The Far Property Company Limited (FPC) has delivered impressive results for the year ended 30 June 2026, with a 21 percent leap in profit before income tax to P188.9 million, up from P156.2 million a year earlier. This performance underscores the resilience of its property base and the ambition of its management. FPC's portfolio of shopping centres, industrial parks, and offices spans four countries, including Botswana, South Africa, Zambia, and Namibia.
The company's profit for the year attributable to linked unitholders rose 28 percent to P177.9 million from P139.5 million, lifting basic earnings per linked unit to 35.95 thebe from 28.93 thebe. Total comprehensive income reached P193.5 million, driven by a broad-based lift in revenue, operating profit, and net income from operations. Revenue rose 8 percent to P189.0 million, operating profit advanced 9 percent to P175.8 million, and net income from operations edged up 5 percent to P133.2 million.
A significant upward revaluation of investment property, amounting to P58.5 million, contributed to the company's strong performance. This revaluation, more than double the prior year's adjustment, reflects a portfolio that valuers judged to be worth more at year-end than twelve months before. The balance sheet also shows steady expansion, with the value of FPC's investment property growing 12 percent to P1.98 billion, pushing total assets to P2.22 billion from P1.97 billion.
FPC's management has kept gearing in check, with a loan-to-asset value of 23 percent, providing comfortable headroom for further acquisitions. The company's cash generation was a standout, with net cash generated from operating activities doubling to P199.5 million from P98.9 million. FPC closed the year with P43.8 million in cash and equivalents, a healthy recovery from P6.0 million a year earlier.
The company's portfolio is well-balanced and defensively positioned, with 51 percent of commercial space, 42 percent of industrial space, and 7 percent of residential space. FPC's tenant roster is anchored by premium occupiers, with 78 percent of tenants graded A, including national and international retail brands and blue-chip names. The company points to long-term leases underpinning cash flows and a vacancy rate it calls negligible, with an overall rent yield of around 10 percent.
Botswana remains the engine room of FPC's operations, generating 84 percent of revenue, followed by South Africa at 10 percent, Zambia at 5 percent, and Namibia at 1 percent. The company will reward investors with a distribution of 13.28 thebe per linked unit for the year, comprising 13.17 thebe of interest and 0.11 thebe of dividend, up from 12.65 thebe the previous year. The payout, declared on 26 June 2026, is due on 11 November 2026.
FPC's strategy signals where the growth will come from, with five new projects offering better rental yields and portfolio value in progress. The group is also pressing ahead with plans to develop its existing land bank, securing high-quality tenants and stronger yields, while scouting additional commercial land for future development. The company's management was explicit that retained earnings are earmarked for expanding the business and developing its growing land bank.
Key points
- Far Property Company Limited reports 21% increase in profit before income tax for the year ended 30 June 2026.
- The company's portfolio spans four countries, including Botswana, South Africa, Zambia, and Namibia.
- FPC's management has kept gearing in check, with a loan-to-asset value of 23 percent.
