By Kepha Muiruri For Citizen Digital
The company expects its full-year earnings to be at least 25 per cent lower than the prior year on lower revaluation gains on investment property in the review period.
Nevertheless, the company says the lower revaluation has not impacted the company’s solvency and cash flows as the firm’s sale revenues remain well above costs.
“In the current financial year, we expect to complete substantial sales of investment property at a significant value uplift to the original cost and in line with current valuation. We also expect to have a significant increase in completed sales of residential units relative to the prior financial year,” Centum Real Estate said in a statement on Thursday.
In the year to March 31, 2021, Centum Real Estate carried its investment property at a value of Ksh.28.5 billion including an inventory of both complete and under construction residential units.
In six months to September 30, 2021, Centum Real Estate returned a half-year loss of Ksh.302 million as revaluations and higher finance costs slashed the firm’s returns from selling residential units and sale of development rights.
As of September last year, Centum Real Estate had an asset base of Ksh.40.9 billion, including Ksh.1.4 billion in cash and near cash assets.
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