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NEW AFRICAN PROPERTIES LIMITED
"the Company" or "New African Properties" or "NAP"
Incorporated in the Republic of Botswana,
UIN BW00001055962 (Previously 2008/545)
BSE share code: NAP ISIN code: BW 000 000 1049

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Strategy

Nature Of Investment And Returns

Five Year Historical Review

Property Portfolio

Our People

Administration

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The property portfolio remains unchanged with 57 Botswana properties and 7 Namibian properties, amounting to 97% and 3% of the total value respectively. The portfolio composition is almost exclusively retail at 99% of total value.

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The top 10 properties account for approximately 81% of the total portfolio valuation and are weighted towards Gaborone, with exposure to Molepolole, Kasane and Maun. The remaining properties are well located smaller properties across the footprint of Botswana and in the central and north of Namibia.

NAP has historically benefited from a strong diverse tenant base. At year end 95% (2019: 97%) of the gross lettable area was let to tenants in terms of 480 separate leases (2019: 478). The relative strength of the tenant profile can be demonstrated based on the categories of tenants, with 58% (2019: 58%) of rentals being received from listed and multinational companies, 12% (2019: 13%) from national companies and a further 6% and 2% (2019: 6% and 2%) from franchisees and government respectively at year end.

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The impact of COVID-19 has demonstrated the resilience of the majority of our tenants. The categories of tenants most impacted by COVID-19 are those in the entertainment sector and those dependent on the tourism sector in Kasane, but these tenants comprise a relatively small portion of the portfolio, 6% and 1% of July 2020 rentals respectively.

A further analysis of tenants based on management's internal classification used during the lockdown period shows the weighting to medium to large retailers that don't fall into one of the more specific categories (49%). Essential service providers account for a further 22%.

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Management continues to proactively manage tenant composition in order to retain the quality of the tenant base.

Total unimpaired tenant arrears, net of VAT, at the year end amounts to P5.4 million (2019: P0.2 million), which equates to 31% of the average monthly turnover for the year. These amounts are primarily attributable to outstanding lockdown rentals on which we continue to engage with tenants.

The vacancy level and monthly leases have increased from last year, from 3% to 5% and 2% to 4% of gross lettable area. Tenants occupying 15% of leases that expired during the 2020 financial year vacated, with the majority of this relet before year end, but the balance contributed to the overall increase in vacancies.

Selebi Phikwe accounts for 30% of the total vacant area at year end and a further 20% relates to two vacancies in small industrial properties in Francistown. Of the remaining 50% there is a weighting to Madirelo (14%) as a result of the liquidation of Payless, and the balance is spread across a number of properties and is mainly transitional in nature. The majority of the monthly tenancies are due to delays in finalising negotiations but where the tenant has indicated that they will renew.

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Cyclical lease periods impact on the expiry profile of leases and Management endeavours to achieve a fairly even lease expiry profile. The expiry profile over the next three years has remained fairly consistent with last year.

Properties with more notable expiries in the next financial year, comprising a third of the total, are Kagiso Centre, Riverwalk, Mokoro, Mochudi and SC Industries. All of these other than SC Industries are retail in nature.

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