WestProp sees resilient performance in Q1 2024 Mr Kadye

Business Reporter

Listed property firm WestProp Holdings Limited remained resilient during the first quarter of this year driven by improved sales, albeit in a challenging environment.

The period to March 31, 2024, was characterised by a challenging operating environment following a surge in inflation, which peaked at 55,3 percent, and heightened volatility in the exchange rate.

“Despite these challenges, Westprop Holdings remained resilient and navigated the economic downturn with the support of our loyal client base, achieving positive sales growth compared to the same quarter in the previous year,” said group finance director Mr Simbarashe Kadye.

According to the group, first quarter revenue jumped 11,54 percent to US$7 million compared to US$6,3 million recorded during the same quarter in the prior year.

Notably, 72 percent of this revenue was attributed to the group’s premium development, Pokugara Residential Estate Townhouses, generating US$5 million in sales.

However, operating expenses for the period surged by 26,97 percent to US$1,36 million compared to US$1,07 million from the previous quarter

“This increase reflects the significant expansion in the group’s operations as it prepares for upcoming developments scheduled for commissioning from Q2 onwards,” said Mr Kadye.

During the review period, the Victoria Falls Stock Exchange (VFEX) listed group achieved an operating profit of US$1,6 million which was a decrease of 14,3 percent from US$1,9 million in the same quarter of the previous year.

Mr Kadye said the decline was primarily driven by the rise in operating expenses, “a trend that we anticipate to align with our projected sales growth of US$50 million by the end of Q4 2024.”

A market-based valuation of the group’s land banks, inclusive of its 70 percent interest in Sunshine Development Private Limited, revealed an aggregated fair value of US$250,9 million at the beginning of the quarter under review.

This valuation represented a 12,32 percent gain from US$223,3 million reported at the end of the same quarter in the prior year.

Meanwhile the group has identified several significant projects planned to run concurrently throughout 2024. Notably, the Group has initiated the development of two multi-billion-dollar projects — Pomona City and The Hills, an esteemed premier golf estate.

These developments are currently in the planning and implementation phases, with ground-breaking for The Hills scheduled for second quarter, along with civil works and a US$10 million upgrade of the Golf Course taking place concurrently in 2024

Westprop Holdings will also officially launch its Millenium Heights during the same quarter as the state-of-the-art Gatehouse in Q2 2024, with Block 3 scheduled for handover the following quarter.

The group is upbeat that its diversified portfolio and strategic initiatives have positioned it favourably to leverage emerging opportunities while effectively mitigating potential risks.

WestProp declared a dividend of US$857,143 for the quarter.

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