Prime Time profits shoot up

 

Property developer and Investment Company, Prime Time has recorded substantial increase in profit after tax to P128 million in its year ended August 2018.The group has also seen an increase in net market value boosted mainly by the US dollar currency gains across Zambia portfolio. The Zambian Kwacha has depreciated about 19.9 percent against the US Dollars this year.

The group has seen its profits shooting up by 80 percent from P28.2 million recorded last year. Commenting on the published results, PrimeTime Chairperson, Petronella Matumo said the group has also experienced strong tenant demand in Zambia. “The net Market value increments for the year are considerable and due largely to US dollar gains recognized across our Zambian portfolio,” said Matumo. 

By end of August, vacancies stood at an average of five percent across the portfolio against the three percent last year. “This reflects a solid performance given the volume of retail developments completed at the end of the financial year where it is typical that the anchor tenants and some other nationals are secured on opening, with the smaller line shops filling up once the centre has opened,” said Matumo

She said tenancy at two new retail centres in Zambia remains a focus for the property management team with Chirundu now close to 90 percent let but on a one -year rental guarantee from the developer. However, she said these centers would enhance the portfolio and provide solid income in the long term.

In Botswana, the group also saw increased market value. Tenancy of Pilane Crossing has settled and all the shops have been opened during the year including the extension of a drive through Kentucky Fried Chicken. Matumo said in Botswana the group looks forward to its second development at Setlhoa commencing.

“Several of our properties in Botswana are subject to ground leases and as their term shortens, the market value is adjusted accordingly. We are at advanced stages of negotiating a substantial extension at one of these and purchasing the freehold on another, both of which should be completed in the 2019 financial year.”