NEW AFRICAN PROPERTIES LIMITED
"the Company" or "New African Properties" or "NAP"
Incorporated in the Republic of Botswana,
UIN BW00001055962
BSE share code: NAP-EQU ISIN code: BW 000 000 1049
Nature of investment
The structure of linked units in a variable rate loan stock company offers tax efficiency, as profits are distributed through both dividends and debenture interest. The interest portion is deductible for the company, while dividends and interest are subject to withholding tax, unless exemptions apply. The Income Tax (Amendment) Act of 2019 restored this position after the 2018 Amendment temporarily restricted this deductibility.
Capital gains on linked units held for more than a year are currently exempt from tax, as more than 49% of the company's units are listed on the Botswana Stock Exchange.
Unitholders also benefit from governance protections, including the right to vote on matters affecting them and oversight by independent directors in line with a governance code.
Returns to investors for 2025
Returns to investors comprise the distributions received during the year together with the capital growth from movements in the unit price.
For 2025, the income return from the 33.32 thebe distribution equated to 8.6% on the opening unit price of 388 thebe. Taking into account the 16 thebe increase in the unit price to 404 thebe per unit by 31 July 2025, the total return to investors amounted to 49.32 thebe per linked unit, representing a total return of 12.7% for the year.
Since listing, the aggregate total return to investors amounts to 273% (2024: 248%) on the 200 thebe listing price. Of this, 171% (2024: 154%) is attributable to distributions, with capital growth contributing 102% (2024: 94%). The compound annual growth rate in total returns is 10.0% since listing (2024: 10.2%).
Income returns have remained steady since listing, generally fluctuating between 7.3% and 9.5%, whilst unit price movements have shown more variability. The past two years have reflected a gradual upward trend in the unit price, driven by day-to-day market activity, in contrast to earlier years when changes were influenced by a small number of larger trades.
The chart below highlights the consistency of income returns over time (without reinvestment in units), alongside total returns and units traded.
With reinvestment of distributions in units, the compound annual return was 13.5%, unchanged from 2024.
