Letlole La Rona has reported a sharp rise in profitability for the year ended 30 June 2025, with profit before tax more than tripling to P131.2 million, compared to P41.1 million in the prior year.
Group revenue grew 16% year-on-year to P201.8 million, supported by organic rental growth and the first full-year consolidation of JTTM Properties, which was only reflected for nine months in FY2024.
The company’s operating profit jumped to P118.8 million, from just P18.3 million a year earlier, while total comprehensive income surged to P107.5 million, up from P26.2 million in FY2024
LLR attributed the performance to resilient assets, a high-quality tenant base and robust rental collections, with occupancy averaging 98% and collection rates at nearly 100%. However, fair value gains on investment properties eased 9% to P49.8 million, reflecting softer market conditions.
Property-related expenses climbed 19% due to repairs and maintenance costs linked to flood damage, while administrative expenses rose following the creation of new senior roles to strengthen the execution of the company’s growth strategy. This lifted the cost-to-income ratio to 38% from 35% previously.
Despite the stronger profit, unitholder distributions declined. The board declared a final payout of 6.45 thebe per linked unit, bringing the total FY2025 distribution to 12.76 thebe, down 11.3% year-on-year. The company said the cut reflected efforts to preserve value and cushion against underperforming foreign investments.
LLR also announced strategic changes, including the decision to exit its investment in Orbit Africa Logistics Limited to focus on its Botswana portfolio. The group’s investment property portfolio stood at P1.87 billion, with retail and industrial assets accounting for 45% and 55% respectively
On the governance front, the company appointed Amantle Kerebotswe as a non-executive director and Rorisang Modikana as Chief Financial Officer during the year, bolstering leadership capacity at both board and management levels.
Looking ahead, LLR said it will pursue selective opportunities while maintaining strict financial discipline. “Efficient capital allocation and capital budgeting strategies have become critical as the Group journeys through pipeline conversion and new developments,” the company noted, adding that a capital raising initiative is underway to support portfolio expansion