Home Afrika Limited has reported a net profit of KSh 117.89 million for the full year ended 31 December 2025, marking the second consecutive year of profitability for the NSE-listed property developer.
- •Revenue contracted 34.9% to KSh 508.67 million from KSh 781.91 million in 2024, a decline the company attributed to the timing of deferred income recognition rather than a deterioration in underlying demand.
- •The prior year's revenue had been boosted by an unusually large recognition cycle tied to Migaa PDS lease registrations and HAL Smart Plots title issuances, setting a high base that the 2025 period could not match.
- •The balance sheet, however, tells a more cautious story: Total equity remains negative at KSh 1.03 billion, an improvement from negative KSh 2.33 billion in 2024, but much of that improvement derives from a KSh 1.18 billion prior year adjustment rather than retained earnings.
Despite the top-line contraction, margin performance improved materially across every profitability measure. Gross profit margin widened to 54.9% from 47.8%, operating margin expanded to 37.2% from 28.6%, and net profit margin rose to 23.2% from 17.1%.
The improvement reflects a 20% reduction in overall costs, with administrative expenses falling 35.1% to KSh 88.57 million and cost of sales declining 43.9% to KSh 229.30 million. Finance costs also eased 10.2% to KSh 70.68 million.
Other operating income rose 48.5% to KSh 46.56 million, driven by rental income from Mitini Apartments, office subletting at the Morningside headquarters, and increased green fees and tournament activity at the Migaa Golf Course. The golf course, now certified and fully operational, has become a meaningful secondary revenue stream and a catalyst for adjacent residential plot sales, a dynamic that carried into H1 2025 where other income more than doubled year-on-year.
Operating cash generation strengthened, with net cash from operating activities rising 29% to KSh 396.33 million from KSh 307.11 million, giving the business a degree of self-funding capacity it has not had for most of its listed history.
Total liabilities stand at KSh 4.77 billion against total assets of KSh 3.74 billion. Borrowings rose 6.8% to KSh 1.09 billion, and the KSh 680.95 million private placement bond remains unchanged with no visible repayment progress. Trade receivables nearly doubled to KSh 649.38 million against a backdrop of falling revenue, a divergence the company did not address in its published commentary.
The directors have not recommended a dividend for the period, citing the need to rebuild equity and reduce obligations. The board's medium-term target is recovery of a positive equity position before returning capital to shareholders.
