Property giant defies economic squeeze with P22.7 million score
PrimeTime has delivered a solid financial and operational performance despite operating under tough economic conditions and ongoing corporate restructuring, with a P22.7 million profit.
For the period ending February 2025, the group reported revenue of P117.5 million for the first half of its financial year, an increase of 6% on the comparative prior year’s revenue of P111.2 million.
However, one-off costs relating to ongoing corporate action, inflationary pressures and higher property-related expenses impacted on profitability, which went down by 9% to P22.7 million compared to P24.8 million in the comparative six months.
Despite the dip in profit, PrimeTime celebrated several key wins including a less than 1% portfolio vacancy rate and 6% increase in rental income.
According to the group director Sandy Kelly, a disciplined approach towards capital allocation and focus on property fundamentals enabled significant progress in executing the group’s strategic priorities and positioning it to sustainably unlock stakeholder value in years ahead.
“We delivered a solid set of results by focusing on the key drivers under our control, including revenue growth, tenant retention and vacancy reduction, and the amortisation of debt. These initiatives were further bolstered by the quality of our portfolio, securing strong occupancy levels and contractual escalations,” he said.
The impact of rising operating expenses was partially offset by a 7% reduction in finance costs, which declined to P35.7 million from P38.2 million.
This reduction was achieved through successful debt restructuring, targeted repayments and the benefit of lower interest rates during the period.
Botswana, which represents 64% of the portfolio, recorded a 2% increase in rental income, primarily driven by contractual escalations. The successful renewal of Absa’s head office lease, contributed 9% of Botswana’s rental income, securing a further five-year term, reinforcing income stability.
While Hillside Mall in Lobatse was handed back to the freeholder as scheduled following the expiry of its ground lease, PrimeTime has maintained its exposure in the market with Lobatse Junction, which has become the area’s dominant retail facility and continues to perform well with increasing income and capital value each year since completion.
The Group’s vacancy rate in Botswana improved to 0.3%, down from 0.7% in August 2024.
Outside Botswana, Zambia accounts for 31% of the portfolio while South Africa, represents 5%.
The group’s portfolio’s income distribution comprises of 30% from corporate and financial institutions, 40% from regional retail chains and 9% from government tenants.
