Skip to content
Market News

Centum Real Estate Posts Ksh 650 Million Operating Profit

BY Soko Directory Team · July 25, 2022 07:07 am

KEY POINTS

Home sales have achieved significant revenue growth to KES 1.8B realized from 301 completed homes, up from KES 457M generated from 96 completed homes in the prior year.

Centum real estate reported KES 650M consolidated operating profit for the year ended 31st March 2022, driven by earnings from homes sales and development rights business line.

Home sales have achieved significant revenue growth to KES 1.8B realized from 301 completed homes, up from KES 457M generated from 96 completed homes in the prior year. Development rights sales generated KES 1.7B from the sale of 843 acres compared to KES 2.5B realized from the sale of 1,324 acres in the prior year.

As of 31st March 2022, residential business collected cash deposits of KES 6.6B ( 2021: KES 3.8B) from the cumulative sale of 1,739 homes (2021: 1,363) with a total sales value of KES 14.8B (2021: KES 11.3B). The cash collected from residential customer deposits within the year increased by KES 2.8B (2021: KES 1.8B).

The development rights business collected cumulative cash of KES 3.85B from cumulative sales of 2,197 acres (2021: 1,324 acres) with total sales of KES 4.9B. “This performance validates attractive, demand-led, high growth, capital flight, and cash-generating business model,” said the Centum Real Estate Ltd Managing Director, Kenneth Mbae

During the year, the strong cashflows were utilized to fund the construction of residential units, settle maturing debt obligations, and reduce the debt by KES 836M on account of principal repayments. The group closed the year with a strong liquidity position with a cash holding of KES 1.6B.

Centum RE is well positioned to capture the unmet high-growth affordable housing market opportunity driven by sustained population growth and high urbanization creating high residential demand with limited quality housing supply in East Africa. We expect development rights sales to be a key cash flow generator based on the level of expression interest received noted Mr, Mbae

In the next financial year, Centum RE expects to complete construction of additional +300 homes, launch phase 2 affordable housing project and pursue value creation through margin growth by re-imagining design, reducing construction timelines, and supply chain review to source materials from the COMESA region and taking advantage of incentives said Mr. Mbae

Centum Real Estate is the region’s leading investor and developer of mixed-use urban nodes, with a track record assuring investors of quality for money, timely handover of projects, and a high return on their investment

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

Trending Stories
Government and Policy Kenya Is Struggling With Debt As Modest Revenue Is Collected With Limited Development Investment Steve Biko Wafula
Entrepreneur's Corner Kenyan Clients Don’t Care Whether You’re In the ICU: The Brutal Truth Of Entrepreneurship Soko Directory Team
Headlines Are The SACCOS The Infinite Money Glitch Of Kenya? Soko Directory Team
Government and Policy Saccos Clamp Down On Struggling Businesses, Recover Sh491 Million In A Ruthless Crackdown Soko Directory Team
Entrepreneur's Corner The Greatest Skill Everyone Should Master Is The Skill Of Knowing How To Manage Money Soko Directory Team
Related Articles
Market News Safaricom’s M-PESA Hits 34 Million Customers In Kenya Soko Directory Team
Market News Savannah Clinker Withdraws Competing Offer For Bamburi Cement Soko Directory Team
Market News November PMI Expands To 50.9, CBK MPC Interest Rate Decision Tomorrow Soko Directory Team
Market News Savannah Clinker Seeks CMA’s Approval For Offer Extension: No Money? Soko Directory Team
Market News Kenyan Shillings Maintains Resilience Against The US Dollar With Slight 0.06% Shedding Soko Directory Team
Explore Soko Directory
Banking Blogging Commodity Watch Did you know Entertainment Entrepreneur's Corner Feature Government and Policy Headlines Investment Lifestyle Market News Money Opinion Press Releases Stock Watch Technology
Soko Directory Archives