Botswana-based loan stock group Turnstar Holdings has reported a significant increase in profit at the end of the first-half-year period of its current financial year, which sent profits above the $5-million mark.
The 40.5-percent growth in profit from BWP41.83 million ($3.72 million) last year to BWP58.76 million ($5.23 million) made the board declare an interim dividend distribution of BWP0.09 ($0.008012) to shareholders.
Turnstar Holdings is a property loan stock group headquartered in Gaborone, the capital city of Botswana.
The group holds eight properties in Botswana, four in Tanzania and one in Dubai, which includes multi-residential estates, office buildings and premium retail shopping centers.
Gulaam Abdoola, a founding member and the managing director of the Botswana-based real estate group, holds a beneficial interest in the property holdings worth millions of dollars.
The boost in the group’s half-year earnings was supported by effective cost-management strategies coupled with a five-percent growth in revenue from BWP121.81 million ($10.84 million) in the first half of last year to BWp128.2 million ($11.42 million) in H1 2022.
In his statement to shareholders and equity market observers, Abdoola revealed that a strategic decision was made to grant substantial rental concessions to commercial tenants who could not operate during COVID-19 lockdowns. This caused rental revenues to increase substantially in the period.
He also noted that the group incurred a substantial foreign exchange loss as a result of the recent appreciation in the value of the dollar against the Botswana pula.
In line with its solid financial performance in the first half of its current financial year, shareholders are expected to pocket an interim dividend distribution that includes a debenture interest of BWP0.07919 ($0.007125) and an interim dividend of BWP0.01081 ($0.000891) per share payable on Nov. 30.
Turnstar Holdings remains one of the largest property loan groups in Bostwana, with a total assets value of BWP2.5 billion ($222.84 million).
Its asset portfolio includes multi-residential estates, office buildings and premium retail shopping centers such as Game City Shopping Mall in Gaborone, Nzano Shopping Center in Francistown and Mlimani City in Tanzania.
