*Revenue up 4% to P236.1m (FY2024: P227.0m)
PrimeTime, the BSE-listed property investment group, this week published its audited annual financial results for the year ended 31 August 2025.
The Group delivered a robust performance despite regional macroeconomic pressures, underscoring the strength of its portfolio, disciplined capital allocation and active asset management.
“Operating environments across our regional footprint remained challenging, but our disciplined capital strategy and focus on fundamentals enabled PrimeTime to deliver a resilient full-year performance,” company Director Dandy Kelly commented.
“High occupancy levels, stable contractual escalations and prudent debt management supported earnings quality and strengthened our balance sheet. The meaningful fair-value uplift achieved this year reinforces the underlying quality of our assets and positions the Group for long-term value creation.”
Chief Financial Officer, Alice Wellio-Moyo added: “Our funding structure remains sound following targeted capital repayments, debt consolidation and refinancing activities.
“The reduction in the Group’s weighted average cost of debt, together with the improvement in our loan-to-value ratio to 45%, demonstrates our continued commitment to disciplined capital management amid evolving liquidity conditions.”
Revenue growth and strong portfolio fundamentals
Group revenue increased 4% to P236.1 million, driven by consistently high occupancy levels, strong rental collections and contractual escalations across the portfolio. Recovery income grew particularly in Zambia, where elevated utility costs and power supply disruptions required higher pass-throughs to tenants.
A P79.4 million fair-value uplift, driven primarily by the Botswana portfolio, materially strengthened profitability. Profit before tax rose to P120.6 million (FY2024: P62.3 million). Basic and diluted earnings per linked unit increased by 115% from 18.72 thebe to 40.37 thebe respectively.
Net Asset Value increased 14% to P1.02 billion, supported by revaluation gains, debt amortisation and repayment, as well as the finalisation of the foreign-currency translation reserve reclassification following the Mauritius loan capitalisation.
Vacancy remained low at under 1%, reflecting the quality of the Group’s properties, tenant retention initiatives and favourable positioning in key commercial nodes.
Impact of one-off Corporate Action costs
As reported in the half-year, the Group incurred non-recurring advisory, governance and compliance costs of P10.4 million associated with the corporate action process. These elevated operating expenses for FY2025 but are not expected to recur.
Prudent capital management and ongoing funding support
PrimeTime maintained a strong balance sheet and a stable funding platform during the year under review, underpinned by continued progress on its deleveraging strategy. The loan-to-value ratio improved to 45% from 48% as the Group executed both scheduled and voluntary debt repayments, while the weighted average cost of debt reduced to 7.9% following favourable offshore rate movements and targeted refinancing initiatives.
During the year, PrimeTime also consolidated P221 million of borrowings into a Special Purpose Vehicle (SPV) structure, a step that has enhanced overall funding flexibility and strengthened liquidity management.
Revenue rose by 4% to P236.1 million, supported by consistently high occupancy levels, strong tenant retention and the benefit of contractual rental escalations.
Recovery income also grew meaningfully, largely due to the pass-through of higher operating costs, most notably in Zambia, where rising utility charges and ongoing electricity disruptions continued to affect the operating environment.
Together with stable rental activity across the portfolio, these factors contributed to the overall improvement in revenue.
Operating expenses increased during the year, reflecting normal inflationary and property-related cost pressures. The rise, however, was driven mainly by the one-off advisory, legal, governance and compliance costs associated with the corporate action undertaken during the year.
Finance costs decreased by 6%, supported by targeted capital repayments and refinancing initiatives across the portfolio. Zambia was the most significant contributor, with a 25% reduction in finance costs following continued amortisation of USD-denominated loans and lower average borrowings, due to an easing in USD interest rates.
South Africa and Botswana also contributed to the downward trend, and favourable rate movements across the Group’s offshore exposures further strengthened the overall reduction.
A fair-value uplift of P79.4 million was a major driver of the Group’s financial performance, helping to lift profit before tax to P120.6 million.
The Botswana portfolio accounted for the majority of the uplift, delivering a P89.2 million gain, partly offset by valuation movements in Zambia and South Africa.
As a result, total comprehensive income increased meaningfully year-on-year, reflecting the combined effect of stable operating fundamentals and the net fair-value gains achieved during the period.
Multi-market resilience underpins full-year results
Botswana, which accounts for around 66% of the portfolio value, delivered a steady operational performance despite a 1% decline in rental income, as well as a more constrained liquidity environment and an uptick in interest rates towards the end of the period under review. This was driven by a once-off rebasing on a major lease renewal with a key financial institution tenant (representing 9% of Botswana rental income), securing the tenancy for a further five years, and the impact of the planned hand back of two properties at the end of their ground leases.
Excluding the rebasing effect, underlying rental income would have increased by roughly 3%, reflecting the continued strength of the market. Vacancy remained exceptionally low at 0.7%, and the successful renewal of a key five-year lease provided additional visibility over future earnings.
In Zambia, representing 29% of the portfolio value, rental income grew by 16% as significantly improved recovery of utility costs helped offset the effects of ongoing economic pressures and electricity shortages. Vacancies rose modestly to 1.5%, but tenant demand remained broadly stable given the challenging operating environment.
South Africa, which makes up 6% of the portfolio value, produced another year of growth. Rental income increased by 7%, supported by tenant expansions and annual escalations. Vacancies held steady at 1.2%, demonstrating resilient demand from established occupiers, despite higher utility tariffs and softer retail conditions.
Across the portfolio, income remains well diversified, with 40% generated from regional retail chains, 30% from corporates and financial institutions, and 9% from government tenants.
This balanced mix continues to support the Group’s earnings stability across changing market conditions.
New developments, asset recycling and focus on resource-efficiency the main growth drivers
PrimeTime continued to advance its growth strategy during the year, with a deliberate focus on developments that enhance future earnings, disciplined capital recycling and investments that strengthen the resilience of the portfolio.
The next phase of the flagship Prime Plaza II precinct progressed meaningfully, with feasibility and design work now at an advanced stage. Strong early tenant interest, including commitments from a multinational occupier, has reinforced confidence in the long-term potential of this development and positions the Group to accelerate delivery of the next phase.
Alongside this progress, PrimeTime continued to reshape its portfolio through selective disposals, with P52.15 million in assets at book value designated as held for sale in the Botswana portfolio. These disposals are now moving through their respective processes, with proceeds being at a premium to the book value (P65.1 million) earmarked for further debt reduction and reinvestment into higher-yielding opportunities within the Group’s landbank. This approach ensures capital is continually redirected toward assets and developments that offer stronger, more sustainable returns while debt levels are managed downwards. Further disposals are under negotiation.
The Group also made tangible strides in strengthening energy security and sustainability across its operations. Planned solar installations in Zambia will help reduce exposure to electricity disruptions, while a programme of energy-efficiency upgrades is underway across selected properties. New developments are being designed around Green Star principles, and the adoption of green lease provisions is expanding in line with evolving market expectations.
Collectively, these initiatives support lower operating costs over time, build resilience for tenants and reinforce the Group’s commitment to responsible and future-focused property management.
Final distribution impacted by take-over defence
An interim interest distribution of 2.67 thebe per linked unit was declared for the four-month period ended 31 December 2024. No final distribution was declared for FY2025 due to the once-off corporate action costs incurred during the year.
Unitholders with outstanding interest payments are encouraged to contact the Transfer Secretaries.
Looking forward
PrimeTime enters the new financial year with a strengthened balance sheet, high-quality portfolio and well-progressed development pipeline.
While liquidity pressures and interest-rate shifts in Botswana present emerging risks, the Group remains focused on:
- Continued deleveraging
- Tenant retention and vacancy management
- Selective reinvestment into sustainable, high-yielding developments
- Leveraging Prime Plaza II to drive long-term income growth
Management and the Board are confident that the strategic actions undertaken in FY2025 lay a solid foundation for sustainable returns and enhanced stakeholder value.
