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Turnstar banks on regional footprint as property sector faces headwinds

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Turnstar Holdings says its operations across Botswana, Tanzania and Dubai helped support stable performance during the year ended 31 January 2026, as Botswana’s commercial property sector contended with slower economic growth, tighter liquidity and lower property valuations.

The Botswana Stock Exchange-listed property group reported a 3 percent increase in revenue to P354.4 million, while cash generated from operations rose to P189.6 million. Profit before tax declined to P64.4 million from P188.6 million in the previous year, largely due to non-cash fair value adjustments and foreign exchange translation losses.

Managing Director Comfort Rankgomo said the Group’s regional presence continued to support operational performance.

“Our geographic diversification strategy continued to demonstrate its value by supporting stable operational performance across the Group’s portfolio,” he said.

Nearly half of Turnstar’s external revenue was generated in Tanzania during the reporting period, while Botswana contributed just over half through assets including Game City Mall, Turnstar House and Nzano Shopping Centre.

According to the annual report, rental income and occupancy levels remained stable across the Group’s portfolio, which includes properties in Botswana, Tanzania and Dubai.

The results come as Botswana’s commercial property market faces pressure from slower economic activity linked to the downturn in the diamond sector. Higher interest rates have also weighed on property valuations across the market.

Turnstar said Tanzania remained a significant contributor to earnings, with Mlimani City benefiting from strong occupancy levels and leases linked to the US dollar. The Group’s Dubai investment also continued to generate rental income, providing additional geographic diversification.

Nearly half of Turnstar’s external revenue was generated in Tanzania during the reporting period, while Botswana contributed just over half through assets including Game City Mall, Turnstar House and Nzano Shopping Centre.

“Our diversified property portfolio across Botswana, Tanzania and Dubai continued to provide resilience by reducing reliance on any single market and supporting stable revenue growth,” Rankgomo said.

The Group also strengthened its balance sheet during the year, reducing its gearing ratio from 28 percent to 26 percent.

Turnstar said the lower debt levels provide additional financial flexibility at a time when higher borrowing costs are affecting the property sector.

Management expects market conditions to remain challenging but said it will continue focusing on capital discipline, cost management and operational efficiency.

“We remain cautiously optimistic while maintaining a disciplined approach to capital allocation, cost management and operational efficiency,” Rankgomo said. “Our assets remain well positioned within their respective markets.”

The Group said its priorities for the coming year include maintaining low vacancy levels, improving operational efficiency and using internally generated cash flows to enhance existing assets.

Turnstar joins a number of listed property companies pursuing geographic diversification as a way of reducing exposure to domestic market conditions, with regional assets increasingly contributing to earnings and portfolio stability.

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