Victoria Falls Stock Exchange listed property development company, WestProp Holdings Limited, has announced an 80% surge in revenue for the year ended December 31, 2024, climbing to US$29.05 million from US$16.09 million in the previous year.
According to the abridged audited consolidated financial statements, this substantial growth was primarily fueled by strong demand within its residential estates, with Pomona City Residential Estate being the largest contributor at US$15.61 million.
Pokugara Residential Estate and Millennium Heights also played significant roles, contributing US$9.42 million and US$4.02 million respectively.
The Group also reported a 90% increase in gross profit, reaching US$11.15 million compared to US$5.88 million in 2023.
A notable factor influencing profitability was an US$18.84 million fair value gain on investment property, although this was lower than the substantial US$49.51 million gain recorded in the prior year, indicating a more stable property valuation environment.
Despite the strong revenue and gross profit growth, the Group’s profit for the year saw a slight decrease to US$18.26 million from US$39.43 million in 2023.
The company attributed this primarily to the reduced fair value adjustments on investment property and an increase in operating expenses, which rose to US$8.64 million from US$5.18 million as the Group expanded its operations.
Profit before tax remained strong at US$23.60 million. Basic earnings per share stood at 61.86 cents, down from 131.42 cents in 2023, while diluted earnings per share decreased to 60.55 cents from 130.74 cents.
However, headline earnings per share increased from 4 cents in 2023 to 8 cents in 2024, highlighting the underlying profitability of the core business.
Total assets for WestProp increased significantly to US$213.51 million in 2024, up from US$183.16 million in 2023, driven by growth in investment properties and associates. Equity also saw a substantial rise to US$151.73 million from USD 135.86 million, reflecting strong retained earnings.
The Group declared dividends amounting to USD 2.40 million for 2024.
“Recognising the importance of shareholder returns, the Group declared dividends amounting to USD 2.40 million for 2024, reflecting the board’s commitment to balancing reinvestment for growth with rewarding shareholders for their confidence in the company.
“The Group maintains a healthy dividend policy, ensuring shareholder returns while reinvesting in strategic assets. Given the strong financial performance, dividend payouts are expected to remain stable, supporting investor confidence.
“The Group will issue a full dividend announcement in due course,” Board Chairman Michael Louis stated.
Louis acknowledged the dynamic operating environment in Zimbabwe, characterised by fluctuating inflation and evolving exchange control regulations.
He noted the projected steady growth of Zimbabwe’s economy, fueled by mining and agriculture, and the government’s tight monetary policy aimed at stabilizing the economic landscape. Louis also highlighted potential challenges arising from new property tax policies.
“On the fiscal side, policies aimed at increasing tax revenues, particularly property taxes have introduced significant challenges. The 2024 budget. initially proposed a 1% Wealth Tax residential properties valued at USD 100,000 or more later adjusted to USD 250,000 following stakeholder feedback.
“These tax measures may also influence real estate investment trends and property values, creating a dynamic landscape for investors. Despite these challenges, the Group has successfully adapted to strengthening its presence in the middle-class market while leveraging gains from investment properties.
“The Group’s ability to navigate these macroeconomic changes while identifying and capitalizing on growth opportunities underscores its resilience, adaptability, and strategic acumen within a dynamic environment,” the company stated.
Looking ahead, WestProp said it remains optimistic about leveraging opportunities in the real estate sector, with ongoing investments in residential and commercial properties.
The Group is making significant progress towards its “One Billion Bricks by 2050” vision, with 84 million bricks recorded to date.
Key projects such as The Hills Lifestyle Estate, Pomona City, and Millennium Heights are advancing, with new developments including the launch of the Millennium Heights Aparthotel under a REIT.
The Group has also invested in a glass and aluminium fabrication plant (Trust Prap Aluminium) and a brick-moulding factory (BrickFusion Manufacturing) to enhance efficiency and quality.
Furthermore, plans for Zimbabwe’s first regional mall, “The Mall of Zimbabwe,” are progressing, with groundbreaking anticipated by year-end in partnership with Exemplar.
