Productive capital
Commercialise the property portfolio through development projects in collaboration with property investment partners
Optimise property operating costs through the disposal of vacated properties and property cost benchmarking
Enhance the resilience of power supply through interventions
that centre on clean energy and that reduce our carbon emissions as part of the ESG Strategyt
Secured interest from various property development investment partners for property development opportunities, with some projects ready for construction
during FY2024
Realised sales proceeds of R64 million out of 39 property sale transactions
Executed on several energy management and efficiency projects that represent a foundation for large-scale interventions for the portfolio in FY2024
Power-availability challenges resulted in significantly above-normal expenditure on diesel for backup generators
The unreliability of grid power remains a major challenge going into FY2024
Gyro remains on course to realise value and optimise the property portfolios in Gyro Properties and Telkom. Gyro advanced development planning activity for select development opportunities and concluded nonbinding memoranda (MOUs) with development investment partners for the execution of the development projects. Gyro continued to rationalise the property portfolio through the disposal of decommissioned assets that are no longer required for core operational purposes, resulting in sale proceeds from property disposal transactions. We continued to execute on energy interventions during the year, and plan to implement more significant interventions in the new financial year that will contribute meaningfully to reducing carbon emissions while improving the resilience of power supply.
Total revenue increased by 0.6% to R1 630 million largely due to growth in the masts and towers business (Swiftnet), which was offset by terminations by one of our MNO clients and Openserve decommissioning and optimisation on the masts and towers and properties. Overall, EBITDA decreased by 7.4% to R1 131 million impacted by transaction advisory expenses and increased property operating costs.
In view of the advanced property development work that continued from the beginning of the financial year, for select property development opportunities, the development pipeline attracted interest resulting in non-binding MOUs concluded with property development investors. Partnerships with the prospective investors are at the level of individual property projects or a cluster of similar projects, with the intent to commence construction for some projects during the new financial year.
Gyro continued to reduce property operating costs by terminating property services for properties that are no longer utilised for operational purposes and disposing of assets that are unsuitable for repurposing or development opportunities. We executed two property auctions during the financial year and realised sales proceeds of R64 million out of 39 property sale transactions. There are 43 sold properties in the property transfer process and we plan to dispose of more vacated properties in the new financial year.
We plan to address energy efficiency and energy security more effectively in the new year for both the short and medium terms through interventions that maximise energy security and contribute meaningfully towards decarbonisation. Execution of energy projects is in progress through various interventions across the Telkom business units, with the objective of ensuring the resilience and efficiency of Telkom's network and operations while contributing towards attaining the environmental ESG Strategy targets.
Property Developments (Gyro Properties)
For the new financial year, we aim to conclude binding agreements with prospective property investment partners and commence construction for some development opportunities. We are in the process of transferring development properties into ring-fenced special purpose vehicles (SPVs) in which we are partnering with the investment partners.
Property Disposals (Telkom owned properties and Gyro owned properties)
Our focus will remain to reduce property costs and maximise sales proceeds through the disposal of properties not required for operational purposes and not earmarked for development. We aim to complete the transfer of 43 properties and dispose of additional properties during the year.
Property Management (Gyro Group)
We will continue to focus on the optimisation of property operating costs across the property and tower portfolios as well as the execution of energyefficiency and energy-security projects that will contribute meaningfully towards the reduction of carbon emissions andthe attainment of the environmental component of the ESG Strategy.