background
logo1
head3

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

home
company
invest
photob
contact

 

 

Strategy

Nature Of Investment And Returns

Five Year Historical Review

Property Portfolio

Our People

Administration

returns
nap_18ar
logo-back

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 nterest 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 2020

The total return to investors is based on distribution paid and the movement in the unit price during the year. Notwithstanding the challenging times during the second half of the year, distributions paid amounted to an income return of 7.9% (8.0%) on the opening unit price. The unit price has dropped by 1 thebe during the year (2019: increase of 3 thebe), which has the effect of diluting the total return for the year
to 7.6% (2019: 9.0%).

ret_bar1

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.

ret_bar2

In aggregate NAP has generated total returns of 156% since listing at P2 per unit, 94% by way of distributions and 62% from the increase in the unit price. This equates to a compound total annual return of 11.0%.

foot