Far Property Considers South African Exit in Strategic Realignment

Far Property Company (FPC) may divest some properties from its South African portfolio to address economic uncertainty in the country, strengthening its focus on stable markets like Botswana and Zambia, the Group revealed in its 2024 integrated annual report.
Listed on the domestic board, Far Property is a prominent property investment firm.
Chairman Reetsang Willie Mokgatlhe highlighted FPC’s dedication to a balanced and diversified portfolio while adapting to market shifts. Reflecting on the company’s approach, Mokgatlhe noted, “Our growth strategy is managed growth. We intend to continue with our strategy to ensure creation of value for our unitholders.”
For the financial year ending June 2024, FPC reported a 10 percent revenue increase, reaching P168 million, and a 27 percent rise in profit before tax to P173 million. The company’s solid financial results, including a conservative loan-to-asset ratio of 20 percent and a stable rent yield of 10 percent, underscore its careful debt management and commitment to consistent investor returns. Operating profit also grew by 8 percent to P151 million, demonstrating FPC’s resilience amid challenging conditions.
Mokgatlhe reiterated the company’s cautious financial approach, stating that FPC’s balanced debt and equity structure enables it to withstand economic fluctuations. “We continue to be competitive when compared to our peers, and with our current land bank, we will continue to be competitive well into the foreseeable future while sustainably growing our portfolio,” he added.
South Africa’s economy has faced substantial challenges, expanding by a modest 0.6 percent in 2023, with sectors like transport, storage, and communication contributing to growth. Persistent issues—electricity shortages, high inflation, and investor caution ahead of the 2024 elections—have created a tough business environment. The economy showed slight recovery in Q2 2024, growing by 0.4 percent, driven by gains in finance, manufacturing, and trade.
Inflation dropped to 5.1 percent by June 2024, approaching the South African Reserve Bank’s 4.5 percent target, raising the prospect of a rate cut. While these adjustments may offer short-term market relief, FPC’s strategy reflects a focus on reducing exposure rather than waiting for potential improvements.
Given South Africa’s economic landscape, FPC is redirecting its investments toward Botswana and Zambia, with plans to expand its land bank and prioritise energy-efficient projects.
“The Board, in partnership with solar energy companies, has approved the implementation of a sizeable rooftop solar system in our industrial and commercial properties, which is expected to generate about 15 MW, providing significant power savings,” Mokgatlhe announced.
Mokgatlhe emphasised FPC’s sustainable approach, stating, “With our current land bank, we will continue to be competitive well into the foreseeable future while sustainably growing our portfolio.”
This shift towards regional stability reflects FPC’s commitment to managed growth and asset preservation.