Centum Real Estate has reduced its half-year losses by 38 per cent to KES 187.4 million, up from the KES 302.7 million loss reported in the half-year that ended September 2021.
The loss cut by the property investment firm was mainly driven by profit from residential units, sales of bulk land and development rights, and reduced finance costs.
Stable demand for property saw the group record an increase in the value of signed contracts, which closed the period at KES 4.3 billion, expected to be collected in the next 12-24 months.
This comes amid a rise in prices of prime properties in Nairobi, which has been listed among the top investment destinations by real estate firm- Knight Frank.
During the review period, total assets in the firm amounted to KES 40.2 billion, funded by shareholder equity of KES 24.4 billion and KES 4.9 billion in borrowing.
However, Centum’s net revenue from the sale of residential units, dropped to KES 898.3 million compared to KES 931.5 million in the same period last year, amid a higher cost of sales which include transfer taxes, recording costs, title costs, due diligence costs and maintenance, with the weak shilling against the US dollar further impacting on its balance sheet.
The Kenyan shilling, on the other hand, strengthened against the Uganda shilling leading to currency translation losses when translating its Uganda-shilling-denominated investment property.
“Other comprehensive income reflects currency translation differences of our Uganda and Mauritian subsidiaries whose functional and presentation currencies are the Uganda shilling and US dollar, respectively,” the firm said in its latest financial results.
Centum is Kenya’s and East Africa’s biggest developer of housing and office projects with investments in Kenya and Uganda.
Its investment portfolio includes Centum Development Kenya, Vipingo Development Limited, Pearl Marina Estates Limited (Uganda) and Development Management.
Some of its projects include the Riverbank, Loft Residences, Vipingo Development and Pearl Marina Estates, among others.
“The group also has investment property in Uganda. During the period, the Kenya Shilling strengthened against the Uganda shilling leading to currency translation losses when translating our Uganda Shilling denominated investment property,” it added.
Read also; Centum Shareholders Set to Receive Ksh 391 Million Dividend Payout Amid Losses.
