New African Properties (NAP) increased payouts to investors despite a sharp decline in annual profit, as higher rental income and better returns on cash investments helped sustain distributions.
The Botswana Stock Exchange-listed property company paid investors P207.2 million for the year ended July 2026, up from P201.4 million in the previous year. Each linked unit earned a distribution of 34.28 thebe, compared with 33.32 thebe in 2025, an increase of 2.9 percent.
However, NAP’s profit fell by 29.3 percent to P144.4 million from P204.2 million a year earlier. The company attributed the decline mainly to changes in property valuations, tax-related costs and the increase in Botswana’s corporate tax rate.
The fall in profit did not prevent NAP from increasing its payouts because reported profit and the cash available for distribution are calculated differently. Distributable income, which the company uses to determine investor payouts, rose by 2.3 percent to P206.1 million from P201.5 million.
NAP said the improvement was driven mainly by higher rental income and better returns on money invested in money market funds. However, operating expenses rose by 9 percent to P64.1 million from P58.9 million, eroding some of the gains.
Total revenue declined slightly to P253.3 million from P257.8 million, although income from contractual rent and recoveries increased to P261.6 million from P253.9 million. The difference reflects, in part, accounting adjustments affecting when rental income is recognisedin the financial statements.
NAP owns 67 properties across Botswana and Namibia, including 60 in Botswana and seven in Namibia. Its portfolio is concentrated in retail properties, making rental income and occupancy levels important drivers of its financial performance.
Vacancies increased during the year, accounting for 6.8 percent of total lettable area, compared with 6.4 percent in 2025. The company said multinational companies and listed businesses contributed 70 percent of its rental income, while it continued to provide space to local and emerging businesses.
At Riverwalk Mall, the lease covering most of the property expired in May 2026. The rights held by NAP under the lease reverted to Edco Investments, in which NAP retains a 26 percent interest.
At the end of July, NAP’s total assets stood at P1.76 billion, slightly below the P1.77 billion recorded a year earlier. Its property portfolio was valued at approximately P1.54 billion, while cash and cash equivalents stood at P5.4 million.
Investors recorded a total return of 9 percent during the financial year, combining distributions received with an increase in NAP’s unit price from 404 thebe to 406 thebe.
Despite the higher payouts, NAP warned that difficult economic conditions could put pressure on future distributions. Its ability to sustain investor payments will depend on rental income, controlling vacancies and managing rising operating costs.
