The Far Property Company Limited
("The Company" or "FPC") Company No. BW00000942235
Incorporated in the Republic of Botswana on 29 June 2010 BSE share code: FPC
ABRIDGED AUDITED FINANCIAL RESULT
FOR THE YEAR ENDED 30 JUNE 2023
PROFIT BEFORE | NET INCOME | REVENUE | LOAN TO | RENT | ||
TAX | FROM OPERATIONS | ASSET VALUE | YIELD | |||
22% | 11% | 9% | 18% | 10% | ||
Abridged Consolidated Statement | Audited | Audited |
12 months ended | 12 months ended | |
of Comprehensive Income | ||
30 June, 2023 | 30 June, 2022 | |
P' 000 | P' 000 | |
Continuing operation | ||
Revenue | 153,792 | 141,400 |
Other income | 19,366 | 21,212 |
Operating expenses | (33,761) | (37,552) |
Operating profit | 139,397 | 125,060 |
Finance income | 952 | 8 |
Finance costs | (26,646) | (22,924) |
Net income from operations | 113,703 | 102,144 |
Foreign Exchange gain/(loss) | (8,067) | (2,256) |
Investment property fair value adjustment | 30,752 | 12,019 |
Profit before income tax | 136,388 | 111,907 |
Income tax credit / (expense) | (11,002) | 4,559 |
Profit from Continuing Operations | ||
125,386 | 116,466 | |
Discontinued Operation | - | - |
Profit for the year attributable to linked unitholders | 125,386 | 116,466 |
Other Comprehensive income, net of tax items | - | - |
Items that may be subsequently reclassified to profit or loss | - | - |
Exchange differences on translating foreign operations | (53) | 13,212 |
Total comprehensive income for the year attributable to | ||
125,333 | 129,678 | |
linked unitholders | ||
Profit attributable to: | ||
Owners of the Parent: | ||
From continuing operations | 125,386 | 116,466 |
From discontinued operations | - | - |
125,386 | 116,466 |
Abridged Consolidated | Stated | Foreign | Retained | Total | ||
Capital | currency | income | Equity | |||
Statement of Changes | translation | |||||
In Equity | reserve | |||||
P' 000 | P' 000 | P' 000 | P' 000 | |||
Balance at 1 July 2021 | 506,803 | (43,037) | 501,528 | 965,294 | ||
Profit for the year | - | - | 116,466 | 116,466 | ||
Other comprehensive income | - | 13,212 | - | 13,212 | ||
Total comprehensive income for the year | - | 13,212 | 116,466 | 129,678 | ||
Issue of shares | 30,301 | - | - | 30,301 | ||
Distribution declared | - | - | (84,701) | (84,701) | ||
Balance at 30 June 2022 (Audited) | 537,104 | (29,825) | 533,293 | 1,040,572 | ||
Balance at 1 July 2022 | 537,104 | (29,825) | 533,293 | 1,040,572 | ||
Profit for the year | - | - | 125,386 | 125,386 | ||
Other comprehensive income | - | ( 53) | - | (53) | ||
Total comprehensive income for the year | - | ( 53) | 125,386 | 125,333 | ||
Issue of linked Units | 33,042 | - | - | 33,042 | ||
Distribution declared | - | - | (55,944) | (55,944) | ||
Balance at 30 June 2023 (Audited) | 570,146 | (29,878) | 602,735 | 1,143,003 | ||
Abridged Consolidated Statement of | Audited | Audited | ||||
12 months ended | 12 months ended | |||||
Cash Flows | ||||||
30 June, 2023 | 30 June, 2022 | |||||
P' 000 | P' 000 | |||||
Net cash generated from / (used in) operating activities | 134,335 | 122,681 |
Performance Trend and
Commentary Result
- Profit before tax increased by 22%
- Rent yield remained at a stable level of 10%
- Revenue increased by 9%
- Very healthy loan to asset value of below 18%
Highlights for the year ended 30 June 2023
- Revenue increased by 9% from P141 Million (FY 2022) to P153 Million
- Profit before Tax increased by 22% from P111 Million (FY 2022) to P136 Million
- Net income from operation increased by 11% from P102 Million (FY 2022) to P113 Million
- A distribution of 11.80 thebe per linked unit for the year ended has been declared
- Rent yield remained at a stable level of 10%
- The loan to asset ratio remained at a stable level of 18%.
Basis of Preparation and
Accounting Policies
The abridged group financial result, which has been reviewed by the Company's external auditors, have been extracted from the audited consolidated financial statements. The accounting policies applied in the preparation of the audited consolidated financial statements from which the abridged group financial result was derived are consistent with those accounting policies applied in the preparation of the previous year's consolidated financial statements except for the adoption of new accounting standards effective from the current financial year which did not have a material impact on the group.
Weighted average Linked units in issue | 468,596,584 | 455,320,649 | Net cash flow used in investing activities | (39,142) | (40,200) |
Basic earnings per linked unit attributable to linked | Net cash generated from/(used in) financing activities | (105,210) | (33,966) | ||
unitholders (thebe) | 26.76 | 25.58 | |||
(10,017) | 48,515 | ||||
Headline earnings per linked unit attributable to linked | Net Movement in cash and cash equivalents | ||||
unitholders (thebe) | 26.92 | 26.09 | |||
Distribution per linked units (thebe) | 11.80 | 18.40 | Cash and cash equivalents at beginning of period | 32,714 | (16,281) |
The consolidated financial statements for the year ended 30 June 2023 have been audited by Grant Thornton. Any investment decisions by investors and/or unitholders should be based on consideration of the complete set of the consolidated financial statements which is available for inspection at the offices of FPC.
The financial information is presented in Botswana Pula, which is
considered the functional currency.
Abridged Consolidated Statement | Audited | Audited |
As at 30 June | As at 30 June | |
of Financial Position | ||
2023 | 2022 | |
P' 000 | P'000 | |
Assets | ||
Non-current Assets | ||
Investment property | 1,473,968 | 1,416,647 |
Property, plant and equipment | 5,449 | 1,320 |
Trade and other receivables | 3,180 | - |
Operating lease asset | 37,448 | 33,779 |
Deferred income tax assets | 10,305 | 7,873 |
1,530,350 | 1,459,619 | |
Current Assets | ||
Related party receivables | 8,758 | 5,405 |
Operating lease asset | 4,025 | 6,320 |
Trade and other receivables | 14,185 | 14,448 |
Cash and cash equivalents | 22,529 | 32,714 |
49,497 | 58,887 | |
Total Assets | 1,579,847 | 1,518,506 |
Equity and Liabilities | ||
Effects of exchange rate changes on cash and cash Equivalent | (385) | (449) |
Effects of Exchange rates on translation of foreign Operations | 217 | 929 |
Cash and cash equivalents at end of period | 22,529 | 32,714 |
Property Portfolio
Well balanced portfolio by GLA
52% | Industrial | |
38% | Commercial | |
GLA by | 10% Residential |
Usage | • Backed by long term lease. |
• Vacancy rate negligible. | |
• Value of portfolio is P1.46 Billion. | |
• Land bank available for future growth. |
Distribution
Distribution no 8 amounting to 11.80 thebe, comprising 11.69 thebe interest and 0.11 thebe dividend, per linked unit for the year ended 30 June 2023. This distribution was declared on 27 June 2023 and is payable on 10th November 2023, the ex-dividend date is 01 November 2023 and record date for distribution is 03 November 2023.
The Board has offered 50% payout to support Group's Continued Growth and to focus on expanding the business and further developing existing and potentially new land bank that will contribute to the growth of the overall business and property portfolio.
Prospects & Strategy
- Eight new projects with better rental yield is started and will be in the Portfolio.
- Better prospects to add and develop more properties with the existing land bank.
- Continued focus on better and stable yield through diversification of current portfolio.
Equity Attributable to Equity Holders of Parent | ||
Stated capital | 570,146 | 537,104 |
Foreign currency translation reserve | (29,878) | (29,825) |
Retained income | 602,735 | 533,293 |
1,143,003 | 1,040,572 | |
Liabilities | ||
Non-Current Liabilities | ||
Borrowings | 258,579 | 250,655 |
Deferred income tax liabilities | 60,813 | 56,674 |
Lease Liabilities | 5,786 | 2,938 |
325,178 | 310,267 | |
Current Liabilities | ||
Borrowings | 26,734 | 63,851 |
Trade and other payables | 21,680 | 18,409 |
Distribution payable | 55,944 | 84,702 |
Current tax payable | 7,161 | 517 |
Lease Liabilities | 147 | 188 |
111,666 | 167,667 | |
Total Liabilities | 436,844 | 477,934 |
Total Equity and Liabilities | 1,579,847 | 1,518,506 |
Grade Classification | |||
Grade - A: Premium Tenant including | |||
78% Grade A | Retail Tenant with National and | ||
Tenants by | International Brands. | ||
19% Grade B | |||
Grade | Grade - B: | Local Tenants & Medium Sized | |
3% Grade C | Business with well- established | ||
business operations. | |||
Grade - C: | New Start-up Companies with | ||
Small Business Operations. |
Revenue by | ||||
Location | ||||
Revenue by | 41% | Industrial | 86% | Botswana |
52% | Commercial | 12% | South Africa | |
Usage | ||||
7% | Residential | |||
2% | Zambia | |||
Notes to the Consolidated and Separate Financial Statements for the year ended 30 June 2023
Botswana | South Africa | Zambia | |||||||||||
Group | Residential | Commercial | Industrial | Other | Residential | Commercial | Industrial | Other | Residential | Commercial | Industrial | Other | Total |
P '000 | P '000 | P '000 | P '000 | P '000 | P '000 | P '000 | P '000 | P '000 | P '000 | P '000 | P '000 | ||
Revenue | 11,238 | 60,825 | 59,169 | 1,897 | 96 | 14,899 | 3,383 | (553) | - | 2,833 | - | 5 | 153,792 |
Other income | 933 | 7,269 | 4,222 | 976 | - | 6,535 | 341 | (919) | - | 9 | - | - | 19,366 |
Operating expenses | (1,736) | (7,627) | (4,502) | (10,298) | (95) | ( 5,915) | (1,255) | (1,785) | - | (548) | - | - | (33,761) |
Finance income | - | - | - | 12,301 | - | - | - | (11,349) | - | - | - | - | 952 |
Finance costs | - | - | - | (23,222) | - | - | - | (3,586) | - | - | - | 162 | (26,646) |
Foreign exchange gain/(loss) | - | - | - | 290 | - | - | - | (7,972) | - | - | - | (385) | (8,067) |
Investment property fair value adjustment | 1,769 | 14,622 | 6,410 | - | 77 | 3,327 | 1,340 | - | - | 3,207 | - | - | 30,752 |
Income tax | - | (11,748) | - | - | 1,165 | - | - | - | - | (419) | (11,002) | ||
12,204 | 75,089 | 65,299 | (29,804) | 78 | 18,846 | 4,974 | (26,164) | - | 5,501 | - | (637) | 125,386 | |
Segment assets | 150,570 | 640,407 | 505,168 | 40,456 | 1,642 | 106,929 | 71,575 | 18,178 | - | 44,922 | - | - | 1,579,847 |
Reconciliation to total assets as reported in | |||||||||||||
the statement of financial position | |||||||||||||
Property, plant and equipment | - | - | - | 5,325 | - | - | - | 124 | - | - | - | - | 5,449 |
Investment property | 150,069 | 612,958 | 492,435 | - | 1,642 | 106,735 | 71,466 | - | - | 38,663 | - | - | 1,473,968 |
Related party receivables | - | - | - | 8,758 | - | - | - | - | - | - | - | - | 8,758 |
Operating lease asset | 501 | 27,449 | 12,733 | - | - | 194 | 109 | - | - | 487 | - | - | 41,473 |
Trade and other receivables | - | - | - | 11,535 | - | - | - | 5,430 | - | 400 | - | - | 17,365 |
Cash and cash equivalents | - | - | - | 13,366 | - | - | - | 3,791 | - | 5,372 | - | - | 22,529 |
Deferred income tax assets | - | - | - | 1,472 | - | - | - | 8,833 | - | - | - | - | 10,305 |
Total assets as reported in the statement | |||||||||||||
150,570 | 640,407 | 505,168 | 40,456 | 1,642 | 106,929 | 71,575 | 18,178 | - | 44,922 | - | - | 1,579,847 | |
of financial position | |||||||||||||
Total liabilities excluding disposal group | |||||||||||||
- | - | - | 380,893 | - | - | 54,332 | - | - | - | - | 1,619 | 436,844 | |
For and on behalf of the board
Vidya Sanooj | Ranjith Priyalal De Silva |
Director | Director |
14 September 2023 |
Transfer Secretaries:
Grant Thornton Business Services (Pty) Ltd Plot 50370 Acumen Park, Gaborone, Botswana. P.O. Box 1157, Gaborone, Botswana).
Company Secretaries / Registered office:
BP Consulting Services (Pty) Limited
Plot 50370, Acumen Park
Fairgrounds Office Park, Gaborone, Botswana
Directors:
Reetsang Willie Mokgatlhe I Ramachandran Ottapathu I Faizel lsmail I Vidya Sanooj I Ranjith Priyalal De Silva I Rajeshkumar Jayrajh I Gobusamang Dempsey Keebine
Auditor:
Grant Thornton Botswana
Acumen Park, Plot 50370, Fairgrounds, Gaborone
P. O. Box 1157, Gaborone, Botswana
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Far Property Company Ltd. published this content on 14 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 September 2023 15:06:02 UTC.