Rentals amassed by Turnstar Holdings Limited, the operators of the glamorous Game City Mall in Gaborone, reduced by approximately P12.28 million during the year that ended 31 January 2021, the Group has said.
The Turnstar Group consists of Turnstar Holdings Limited (Botswana), Island View (Proprietary) Limited (Botswana), Mlimani Holdings Limited (Tanzania), Turnstar Investments Limited (UAE) and Palazzo Venezia Holdings Limited (UAE). According to Turnstar, they collected rental income amounting to P257.7 million in the period under review, compared to P269.3 million of the prior year.
This is the Group that had offered a rent relief amounting to P12.2 million to its tenants in order to mitigate the effects of the COVID-19 pandemic.
On the other hand, Turnstar’s operational expenses increased by P4.1 million from P116.9 million in the prior year to P121 million in the period under review. The Group’s profit for the year amounts to P81.3 million, a P34.9 million decrease compared to P116.2 million of the prior year.
“The Governments of Botswana, Tanzania and Dubai implemented lockdowns and various restrictions to combat the spread of the COVID-19 pandemic,” Turnstar in its financial results. “These restrictions led to disruptions of trade resulting in rental rebates being granted by the Turnstar Group. Turnstar considers its tenants as partners in its business, and their existence and continuity are paramount in the success of Turnstar. A strategic decision was made to grant substantial rental concessions to our retail and commercial tenants who could not operate during the initial lockdown periods. The rentals revenues of the Group reduced by approximately P12.28m during the year under review.”
The Group noted that the US Dollar appreciated against the Botswana Pula during the year under review. This resulted in Turnstar having a net forex loss on a US$ loan for the year 31 January 2021 of P2.6 million, compared to a net forex gain of P10.44 million in the corresponding previous year end January 2020 when Turnstar had a corresponding US$ intercompany loan in Mlimani.
Botswana recorded substantial Fair Value Gains. Fair values are calculated on current rentals projected into the future on a discounted cash flow basis. They do not reflect the actual cost of the buildings and may change from year to year, depending on occupancy levels.
“Due to the vacancies in the commercial office space, and the reduction in conference centre income due to COVID, Mlimani Holdings has reported a Fair Value loss for the year,” Turnstar noted.