FaR Property Company (FPC) Limited, a property investment company listed on the Botswana Stock Exchange, has been exhibiting a bullish financial performance for years, and in its recently released results, the company has recorded a growth in asset value from P1.47 billion to P1.5 billion. This positive performance by FaR Properties has been sustained for the six months leading up to December 2022, with a net increase to P61.43 million for the six months ending December 2023.
During the stated period, the company experienced an 11% increase in revenue, while its rent yield remained stable at 11%. Profit before income tax also saw a notable increase of 14%. The company’s directors highlighted a very healthy loan-to-asset value ratio of below 20%.
FaR Property generates significant revenue in Southern African countries such as Botswana, South Africa, and Zambia, owning a total of 186 properties. Its diverse portfolio includes retail, commercial, industrial, and residential properties across Botswana, South Africa, and Zambia.
According to the recent financial report, the company anticipates adding two new projects with improved rent yields to its portfolio before the end of the current financial year. Additionally, four additional developments are expected to be completed in the following financial year (2025), further enhancing growth prospects and yields. The company plans for continued growth through the development of properties within its existing land bank, maintaining a focus on yield-enhancing assets that offer consistent rental growth through portfolio diversification.
FaR Property’s portfolio comprises 78% Grade-A tenants, including premium retail tenants with national and international brands. Grade-B tenants, representing 19% of the portfolio, consist of local tenants and medium-sized businesses with well-established operations. Grade-C tenants, which make up 3% of the portfolio, are new startup companies with small business operations.
Revenue distribution from FPC’s properties is as follows: 43% derives from industrial spaces, 50% from commercial tenants, and 7% from residential properties. The majority of revenue, 86%, comes from Botswana, where the company is headquartered. FaR Properties collects 12% of its revenue from its properties in South Africa, while only 2% comes from Zambia.
