Turnstar Holdings increased its profit before tax by 19.5% to P86.9 million in the six months ended July 2026, supported by rental growth across its property portfolio and a turnaround in foreign exchange movements.
The property group, which operates in Botswana, Tanzania and the United Arab Emirates, reported revenue of P181 million, up 4% from P174 million in the corresponding period last year. Operating profit rose 4.4% to P102.3 million from P98 million, according to its unaudited interim financial results.
Profit for the six-month period, however, declined to P85.1 million from P95.2 million a year earlier, reflecting a higher tax charge compared with the prior period, when the group recorded a tax credit of P22.5 million. The latest results show a tax expense of P1.7 million.
The improvement in profit before tax was partly driven by a reversal in foreign exchange movements. Turnstar recorded an exchange gain of P6.6 million, compared with an exchange loss of P6.4 million in the same period last year.
Rental income remained the main source of revenue, increasing to P181 million from P174 million. The group attributed the growth to rental escalations and strong occupancy across its portfolio, alongside improved cost performance in Tanzania and Dubai.
In Botswana, revenue from external customers increased to P92 million from P87 million, while operating profit rose to P59.5 million from P57.1 million. The performance was supported by rental increases and strong occupancy, although the company noted that the local property market remained selective, with softer rents for prime space and greater demand for more cost-efficient B-grade offices.
Turnstar's Tanzanian operations also recorded growth, with Mlimani City continuing to benefit from rental income and improved operating cost management. Rental income at the development increased by 2% year-on-year, supported by growth in conference and residential income, while operating profit rose by 11%. The company reported that the shopping mall was fully occupied, with office park occupancy at approximately 94% and residential villas at 96%.
In Dubai, Palazzo Venezia remained fully let, with rental income increasing by 22% compared with the same period last year. Operating profit also increased significantly, supported by improved lease rates, the recovery of previously vacant units and lower repairs and maintenance costs.
Despite the improved operating performance, Turnstar's expenses increased during the period. Operating expenses rose to P80.4 million from P73.8 million, with the company pointing to cost pressures primarily in Botswana.
The group's investment property portfolio stood at P2.65 billion at the end of July, compared with P2.67 billion in July 2025. No independent external valuation was conducted at the half-year reporting date, with the properties remaining at their January 2026 valuations. A formal valuation exercise is scheduled for the financial year-end.
Borrowings remained unchanged at P596 million, while total assets increased marginally to P2.8 billion from P2.797 billion a year earlier.
Turnstar also recorded a P72.2 million non-cash foreign currency translation gain in other comprehensive income, compared with a P134.9 million loss in the prior-year period. The movement reflected the translation of its foreign operations into the Botswana pula.
The group generated P85.9 million in net cash from operating activities, down from P91.5 million a year earlier. Cash and cash equivalents stood at approximately P74.2 million at the end of July, compared with P55.5 million in the corresponding period last year.
The board proposed an interim distribution of 10 thebe per linked unit, comprising 7.305 thebe in debenture interest and 2.695 thebe in dividends. The distribution is payable on December 10, 2026, to registered linked-unit holders as at November 30, with the units trading ex-distribution from November 26.
Looking ahead, Turnstar said it would focus on maintaining occupancy, protecting rental income, strengthening collections and controlling operating costs as it navigates mixed property-market conditions across its three markets.
The company said its diversified portfolio and recurring rental income remained central to its strategy, while its Tanzanian land bank offered potential for future development.