SWAPROP RENTAL EARNINGS UP 17.81%

 MBABANE – SWAPROP recorded an impressive 17.81 per cent growth in its rental income before the straight lining of leases adjustment.

 In the company’s financial results for the year ended June 30, 2019 Swaziland Investment Property Limited (SWAPROP) reported that during the year, the group’s occupancy levels were high and rental income before the straight lining of leases adjustment had increased from E17.4 million to E20.5 million.
Independent calculations by the Business Desk unearthed that this was an improvement of 17.81 per cent.

“Total revenue increased by E3.2 million,” read the financials commentary in part.
The increase was attributed to increased rentals at The Hub and Nhlangano Mall which had additional space to let. It was pointed out that the group operating expenses increased to E9.2 million in 2019 from E7.2 million in 2018 a result of a rise in water tariffs, parking costs, accounting fees, higher depreciation and bad debt charge.

“There were also lower bad debt recoveries in the current year. Against this backdrop, the distribution of E13 million for the year was an improvement on the one declared last year of E10 million,” it was explained.

It was mentioned that directors re-valued the property portfolio using the income yield method which resulted in a E30.8 million upward fair value adjustment. This reflected the improvements in the portfolio’s ability to generate revenues, particularly in Plaza Park and Nhlangano Mall.
In terms of outlook, it was reported that “in the forthcoming financial year, management will strive to optimise occupancy in all properties and increase rental incomes while containing costs.”
The company also mentioned that a final distribution (number 43) of 30.14 cents per linked unit was declared on 5 November 5, 2019 payable to unit-holders registered in the books of the company at the close of business on November 29, 2019.
Closed
It was stated that the transfer books and register of members would be closed on November 28, 2019 (one day) for the purpose of identifying those unit holders to whom the distribution would be made. “The above mentioned final distribution will be paid out of current earnings. Notice is hereby given that the annual general meeting of members of the Company will be held at the SWAKI offices in Ezulwini on December 6, 2019 at 10am,” added SWAPROP.

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