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.