Real estate giant, FAR Property, one of Botswana’s premier real estate development and asset management firms, has reported impressive financial results for the year ending 30 June 2024.
The company’s revenue rose by 10 percent, reaching P168 million, up from P153 million in the previous year. This growth was matched by a 27 percent surge in profit before tax, which jumped from P136 million in 2023 to P173 million in 2024. Net income from operations also increased, rising 8 percent from P139 million to P151 million.
FPC has declared a distribution of 12.40 thebe per linked unit, comprising 12.29 thebe in interest and 0.11 thebe in dividends. However, the Board has opted to retain 50 percent of its profit to support the company’s future growth, focusing on expanding its land bank and property portfolio.
The company’s property portfolio remains robust, with a 10 percent increase in value to P1.62 billion across its 194 properties. Vacancy rates are among the industry’s lowest at below 6 percent, and rental yields have remained stable at 10 percent. Key financial metrics such as the loan-to-equity ratio (28 percent), loan-to-asset value (20 percent), and debtors-to-rental ratio (3.05 percent) are all within healthy limits. FPC’s current ratio also improved to 0.57, and its interest cover to EBITDA ratio remained strong, above five.
The portfolio is well-diversified, with 40 percent of its gross lettable area (GLA) dedicated to industrial properties, 53 percent to commercial spaces, and 7 percent to residential units. This distribution mirrors the company’s revenue streams, with 40 percent of revenue from industrial properties, 53 percent from commercial properties, and 7 percent from residential spaces. The tenant mix includes 78 percent Grade A tenants (established national and international brands), 19 percent Grade B tenants (local businesses and SMEs), and 3 percent Grade C tenants (small start-ups).
Geographically, 86 percent of FPC’s revenue comes from Botswana, 12 percent from South Africa, and 2 percent from Zambia, underscoring its strong presence in Southern Africa. Looking ahead, FPC is focused on continued growth, with five new projects in the pipeline, projected to yield improved rental returns. The company also plans to further develop its land bank and is exploring high-yield projects in both Botswana and Zambia, aiming to enhance the sustainability and profitability of its portfolio.
