Turnstar anticipates increased profit
Turnstar holdings anticipates increased profits by up to 40 percent this year as its rental revenues increased substantially compared to last year. The group announced that it expects its profit before tax to grow to P114, 3 million compared to P81.8 million recorded in the year ended January 2021. Turnstar Board of Directors stated that this, together with reductions in operational and finance costs are expected to increase the Profit before fair value adjustment and taxation by P 21.8million (21.4 percent ), from P 101.5 million for the year ended 31 January 2021, to P 123.2 million for the year ended 31 January 2022. “This is after an impairment charge of approximately United Arab Emirates, D23.6 million on the Group’s Dubai investment.” Despite the tough economic conditions caused by the Covid-19 pandemic, the property investment company experienced booming increase in profits. In its half year ended, the group profits increased by 41 percent (P17.85million) to P 61,018 million, compared to the P43, 167 million in 2020. The Group Managing Director, Gulaam Abdoola stated in the half year results that a strategic decision was made to grant substantial rental concessions to commercial tenants who could not operate during the lockdowns and this resulted in the substantial increase in profits. “As such, the rental revenues of the Group for the half year ended 31 July 2021, increased substantially, compared the corresponding half year ended 31 July 2020. Property analysts have reported that the economic stability in the property sector has a positive impact for the property companies with average residential properties rising by 11 percent to over P800 000 in 2021. Turnstar group has investments in Botswana, Tanzania and the United Arab Emirates. In Botswana, Turnstar owns seven properties with 265 active tenants and 96,730sqm total gross lettable area and a market value of P1.3 billion. The Tanzanian subsidiary, Mlimani Holdings Limited owns Mlimani City, a mall with 165 active tenants. In the United Arab Emirates (Dubai), the company operates Palazzo Venezia, a commercial property measuring 1,245sqm total gross lettable area.