Letlole La Rona (LLR) says it will pull out of its investment in Orbit Africa Logistics in Nairobi after the deal failed to bring in positive cash flow. The main tenant at the property reportedly struggled to pay rent.
This meant Letlole’s assets/properties in Botswana had to cover this shortfall, according to recent statements by the management. Money that could have gone to investors as dividends was instead used to repay a P100 million loan taken for the project. As a result, dividends were lower in the company’s half-year results.
Read: How Letlole’s Kenya Investment Shortchanges Investors
By June 2024, the value of the property had dropped sharply from about P109 million to only P3.7 million. Investors feared the value had fallen further this year, leading to the decision to exit.
Various exit options are being explored, and we will keep our stakeholders updated,”
the company said.
It added that while the investment has been written off, the decision will allow the company to focus on its strong Botswana properties and protect long-term value for shareholders.
Management said the Botswana portfolio, which now makes up all of the company’s assets, continues to perform very well despite tough economic conditions. Occupancy levels – how much of the buildings are rented out – averaged 97.4% during the year. Rent collection is at 98% – almost all tenants paid their rent on time. “These results show the strength and resilience of our portfolio,” the company said.
Stripping out the Kenya investment, the Board of Directors said profit before tax for the year ended June 30, 2025, is expected to be more than double last year’s amount: Last year (year ended 30 June 2024), profit before tax was P41.1 million. This year (June 2025), it is expected to rise by about P88–P92 million, reaching at least P129 million.
“The significant improvement is driven by the positive movement in the Group’s expected credit losses in contrast to the previous comparable period where as the Group recognised a once-off credit loss of P101.1 million as a result of non-performance of its Kenyan associate,” the company said adding that the absence of this drag has allowed the strength of “our core operations to shine through, demonstrating the robustness of our strategy and the sustainability of our earnings going forward”.
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