SWAPROP OPERATING PROFITS SURGE BY 48%

MBABANE – For the year, ended June 30, 2024, the Swaziland Property Investments Limited (SWAPROP) Group’s operating profit increased by 48 per cent to E16.6 million.

According to the company’s financial results, its revenue increased by 27 per cent to E33.7 million in the current year. SWAPROP is a property investment holding company which derives its income from interest on loans with its subsidiary companies and interest on investment accounts. Wholly-owned subsidiaries linked to SWAPROP include Plaza Park Limited, the Hub Limited, Tincwadzi Properties Limited, Nhlangano Mall Properties and Elwandle Properties Limited.

Rentals

However, with effect from April 1, 2024 the group disposed of Tincwadzi Properties Limited and realised a loss on disposal of E5.8 million. The subsidiary companies own their own properties and generate income from property rentals and related revenue sources. SWAPROP also has interests in legal entities which pool securities and other assets on behalf of shareholders, unit-holders and beneficiaries. The group expenditure in 2024 increased as a result of increases in rates, property management fees and other inflation related increases. As a result of the fair value adjustment, increased finance charges and the loss on disposal of Tincwadzi the company broke even at the net profit before taxation line.

Against this backdrop the distribution of E6 million for the year is lower than that declared last year of E8 million. Under property portfolio, the directors revalued the property portfolio during the current year using the income yield method, resulting in a E4.6 million downward fair value adjustment. In the 2025 financial year the group plans to focus on maximising occupancy levels at the centres, controlling costs and raising additional finance to restructure group borrowings and to fund future expansion.

Distribution

A final distribution (number 53) of 15.86 cents per linked unit (2023: 17.22 cents) was declared on October 30, 2024 payable to unit-holders registered in the books of the company at the close of business on December 20, 2024. The register of members will be closed on December 19, 2024 for the purpose of identifying unit-holders to whom the distribution will be made.
During the six-month-period from July 1, 2023 to December 31, 2023, SWAPROP’s operations were satisfactory despite the difficult trading conditions. The ruling market price on December 31, 2023 for the company’s shares was E7.50 (Dec 2022: E7.90). The market capitalisation of the company was E174.4 million (Dec 2022: E183.7 million).

Revenue increased by 37.5 per cent compared to the corresponding-six month-period.Operational expenses have increased by 3.2 per cent. This is due to the acquisition of Matata Properties during the later part of the prior year and inflationary increases in costs, which were offset by savings on certain expenses. Administrative expenses have decreased by 12.6 per cent as a result of decreases in secretarial fees; directors’ emoluments and Eswatini Competition Commission fees.

In March 2023, the company completed the acquisition of the shares in Matata Properties (Proprietary) Limited, a company that owns the major retail properties in Matata City.
The results for December 2023 include six months of trading (December 2022: No trading) and those on June 2023 include three months of trading. The directors have approved an offer for the shares of the company that owns the industrial properties in Matsapha.

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