Centum real estate reported a Sh650million consolidated operating profit for the year ended March 31, driven by profits from homes sales and development rights business line.
Home sales achieved significant revenue growth to Sh1.8billion realized from 301 completed homes, up from Sh457M generated from 96 completed homes in prior year.
As at 31st March 2022, residential business collected cash deposits of Sh6.6billion from cumulative sale of 1,739 homes with a total sales value of Sh14.8billion.
The cash collected from residential customer deposits within the year increased to Sh2.8billion.
“This performance validates attractive, demand led, high growth, capital light and cash generating business model” said the Centum Real Estate Ltd Managing Director, Kenneth Mbae.
During the year, the strong cashflows were utilized to fund construction of residential units, settle maturing debt obligation, and reduce the debt by Sh836million on account of principal repayments.
The group closed the year with a strong liquidity position with cash holding of Sh1.6billion.
Even so, development rights sales generated Sh1.7billion from sale of 843 acres down from Sh2.5billiom realized from sale of 1,324 acres in prior year.
“Centum RE is well positioned to capture the unmet high growth affordable housing market opportunity driven by sustained population growth and high urbanization creating high residential demand with limited quality housing supply in East Africa. We expect development rights sales to be a key cash flow generator based on the level of expression interest received,” said Mbae.
Mbae noted that in the next financial year, Centum RE expects to complete the construction of additional +300 homes, launch the phase 2 affordable housing project and pursue value creation.
SOURCES: Business daily
