CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2023
Debenture interest per linked unit (thebe)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2023
Continuing Operations Revenue
Contractual revenue
Straight line lease rental adjustment Operating cost recoveries
Other income
Movement in credit loss allowances Other non operating gains
Property related expenses Administrative expenses Operating Profit Finance Income Finance costs
Gain on disposal of equity accounted investment Share of profit from associate
Profit before fair value adjustment
Fair value adjustment of investment properties As per valuation
Straight line lease adjustment Profit before tax
Taxation
Profit from continuing operations Profit from discontinued operations
Total comprehensive income for the year
Total comprehensive income attributable to: Owners of the Company (date acquired 04/10/2023) Non-controlling interests
Number of linked units in issue at end of the year Weighted average number of linked units in issue Earnings per linked unit (thebe)
Earnings per linked unit is calculated based on the average number of linked units in issue and total comprehensive income for the year, adjustedby the taxation on debenture interest credited to thestatement of changes in equity of: Distribution per linked unit (thebe)
Dividends per linked unit (thebe)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023
ASSETS Non-current assets Investment properties Operating lease asset Right of use asset Investment in associates Investment in subsidiary Goodwill
Loan to associate Investments at fair value Property, plant & equipment Deferred tax
Deferred taxation recoverable - related party Total non-current assets
Current assets
Taxation refundable
Trade and other receivables Cash and cash equivalents
Non-current assets held for sale Total current assets
Total Assets
EQUITY AND LIABILITIES Capital and Reserves Stated capital Debentures - linked units Retained income
Equity attributable to owners of the parent Non-controlling interests
Total Capital and Reserves
Liabilities
Non- Current Liabilities Long term borrowings Deferred taxation Lease liability
Total Non- Current Liabilities
Current Liabilities
Debenture interest and dividend payable Trade and other payables
Current portion of borrowings Current portion of lease liability Total Current Liabilities
Total Equity and Liabilities
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2023
Balance at 01 July 2022
Total profit and comprehensive income for the year Dividends declared
Debenture interest declared
Taxation attributable to debenture interest Balance at 31 December 2022
Total profit and comprehensive income for the year Dividends declared
Debenture interest declared
Taxation attributable to debenture interest Balance at 30 June 2023
Equity attributable to non-controlling Interest Total profit and comprehensive income for the year attributable to owners of the company
Total profit and comprehensive income for the year attributable to noncontrolling interests Distribution declared - Subsidiary Dividends declared
Debenture interest declared
Taxation attributable to debenture interest Balance at 31 December 2023
GROUP UNAUDITED 6 months to Dec-2023 | COMPANY UNAUDITED 6 months to Dec-2023 | COMPANY UNAUDITED 6 months to Dec-2022 | COMPANY AUDITED 12 months to Jun-2023 |
P 76,511,094 | P 53,596,257 | P 50,185,445 | P 102,146,703 |
71,062,494 632,561 4,816,040 | 52,187,596 (605,470) 2,014,132 | 47,987,296 548,888 1,649,262 | 98,731,227 59,457 3,356,019 |
391,580 (821,769) (885,675) (9,124,772) (19,449,710) | 82,939 (821,769) (885,675) (3,092,293) (18,278,235) | 5,167,329 1,092,215 10,519 (5,314,019) (14,660,169) | 1,612,156 1,508,589 10,897,813 (9,821,667) (31,889,850) |
46,620,749 4,294,745 (22,411,415) 6,947,948 8,143,952 | 30,601,225 10,220,018 (19,796,754) 6,947,948 8,143,952 | 36,481,320 9,391,610 (17,314,338) - 13,796,362 | 74,453,744 20,734,401 (34,476,270) - 12,509,443 |
43,595,978 28,421,710 | 36,116,388 28,421,710 | 42,354,954 7,311,378 | 73,221,318 46,097,737 |
27,816,240 605,470 | 27,816,240 605,470 | 7,860,266 (548,888) | 46,157,194 (59,457) |
72,017,688 4,007,185 | 64,538,098 3,366,443 | 49,666,332 (9,899,709) | 119,319,055 (18,136,185) |
76,024,874 4,071,975 | 67,904,540 4,071,975 | 39,766,623 5,413,411 | 101,182,870 9,118,449 |
80,096,849 | 71,976,515 | 45,180,033 | 110,301,319 |
74,408,511 5,688,338 | 280,000,000 280,000,000 27.70 | 280,000,000 280,000,000 18.08 | 280,000,000 280,000,000 43.72 |
80,096,849 | |||
280,000,000 280,000,000 30.60 | |||
85,676,049 | 77,555,715 | 50,621,038 | 122,397,799 |
9.11 | 9.11 | 9.11 | 19.74 |
0.05 9.06 | 0.05 9.06 | 0.05 9.06 | 0.10 19.64 |
GROUP UNAUDITED Dec-2023 P | COMPANY UNAUDITED Dec-2023 P | COMPANY UNAUDITED Dec-2022 P | COMPANY AUDITED Jun-2023 P |
1,753,847,848 34,672,649 3,533,330 57,308,136 - 3,986,858 100,427,891 6,250,000 4,382,288 10,271,605 3,136,699 | 998,011,403 20,065,219 3,533,330 57,308,136 340,322,482 - 100,427,891 6,250,000 1,308,488 10,271,605 3,136,699 | 914,837,710 21,052,291 399,599 238,540,392 - - 94,288,121 6,250,000 1,699,383 13,475,936 3,205,026 | 967,983,900 20,716,721 98,348 234,624,422 - - 99,224,484 6,250,000 1,607,628 12,843,591 3,200,048 |
1,977,817,304 | 1,540,635,252 | 1,293,748,458 | 1,346,549,142 |
4,038,102 16,110,748 94,132,784 | 3,814,191 5,496,403 78,375,203 | 2,050,805 5,989,945 63,811,078 | 2,992,181 6,091,038 66,797,614 |
114,281,634 42,640,000 | 87,685,797 42,640,000 | 71,851,828 103,900,000 | 75,880,833 96,500,000 |
156,921,634 | 130,325,797 | 175,751,828 | 172,380,833 |
2,134,738,938 | 1,670,961,049 | 1,469,500,286 | 1,518,929,975 |
2,718,884 405,113,547 557,422,528 | 2,718,884 405,113,547 557,941,620 | 2,718,884 405,113,547 464,011,339 | 2,718,884 405,113,547 505,885,904 |
965,254,958 245,300,036 | 965,774,051 - | 871,843,770 - | 913,718,335 - |
1,210,554,996 | 965,774,051 | 871,843,770 | 913,718,335 |
724,808,345 128,945,897 3,024,480 | 589,661,743 58,045,618 3,024,480 | 477,969,166 68,544,723 - | 476,346,426 69,626,596 - |
856,778,721 | 650,731,841 | 546,513,889 | 545,973,022 |
25,500,000 35,373,118 5,948,054 584,050 | 25,500,000 22,423,054 5,948,054 584,050 | 25,500,000 19,992,098 5,153,503 497,027 | 29,764,000 24,111,238 5,237,180 126,200 |
67,405,222 | 54,455,158 | 51,142,628 | 59,238,618 |
2,134,738,938 | 1,670,961,049 | 1,469,500,286 | 1,518,929,975 |
Stated capital P | Debentures P | Retained Income P | Non-controlling Interest P | Total P |
2,718,884 | 405,113,547 | 438,752,106 | - | 846,584,537 |
- - - - | - - - - | 45,180,033 (140,000) (25,360,000) 5,579,200 | - - - - | 45,180,033 (140,000) (25,360,000) 5,579,200 |
2,718,884 | 405,113,547 | 464,011,339 | - | 871,843,770 |
- - - - | - - - - | 65,121,280 (140,000) (29,624,000) 6,517,280 | - - - - | 65,121,280 (140,000) (29,624,000) 6,517,280 |
2,718,884 | 405,113,547 | 505,885,904 | - | 913,718,335 |
- - - - - - - | - - - - - - - | - 74,408,511 - (2,951,087) (140,000) (25,360,000) 5,579,200 | 245,660,611 - 5,688,338 (6,048,913) - - - | 245,660,611 74,408,511 5,688,338 (9,000,000) (140,000) (25,360,000) 5,579,200 |
2,718,884 | 405,113,547 | 557,422,527 | 245,300,036 | 1,210,554,996 |
Cash flows from operating activities Profit before taxation
Profit/(loss) before taxation from discontinued operationsAdjustments for:
Fair value adjustment of investment properties Gain on disposal of equity accounted investment Share of profit from associate
Loss/(profit) on sale of plant & equipment Loss/(gain) on investment property Finance costs
Finance income Depreciation expense
Movement in credit loss allowances Movements in operating lease assets
Operating income before working capital changes
Working capital changes
(Increase)/decrease in trade and other receivables Increase/(decrease) in trade and other payables Taxation paid
Net cash generated from operating activitiesCash flows (used in)/from investing activities Additions to investment properties
Proceeds from sale of investment property Distribution from associate
Investment in associate Investment in subsidiary Cash and bank at acquisition Other receivable
Finance income
Acquisition of property, plant & equipment Loan to associate
Net cash used in investing activities
Cash flows used in financing activities Net movement in borrowings
New borrowings
Finance costs Dividends paid Debenture interest paid Payment on lease liability
Net cash generated from/(used in) financing activitiesNet increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the period
SEGMENTAL REPORTING
CONSOLIDATED SEGMENTAL STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2023 - UNAUDITED
Segment revenue
Other income
Movement in credit loss allowance Other non operating losses Property related expenses Administrative expenses Operating profit Finance income Finance costs
Gain on disposal of equity accounted investment Share of profit from associate
Fair value gain on investment property net of adjustment resulting from straight lining Tax expense
Profit from continuing operations Discontinued operations
Profit from discontinued operations Profit for the period
SEGMENTAL STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 31 DECEMBER 2023 - UNAUDITED
Segment revenue
Other income
Movement in credit loss allowance Other non operating losses Property related expenses Administrative expenses Operating profit Finance income Finance costs
Gain on disposal of equity accounted investment Share of profit from associate
Fair value gain on investment property net of adjustment resulting from straight lining Tax expense
Profit from continuing operations Discontinued operations
Profit from discontinued operations Profit for the period
SEGMENTAL STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 31 DECEMBER 2022 - UNAUDITED
Segment revenue
Other income
Movement in credit loss allowance Other non operating losses Property related expenses Administrative expenses Operating profit Finance income Finance costs
Dividends per linked unit (thebe)
Fair value gain on investment property net of adjustment resulting from straight lining Tax expense
Profit from continuing operations Discontinued operations
Profit from discontinued operations Profit for the period
CONSOLIDATED SEGMENTAL STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023 - UNAUDITED
Investment property including operating lease asset Non-current assets held for sale
Other assets
Total Assets
31 DECEMBER 2022 - UNAUDITED
Investment property including operating lease asset Non-current assets held for sale
Other assets
Total Assets
30 JUNE 2023 - AUDITED
Investment property including operating lease asset Non-current assets held for sale
GROUP UNAUDITED 6 months to Dec-2023 P | COMPANY UNAUDITED 6 months to Dec-2023 P | COMPANY UNAUDITED 6 months to Dec-2022 P | COMPANY AUDITED 12 months to Jun-2023 P |
72,017,688 4,071,975 (28,421,710) (6,947,948) (6,637,548) - (2,814,325) 22,411,415 (4,294,744) 601,257 821,769 651,503 | 64,538,098 4,071,975 (28,421,710) (6,947,948) (6,637,548) - 2,814,325) 19,796,754 (10,220,018) 758,785 821,769 651,503 | 49,666,332 5,413,411 (7,664,394) (7,664,394) (13,796,362) 3,161 - 17,336,386 (9,391,610) 672,880 (1,092,215) (465,871) | 119,319,055 9,118,449 (46,268,986) (46,268,986) (12,509,443) 35,722 - 34,476,270 (20,734,401) 1,372,579 (1,508,589) (164,240) |
51,459,333 (1,980,936) 1,330,787 (815,005) | 35,597,336 (227,134) (1,688,184) (822,010) | 40,681,717 28,902,361 (8,140,603) (139,214) | 83,136,416 2,597,271 (3,829,492) (1,080,590) |
49,994,179 | 32,860,009 | 61,304,261 | 80,823,605 |
(1,911,926) 53,000,000 1,506,404 65,217 (149,485,917) 12,078,221 - 4,294,745 (1,691,539) (1,203,407) | (1,559,759) 53,000,000 1,506,404 65,217 (149,485,917) - - 10,220,018 (132,137) (1,203,407) | (7,709,734) - 6,090 (7,663,384) - - - 9,391,610 (928,210) (94,288,121) | (14,817,394) - 3,080,445 (8,108,689) - - 26,620,370 20,734,401 (1,267,464) (99,224,484) |
(83,348,202) | (87,589,581) | (101,191,748) | (72,982,815) |
(6,099,809) 120,126,000 (22,411,415) (148,999) (30,391,988) (384,596) | (6,099,809) 120,126,000 (19,796,754) (140,000) (27,397,677) (384,596) | 7,004,516 - (17,314,338) (140,000) (27,752,030) (373,239) | (2,534,548) 8,000,000 (34,476,270) (280,000) (53,304,000) (722,018) |
60,689,193 | 66,307,164 | (38,575,091) | (83,316,836) |
27,335,170 66,797,614 | 11,577,589 66,797,614 | (78,462,582) 142,273,660 | (75,476,046) 142,273,660 |
94,132,784 | 78,375,203 | 63,811,078 | 66,797,614 |
Other assets
Total Assets
Corporate | Commercial | Industrial | Residential | Total |
P | & Retail P | P | P | P |
- 21,039 (821,769) (885,675) (884,472) (17,460,879) | 33,365,477 319,355 - - (7,144,399) (1,278,884) | 43,145,618 51,186 - - (1,095,901) (709,947) | - - - - - - | 76,511,094 391,580 (821,769) (885,675) (9,124,772) (19,449,710) |
(20,031,756) 4,223,327 (13,319,082) 6,947,948 8,143,952 - 4,007,186 | 25,261,549 71,418 (7,800,263) - - 1,429,557 - | 41,390,956 - (1,292,070) - - 26,992,153 - | - - - - - - - | 46,620,749 4,294,745 (22,411,415) 6,947,948 8,143,952 28,421,710 4,007,186 |
(10,028,426) - | 18,962,261 2,323,516 | 67,091,039 - | - 1,748,459 | 76,024,874 4,071,975 |
(10,028,426) | 21,285,777 | 67,091,039 | 1,748,459 | 80,096,849 |
- 21,039 (821,769) (885,675) (884,472) (17,460,879) | 10,450,640 10,714 - - (1,111,920) (107,409) | 43,145,618 51,186 - - (1,095,901) (709,947) | - - - - - - | 53,596,257 82,939 (821,769) (885,675) (3,092,293) (18,278,235) |
(20,031,756) 10,220,018 (13,319,082) 6,947,948 8,143,952 - 3,366,443 | 9,242,025 - (5,185,602) - 1,429,557 - | 41,390,956 - (1,292,070) - 26,992,153 - | - - - - - - | 30,601,225 10,220,018 (19,796,754) 6,947,948 8,143,952 28,421,710 3,366,443 |
(4,672,479) - | 5,485,980 2,323,516 | 67,091,039 - | - 1,748,459 | 67,904,540 4,071,975 |
(4,672,479) | 7,809,496 | 67,091,039 | 1,748,459 | 71,976,515 |
- 5,130,929 1,092,215 10,519 (437,754) (13,998,160) | 9,701,068 16,600 - - (1,051,546) (134,673) | 40,484,377 19,800 - - (3,824,719) (527,336) | - - - - - - | 50,185,445 5,167,329 1,092,215 10,519 (5,314,019) (14,660,169) |
(8,202,251) 9,391,610 (10,774,935) 13,796,362 - (9,899,709) | 8,531,449 - (5,242,275) - 4,114,551 - | 36,152,123 - (1,297,128) - 3,196,827 - | - - - - - - | 36,481,320 9,391,610 (17,314,339) 13,796,362 7,311,378 (9,899,709) |
(5,688,923) - | 7,403,724 3,103,179 | 38,051,822 543,375 | - 1,766,857 | 39,766,623 5,413,411 |
(5,688,923) | 10,506,902 | 38,595,197 | 1,766,857 | 45,180,033 |
- - 276,061,353 | 990,451,044 - 20,099,651 | 798,069,453 - 6,913,770 | - 42,718,948 424,719 | 1,788,520,497 42,718,948 303,499,493 |
276,061,353 | 1,010,550,695 | 804,983,223 | 43,143,667 | 2,134,738,938 |
- - 419,898,509 | 214,950,000 49,300,000 2,419,437 | 720,940,001 7,400,000 6,943,272 | - 47,200,000 449,067 | 935,890,001 103,900,000 429,710,284 |
419,898,509 | 266,669,437 | 735,283,273 | 47,649,067 | 1,469,500,286 |
- - 431,157,855 | 223,847,133 49,300,000 507,771 | 764,853,488 - 1,962,155 | - 47,200,000 101,573 | 988,700,621 96,500,000 433,729,354 |
431,157,855 | 273,654,904 | 766,815,643 | 47,301,573 | 1,518,929,975 |
1. OPERATIONAL OVERVIEW
Sectoral Spread 31 December 2022 *
In line with International Financial Reporting Standards (IFRS), we are proud to present our first set of 3.9%group financial statements which comprise of the Company and Group consolidated results. It must be
noted that in the prior year, LLR did not prepare Consolidated Financial Statements and therefore for 3.7%comparability, the focus of the commentry is on the company accounts of December 2023 and December 2022.
We are pleased to announce that during the period under review, our portfolio continued to demonstrate strong performance, with high occupancy rates of 99.15% as at 31 December 2023, an improvement from the previous year's 96.97%. The Company strives to give its shareholders security of income and in efforts to do so, we are proud to have signed a longterm lease (10 years) with one of our new tenants post
year-end. We expect this, together with other leases that are up for renewal, to improve our lease expiry profile from the current level of 3.01years.
As a result of the above as well as the Company's enhanced collection efforts, monthly collection rates have averaged above 100%, including arrears thus maintaining a healthy cash position and arrears within acceptable levels.
In October 2023, the Company acquired an additional 25% shareholding in JTTM Properties (Proprietary) Limited (JTTM), the holding company of Railpark Mall, which resulted in JTTM becoming a subsidiary of the Company at a shareholding of 57.79%. This has significantly uplifted the value of our investment portfolio from the prior year's P1.4 billion to close at P1.6 billion as at 31 December 2023. As a result of this, at group level, the investment portfolio value increased from P1.5 billion to P2.0 billion.
2. FINANCIAL PERFORMANCE
At a group level, our revenue closed the six months period at P77 million, a fair value gain of P28 million and profit before tax from continuing operations at P72 million, this is mainly due to the consolidation of the Railpark Mall results for the post acquisition period October 2023 to December 2023. The Group also realised a gain on the disposal of equity accounted investment of P6.9 million at the time of acquisition of the additional stake in JTTM.
Strong performance was recorded at a company level with profit before tax from continuing operations up 30% year-on-year. Revenue from continuing operations increased by 9% driven by average annual lease escalations of 6-7%.
In the prior year, the company experienced foreign exchange gains on the Orbit Africa Limited (OAL) (our property investment in Kenya) shareholder loan which was once off, thus resulting in a significant drop in other operating income year-on-year. Due to a significant increase in the cost of funding at both OAL and tenant level in Kenya since the time of investment in July 2022 to date, this has adversely impacted the performance of OAL, thereby resulting in cashflow challenges. We are currently reviewing our position on OAL as part of our ongoing investment performance monitoring process.
Finance income increased on the back of strong performance from the investment in associates, coupled with efficient cash management strategies. Finance costs increased by 14%, driven by the increase in the bank loan by circa P120 million which was utilised to fund the acquisition of an additional 25% stake in JTTM in October 2023. Fair value gains increased significantly on the back of refurbishments that were done in the prior year as these were netted off against the gross revaluations on investment property.
3. DISTRIBUTION
Unit holders are advised that the Board of Directors declared an interim distribution of 9.11 thebe per linked unit on 25 March 2024 in respect of the half year period to 31 December 2023, comprising of a dividend of 0.05 thebe and debenture interest of 9.06 thebe per linked unit. The declared distribution will be paid to linked unit holders registered in the books of the company at the close of business on 15th April 2024. The ex-div date is 11 April 2024. The Transfer Secretary will execute the distribution on or around the 25 April 2024. In line with the requirements of the Botswana Income Tax Act (CAP 52.01), withholding tax at the applicable rate will be deducted by the company from interest paid to unit holders unless they are specifically exempted
6 months to December
2023
2022
Linked units in issue
280m
280m
Distribution per linked unit
9.11 thebe
9.11 thebe
4. GROUP INVESTMENT PORTFOLIO
Sectoral Spread 31 December 2023*
43%
* Includes assets held for sale
57%
* Includes assets held for sale
Commercial
Company Investment Portfolio P(m) as at 31 December 2023*
1600
1400
1200
1000
800
200
400 970
600
0
2018
2019
* Includes assets held for sale
5. BASIS OF PRESENTATION
2020
2021
2022
2023
2024
The summarised financial results have been prepared by applying the recognition and measurement criteria in accordance with the International Financial Reporting Standards ("IFRS") and interpretations issued by the IFRICS Interpretations Committee. In preparing the underlying financial statements from which these summarised financial results were extracted, all International Financial Reporting Standards and International Financial Reporting Interpretations Committee interpretations issued and effective for annual periods ended 31 December 2023 have been applied.
In the preparation of the summarised financial results, the company has applied key assumptions concerning the future and other inherent uncertainties in recording various assets and liabilities. These assumptions were applied consistently to the financial results for the half year ended 31 December 2023. The assumptions are subject to ongoing review and possible amendments.
6. GOVERNANCE
The Board of Directors recognises the need to conduct the business of the Company with utmost integrity and in accordance with generally accepted practices and endorses the internationally accepted principles of Corporate Governance and public responsibility.
7. BOARD CHANGES
During the period under review, Mr. Mooketsi Maphane was appointed as Deputy Chairman of the Board effective 21 September 2023. As Deputy Board Chairman, Mr Maphane is responsible for assisting the Chairperson in the overall leadership and governance. At the Company's last Annual General Meeting (AGM) held on 14 December 2023, Mr Khuto Balosang and Mr Mooketsi Maphane retired by rotation in terms of section 20.9.1 of the company's constitution and being eligible they offered themselves for re-election. The two directors were unanimously re-elected into the board.
8. OUTLOOK
Having had a successful first half of the 2024 financial year by executing on the growth and asset recycling strategy through the acquisition of the further stake in Railpark Mall, the conclusion of the sale of Moedi House and the ongoing sale of the sectional titles at Red Square Apartments, the group continues to explore opportunities for balance sheet growth and funding options that can be deployed to finance that growth. In addition to that, the Company took over the property and asset management services of JTTM in November 2023 so focus will also be on assimilating the group to ensure a smooth transition and enhance efficiencies in our processes.
We would like to thank our valued stakeholders for their continued support and look forward to unlocking further value in the group.
By Order of the Board
Mr. Khuto Balosang Chairman
Ms. Kamogelo Mowaneng Chief Executive Officer
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Letlole La Rona Ltd. published this content on 26 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2024 06:37:07 UTC.