Board of Directors of Letlole La Rona Limited (LLR) announced that the Company is expecting profit before tax (from continuing operations) for the half year ended 31 December 2021 to be between 55 percent and 65 percent above the prior year’s profit. In pula terms this is between P18.0 million and P21.3 million higher than the previous P32.8 million.
The main reasons for the significant increase in the Company’s profitability is the maintenance of the weighted average annual lease escalations of 7 percent, high occupancy rates achieved during the period and tight cost control measures that have been implemented, says the board. 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, the board explained.
Effective December 2021, the Company acquired a 32.79 percent shareholding in JTTM Properties (Proprietary) Limited, a company that owns one of the prime retail malls in Gaborone, Rail park Mall, for a purchase consideration of P152 million. As at 31 December 2021, LLR’s value in Rail park Mall had increased by P4.5million, contributing to the substantial improvement in the financial results of the Company. The Company is currently finalising its unaudited results for the half year ended 31 December 2021.