Centum Real Estate Limited, a subsidiary of Centum Investment Company, forecast weaker earnings for the fiscal year 2022.
The company expects its unaudited financial results for the year ended March 31st, 2022, to be at least 25 per cent lower than reported in the comparative year in 2021.
“The decline in performance is primarily due to lower revaluation gains on investment property in the year ended 2022 compared to those posted in the year ended 2021,” it said in an emailed statement.
Accordingly, IFRS requires companies that hold investment property to conduct independent annual revaluations of their investment property and to pass gains or losses through their financial statements.
As it advances, Kenneth Mbae, the Managing Director, says they expect a significant increase in completed sales of residential units relative to the prior fiscal year.
“In the current financial year, we expect to complete substantial investment property sales at a significant value uplift to the original cost and in line with the current valuation.”
Centum Real Estate reported a Ksh650.4 million net profit in the year ended March 31, 2021, from Ksh2.29 billion in a similar period in 2020.
The Company’s primary business is selling investment property and residential units.
In 2021, Centum Investment Group posted the first full-year loss in over 42 years, weighed down by a drop in sales and investment income that failed to stop it from paying dividends.
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