Centum Real Estate Limited recorded a significant drop in its financial year for the period ended 31st March 2021 to KSh 650.4 Million from KSh 2.3 Billion over a similar period in 2020.
The listed firm’s investment income also took a hit, declining to KSh 1.4 Billion from KSh 3.9 Billion at the end of 31st March 2020.
According to the firm’s consolidated statement of comprehensive income for the year ended 31st March 2021, operating profit also fell to KSh 3.4 Billion from KSh 1.2 Billion in 2020.
However, the firm’s Balance Sheet size grew from KSh 34.1 Billion in 2020 to KSh 39.6 Billion in 2021, while pre-tax profit from KSh 2.9 Billion to KSh 272.8 Million at the end of March 31st 2021.
Centum Real Estate is the holding entity of four subsidiaries, namely Vipingo Development Limited, Centum Development Kenya Limited, Uhuru Heights Limited and Pearly Marina Estates Limited in Uganda.
In September 2020, Centum Investment reorganised these holdings by consolidating its entire real estate holdings with the exception of its 58% interest in Two Rivers Development Limited under one holding company, Centum Real Estate Limited.
In a commentary by the firm’s Board of Directors, Centum Managing Director Samwel Kariuki said there was an initial slowdown in residential unit sales in the first quarter and operational disruptions, especially in Uganda.
Kariuki said that while the total number of residential units sold in the year reduced by 34% compared to 2020, cash collected as customer deposits increased by 20% from KSh 1.5 Billion to KSh 1.8 Billion,” said Kariuki.
In December 2020, the firm raised KSh 3 Billion zero coupon bond at a yield of 12.5%, which matures in December 2023. The bond proceeds were applied to two projects in Nairobi-Riverbank apartments and Loft Duplexes.
The Riverbank apartments are near completion this financial year, while the Loft Duplexes will be complete in the next financial year. Both projects have a sale value of KSh 3.4 Billion, of which units worth KSh 1.9 Billion, representing 56% of total sellable units, have been sold.
In its outlook, Centum has approved a pipeline of 4,52 homes for development in Kenya and Uganda. Of these, 96 have been completed, and a further 1,952 are either under construction or market valuation.
The firm expects a total of KSh 17.9 Billion, the revenue potential of this pipeline, to reflect on its financial statements beginning close of March 31st 2022.