The P20 million foreign exchange loss reported, resulted in the property company’s profit falling from P34 million to P5.4 million in the reporting period.
The company says that with the inter-company loan from Botswana recorded in USD movements, this can cause large unrealised profits or losses. An analysis of the underlying operating profits during this interim period shows a slight decline of 3 percent compared to the pre-covid period of February 2020. Contractual rental income is slightly down 4 percent year-on-year. Management views both of these indicators as a positive result given the tough economic conditions being navigated at the moment. Focusing on income, the first 6 months of this financial year includes a full contribution to revenue from the two new properties acquired in South Africa during the course of the comparative prior period, as well as some revenue from the new Pinnacle Park development in Setlhoa which achieved practical completion late August 2020.
“We continue to receive support from our funders and our program of renewing/replacing maturing debt is on track,” the company says adding that “this will continue into the next financial year to achieve our ultimate goal of lengthening and spreading the tenures”.