NAIROBI, Kenya, July 14 – Centum Investment Company’s real estate subsidiary, Centum Re, posted a Sh1 billion profit before tax in the financial year ending March 31st, 2023, on higher property valuations.
Its profit improved from the Sh145 million that was posted during a similar period last year.
The developer also reported a property valuation gain of Sh2 billion, up from Sh500 million in the review period.
Likewise, higher profit was boosted by increased project completions and handovers in Kenya and Uganda.
Additional infrastructure investment and development rights sales saw an improved valuation of the company’s land banks.
“The financial year was characterized by elevated inflationary pressures, a depreciating Kenya shilling against major hard currencies, supply chain constraints, elections and deteriorating global macroeconomic conditions,” Centum Re Managing Director Kenneth said in a statement.
“Despite these headwinds, Centum Real Estate Limited posted an improved performance overall.”
Net profit increased to Sh174 million, compared to a loss of Sh487 million in the prior year.
During the year, the company recognized revenue from 222 housing units, while the revenue booked in the income statement was Sh1.9 billion.
Sold and completed units pending recognition were valued at Sh2.6 billion, while unsold and completed units were valued at Sh0.6 billion.
The units pending recognition are projected to be recognized in the subsequent financial year.
“We have 2,076 homes under active development, of which 895 homes have been completed and a further 1,949 under various stages of construction with a target completion date of March 2024,” added Mbae.
