Railpark Mall acquisition spurs LLR profits
Letlole La Rona Limited is expecting profit before tax for the unaudited results for the half year ended last December to be between P18.0 million and P21.3 million above the prior year’s profit of P32.8 million.
The property has attributed the hike in profit to maintenance of the weighted average annual lease escalations of seven percent, high occupancy rates achieved during the period and tight cost control measures that have been implemented. “The above, coupled with the impact of the economic recovery, have had a positive effect on the valuations of the investment properties, leading to a net fair value gain of P12.1 million in the current period compared to the P8.4 million fair value gain from the prior year,” said LLR in a notice to shareholders. In addition, the profit before tax for the period to be reported upon next report will differ by at least 10 percent from the most recent financial results for the previous corresponding period.
Meanwhile, LLR recently acquired a 32.79 percent shareholding in JTTM Properties, a company that owns one of the prime retail malls in Gaborone, Railpark Mall, for a purchase consideration of P152 million last December.
LLR’s value in Railpark Mall had increased by P4.5 million, contributing to the substantial improvement in the financial results of the company under the ‘ Go to Africa’ strategy. Last year, LLR Board Chairman, Oteng Keabetswe said despite battling COVID- 19 operational challenges, governance and leadership challenges, the company continued its consistent trajectory of delivering shareholder value through prudent balance sheet management and the maintenance of low gearing levels even before the outbreak of the pandemic.
“Our strong tenant base and diversified portfolio with investments into defensive asset enabled us to maintain inflation, beating average annual lease escalations at seven percent whilst our acquisition of six prime industrial properties at the conclusion of the 2020 financial year underpinned strong revenue growth.”