- Two projects to be developed this year
- Four more planned in 2025
- Portfolio value currently at P1.50bn
Listed real estate enterprise, The Far Property Company (FPC), is poised to enhance its portfolio with the addition of two new projects boasting superior rent yields by the conclusion of the current financial year.
FPC disclosed this information in its six-month financial results for the period ending on December 31, 2023.
Additionally, the company, currently boasting a portfolio value of P1.5 billion, outlined plans for four additional developments slated for completion in the upcoming financial year (2025). These projects are expected to bolster future growth opportunities and yields for the company.
Furthermore, FPC intends to fuel additional growth by leveraging its existing land bank for property development. The company remains steadfast in its commitment to acquiring yield-enhancing assets that facilitate consistent rental growth, thus diversifying its current portfolio for sustained expansion.
For the period under review, FPC revenue increased by 11 percent, from P75 million in the previous corresponding period, to P83 million.
Rent yield remained at a stable level of 11 percent while profit before income tax increased by 14 percent from P53.74 million to P61.43 million.
FPC asserts that it has a very healthy loan-to-asset value of below 20 percent.
Moreover, the company boasts a well-balanced portfolio by Gross Lettable Area (GLA).
In terms of GLA, FPC’s portfolio is 52 percent industrial, 40 percent commercial, and 8 percent residential.
Its portfolio is largely made up of premium tenants who are characterised as Grade A, constituting 78 percent of the total portfolio.
These include retail tenants with national and international brands.
Grade B tenants who are mostly local tenants and medium-sized businesses with well-established business operations, constitute 19 percent of the portfolio.
New start-up companies with small business operations who are in Grade C make up 3 percent of the FPC portfolio.
FPC, a pan-African enterprise, maintains a robust property portfolio, comprising 168 properties in Botswana, 18 in South Africa, and 2 in Zambia. Remarkably, the company achieves an impressive occupancy rate of 95 percent, indicating a minimal vacancy rate of just 5 percent within the real estate industry.
During the period under review, revenue breakdown by geographical location reveals that 86 percent of FPC’s revenue originated from Botswana, 12 percent from South Africa, and the remaining 2 percent from operations in Zambia.
