"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





Nature Of Investment And Returns

Five Year Historical Review

Property Portfolio

Our People



Nature of investment

The ownership of linked units in a variable rate loan stock company is tax efficient as profits are distributed by means of a dividend and a debenture interest payment which is larger than the dividend. The full amount of interest is deductible from income of the variable rate loan stock company as an expense incurred in the production thereof. The Income Tax (Amendment) Act of 2019 restored this position after the 2018 Amendment temporarily restricted this deductibility.

Dividends paid by the company are subject to withholding tax which is a final tax. Interest is also subject to withholding tax, unless the unitholder is exempt, and this tax can be credited against tax payable by the recipient. Any capital gains on disposal of linked units after one year of acquisition are exempt from taxation under the current taxation regime as the Company has offered more than 49% of its linked units to trade on the Botswana Stock Exchange. In addition to being able to vote on issues that affect them, unitholders' interests are protected through application of a code of governance and appointment of independent directors to the Board.

Returns to 31 July 2021

The total return to investors is based on total distributions paid plus the movement in the unit price during the year. Notwithstanding the impact of Covid-19 the income returns to investors has remained strong. The income return on the opening price has increased from 7.9% in 2020 to 8.5% for the 2021 financial year as a result of the growth in distributions exceeding the growth in the unit price.

The nominal 2 thebe increase in the unit price during the financial year has resulted in a 0.6% capital return, contributing to a 9.1% total return for the year.


Since listing the total returns have varied primarily as a result of the differences in unit price movements, while income returns have remained fairly consistent. In aggregate NAP has generated total returns of 170% (2020: 156%) since listing at P2 per unit, 108% (2020: 94%) by way of distributions and 63% (2020: 62%) from the increase in the unit price. This equates to a compound total annual return of 10.5% (2020: 11.0%). The unit price has typically remained fairly constant other than when there are sizeable trades.