Centum Real Estate posted a Ksh.1.1 billion revenue from the sale of houses in six months to September 30, 2021.
The company’s revenue growth is attributable to strong sales that helped to record over Ksh.144 million gross profit from residential units in the first half of this year.
“Our current projected pipeline has a profitability level of Ksh.4 billion, out of which we have recorded Ksh.260 million in our income statement. The balance of Ksh.3.7 billion will be recognised progressively moving forward as we complete the projects and handover the houses.”
The company further recorded Ksh.172 million in revenue from sale of development rights while announcing to have sold a total of Ksh.5.5 billion in development rights on its land banks. Its only managed to collect Ksh.3.6 billion in cash.
The half-year numbers show Centum Real Estate’s balance sheet is now valued at Ksh.40.9 billion, comprising Ksh.28.6 billion investment property, half a billion shillings’ worth of completed residential units, Ksh.6.6 billion houses under construction, Ksh.1.4 billion cash and cash equivalents, and Ksh.3.6 billion shillings other assets.
The firm has made significant progress on both fronts in Kenya and Uganda as evidenced by the quantum and value of development rights, sales, size of residential projects pipeline and sales, cash collections and receivable on sales.
Centum Real Estate is currently holding 8,400 acres out of a total holding of 10,639 acres in 2019, representing sales of 2,239 acres in two years.
Centum Real Estate was incorporated last year as the subsidiary housing the bulk of Centum PLC’s real Estate.