NAIROBI, Kenya July 25 – Centum Real Estate reported consolidated operating profit of 650 million shillings for the year ended March 31, driven by profits from the sale of homes and development rights business line .
Home sales recorded significant revenue growth to Sh1.8 billion earned from 301 completed homes, compared to Sh457 million generated from 96 completed homes the previous year.
As of March 31, 2022, residential businesses have collected cash deposits of 6.6 billion shillings through the cumulative sale of 1,739 homes with a total sale value of 14.8 billion shillings.
Cash collected on residential customer deposits during the year reached 2.8 billion shillings.
“This performance validates an attractive, demand-driven, high-growth, capital-light and cash-generating business model,” said Centum Real Estate Ltd Managing Director Kenneth Mbae.
During the year, the strong cash flow was used to finance the construction of residential units, settle maturing debt and reduce debt by 836 million shillings through principal repayments.
The group ended the year with a strong liquidity position with cash of 1.6 billion shillings.
Even so, development rights sales generated 1.7 billion shillings from the sale of 843 acres, compared to 2.5 billion shillings from the sale of 1,324 acres the previous year.
“Centum RE is well positioned to seize the unmet opportunity of the fast-growing affordable housing market, driven by sustained population growth and high urbanization, creating strong residential demand with limited quality housing supply in South Africa. ‘East. We expect development rights sales to be a key cash flow generator depending on the level of expressive interest received,” Mbae said.
Mbae noted that in the next fiscal year, Centum RE plans to complete the construction of +300 additional housing units, launch phase 2 of the affordable housing project and continue value creation.