Centum Investment Company's real estate subsidiary, Centum Re, has recorded a Kes 1 billion profit before tax in the financial year ending March 31st, 2023, compared to Kes 145 million posted during a similar period last year.
The company has attributed the growth to higher property valuations.
The developer also reported a property valuation gain of Kes 2 billion, up from Kes 500 million in the review period.
Likewise, increased project completions and handovers in Kenya and Uganda boosted higher profits.
Further, additional infrastructure investment and development rights sales saw an improved valuation of the company’s land banks.
Centum Re Managing Director Kenneth Mbae said in a statement stated that the financial year was characterised by elevated inflationary pressures.
A depreciating Kenya shilling against major hard currencies, supply chain constraints, elections and deteriorating global macroeconomic conditions.
“Despite these headwinds, Centum Real Estate Limited posted an improved performance overall,” he said.
Moreover, net profit increased to Kes 174 million, compared to a loss of Kes 487 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 Kes 1.9 billion.
Sold and completed units pending recognition were valued at Kes 2.6 billion, while unsold and completed units were valued at Kes 0.6 billion.
The units pending recognition are projected to be recognized in the subsequent financial year.
