Retail property developer, Turnstar holdings will see its financial performance go up by approximately 497 percent in the year ended January 2019.
Last year the group’s comprehensive income was P25.7 million and has now increased to P128 million this year. In a statement,Turnstar Board of Directors pointed out that due to several factors which will be disclosed by April 30th, the groups total comprehensive income for the year will be materially higher than that reported last year. “Shareholders and investors are advised to exercise caution when trading in the company’s securities until such a detailed announcement as to the results is made,”
In its half year ended July 2018, the group recorded a total comprehensive income of P108.3 million with a profit of P55 million. Commenting on the results the group Chairman Patrick Balopi explained that rental revenue and operational expenses remain at par with the previous half year.
“The increase in finance costs are due to interest on loans obtained for the expansion of properties, being capitalized for a part of the previous year,” he said.The company highlighted some factors which lead to low performance last year such as the delay in the completion of Game City mall and the trading licenses for foreign retail shops.
Turnstar Group Managing Director, Gulaam Abdoola said these issues delayed the leasing of the new wing of Game City. “We could no longer hold the stores for the tenants who had signed preleases but could not obtain their trading licenses. We have leased these stores to other tenants and the new tenants needed a period of beneficial occupation before they started paying rent.,” said Abdoola.
Last year the company also purchased an office block in Dubai. In Tanzania the group experienced delay in the completion of the construction, resulting in the delay in leasing of the new developments.