in Botswana portfolio constitutes 68 percent of tenants while the Tanzania portfolio constitutes 67 percent retail exposure by revenue excluding the conference centre.
Currently Game City expansion is ongoing. An additional 9000 square metres exhibition hall comprising restaurants, a food court, multifunction entertainment area and playground is being constructed at the upper level.Turnstar property assets in the Botswana Stock Exchange are valued at over P1.7 billion. Its Tanzanian operation generates US dollar revenue and 44 percent of the company’s total rental income is in US Dollars.