•Kariuki said they on course to completing construction of 524 homes in the financial year ending 31 March 2022 and a further 1,426 in the subsequent financial year.
•The Group’s total assets amounted to Sh 40 billion as at 31 March 2021, funded by shareholder equity of Sh 23.4 billion and Sh 6.7 billion in borrowings.
Centum Real Estate Limited has reported a consolidated profit of Sh650 million for the year ended March 31 2021.
This profit has been driven by profit from residential units, sales development rights and gains on investment properties.
Centum Real Estate recorded residential unit sale deposits of Sh1.8 billion in the year, a 20% increase from Sh1.5 billion recorded in 2020.
“The effect of Covid-19 containment measures was an initial slowdown particularly in Uganda, but this changed in subsequent quarters and our average monthly cash collections have increased by 73% ,” Real Estate Managing Director, Samuel Kariuki said.
Centum Real Estate completed the construction of two projects in Vipingo and Uganda, in addition to launching three new projects in Nairobi.
Two of the new projects attained the pre-set market validation threshold of 30% and their construction has commenced.
In the sales-led development model, Centum Real Estate seeks to pre-sell at least 30% of a project phase before ground-breaking.
Centum Real Estate had cumulatively sold 1,281 residential units with a total sale value of Sh11.5 billion as at March 31 2021.
This represents 63% of the total units either completed, under construction or under market validation.
“These sold units have a profit potential of KES 2.2 billion, which is expected to be booked progressively from the financial year ending 31 March 2022," Kariuki said.
Sh 3.7 billion had been collected as cumulative deposits, with Sh7.8 billion being the cash due on the pre-sales.
The deposits collected are accounted for as deferred revenue liabilities on the balance sheet, with the revenue being recognised in the income statement when construction is completed, the unit has been handed over to the buyer and is fully paid for.
“We expect the significant proportion of the Sh 11.5 billion, together with new sales from the current projects, to be recognised progressively over the next two financial years,” Kariuki said.
Kariuki said they on course to completing construction of 524 homes in the financial year ending 31 March 2022 and a further 1,426 in the subsequent financial year.
"The revenue potential of this total pipeline is KES 17.9 billion, which can be expected to reflect in our income statement progressively from the financial year ending 31 March 2022,” Kariuki added.
The Group’s total assets amounted to Sh 40 billion as at 31 March 2021, funded by shareholder equity of Sh 23.4 billion and Sh 6.7 billion in borrowings.