PrimeTime reported its unaudited interim consolidated financial results for the six-month period ended 28 February 2026, with higher revenue, stronger profitability and further progress in reducing leverage through its capital recycling programme.
Revenue increased 4 percent to P122.1 million, supported by stronger contributions from Zambia and South Africa, improved recovery income and continued resilience across the retained portfolio. Profit before tax increased 60 percent to P36.3 million, supported by improved operating profit and a P12.7 million profit on disposal of investment property. Profit for the period increased 67 percent to P31.0 million, while earnings per linked unit rose to 11.72 thebe from 7.00 thebe.
PrimeTime Chairman, Paul Masie, commented:
“PrimeTime delivered a resilient first half, supported by stable property fundamentals, disciplined capital allocation and continued execution against the Group’s deleveraging priorities.”
“The period reflects clear progress in simplifying and strengthening the balance sheet. Completed disposals generated proceeds ahead of carrying values, reduced debt and supported the Group’s capital recycling programme. At the same time, the retained portfolio continued to show solid operating resilience, with low vacancies and a diversified income base across Botswana, Zambia and South Africa.”
Financial performance overview
Rental income, excluding straight-line adjustments, increased marginally to P95.2 million. Botswana rental income declined 4percent to P61.3 million following three property disposals, two expired ground leases and a modest increase in vacancies, with contractual escalations supporting the remaining portfolio. Zambia rental income increased 4 percent to P26.7 million, led by MunaliMall, lease escalations and better occupancy. South Africa rental income increased 37 percent to P7.2 million, reflecting once-off lease-related income, annual escalations and foreign exchange translation effects.
Operating expenses increased 6 percent to P61.7 million, mainly due to higher utilities, maintenance, rates and administrative costs. Profit from operations before fair value adjustments increased to P62.2 million, helped by the absence of prior-period corporate action costs. No interim fair value adjustments were recognised, in line with the Group’s practice of recognising property valuation movements at year end following external valuations.
Finance costs increased 9 percent to P38.8 million and remained the main pressure point in the results. The weighted average cost of debt increased to 9.2 percent, from 7.9 percent at 31 August 2025, reflecting higher funding costs and changes in the Group’s debt mix.
Balance Sheet And Capital Recycling
PrimeTime continued to strengthen its balance sheet. Total borrowings reduced to P826.0 million, from P865.9 million at 31 August 2025, while the loan-to-value ratio improved to 43%, from 45% at year end. Cash and cash equivalents improved to P29.5 million, supported by disposal proceeds and operating cash generation.
PrimeTime’s Chief Financial Officer, Alice Wellio-Moyo, commented:
“The Group’s balance sheet remains the central focus of capital allocation. The reduction in total borrowings and the improvement in the LTV ratio reflect tangible progress in our deleveraging strategy.”
“Higher funding costs, particularly in Botswana, continue to place pressure on earnings. Against this backdrop, management remains focused on refinancing execution, careful liquidity management and converting held-for-sale assets into cash to reduce higher-cost debt.”
During the period, PrimeTime generated net proceeds of P64.9 million from property disposals and recognised a P12.7 million profit on disposal. As at 28 February 2026, the Group had classified P141.0 million of selected Botswana and South African investment properties as held for sale. These assets are being actively marketed and are expected to be disposed of within 12 months.
PrimeTime has agreed to dispose of four further assets in Botswana, and one asset in South Africa, which will accelerate balance sheet strengthening. The Botswana assets, with an agreed consideration of P98.5 million, are being sold to a related party that is one of the BPOPF’s direct property fund managers, and are subject to the usual regulatory approvals.
Portfolio performance and developments
The property portfolio remained resilient, with vacancy at 2%. Botswana remained the largest portfolio and a solid recurring income base. Zambia delivered improved income performance, supported by Munali Mall and stronger utility recoveries. South Africa produced strong rental growth from lease-related income, escalations and currency translation effects.
Prime Plaza II in Botswana and the Munali Mall expansion in Zambia remain key development priorities. For Prime Plaza II, the Board approved capital commitments of P83.4 million after the August 2025 year end, with approximately P76.3 million remaining at the interim date. The next phase of premium-grade office space in Gaborone’s CBD is underpinned by a 50 percent pre-let. The Munali Mall expansion has an approved project cost of approximately P13.0 million and will accommodate Shoprite’s expansion requirements.
The Group also continued to advance energy-efficiency and sustainability initiatives, including solar infrastructure in Zambia to improve energy security, support continuity of tenant trading and reduce reliance on diesel generators. PrimeTime expects to receive its first retrospective sustainability accreditations for selected existing properties before the end of the current financial year, including EDGE certification and Green Star ratings.
Distribution and outlook
No interim distribution was declared for the six-month period ended 28 February 2026. After considering the Group’s financial position, liquidity requirements, refinancing profile and approved deleveraging strategy, the Board determined that retaining cash was appropriate to support balance sheet resilience and position the Group for more sustainable future distributions.
PrimeTime enters the second half focused on refinancing execution, disciplined liquidity management, conversion of held-for-sale assets into cash and continued operational delivery across the portfolio. Proceeds from selected disposals will be allocated to debt reduction and, over time, reinvested into higher-yielding opportunities.
Masie concluded:
“The Group’s priorities remain clear. We are focused on preserving portfolio resilience, reducing balance sheet risk and allocating capital into opportunities that improve the long-term quality and income profile of the portfolio.”
“PrimeTime’s first-half performance demonstrates that the fundamentals remain sound, even as higher funding costs continue to affect the sector. The focus now is disciplined execution, liquidity preservation and positioning the Group for more sustainable future distributions.”
