- Contracts worth US$6.48 million secured
- Pomona City Properties contributed 58% of the total contracts
- Pokugara Residential Estate contributed 20%
- Millennium Heights contributed 23%
WestProp Holdings, a prominent real estate company's customer contracts have surged by 35% contributing an increase of 11% to its year-to-date revenue in a trading update for the period ended 30 September 2024.
Contracts growth in real estate companies refers to the increase in the value and number of agreements related to property sales, leases, or developments, indicating a company's expanding market presence and financial performance.
The increase in contracts was primarily driven by the performance of Pomona City Properties, which contributed 58% of the total contracts. This was followed by Pokugara Residential Estate and Millennium Heights, contributing 20% and 23%, respectively.
As a result, WestProp secured contracts worth US$6.48 million, bringing the year-to-date total to US$18.6 million for the period under review.
The launch of Pomona City Flats has significantly boosted Pomona City Properties, which contributed the largest portion of the contracts at US$3.7 million, marking a 68% increase compared to the previous year.
Meanwhile, Millennium Heights is now over 80% sold out, with Block 5 currently selling off-plan construction is expected to commence by Q2 2025. Additionally, the Mall of Zimbabwe is set to break ground on this long-awaited project in 2025.
In compliance with IFRS 15, WestProp recognizes US$4.2 million as revenue based on a stage of completion assessment.
The Group also experienced a 5% improvement in its gross profit margin, rising from 46% in Q3 2023 to 51% in the current period. This enhancement is primarily attributed to strategic investments in freehold property, plant, and equipment, along with cost-cutting measures achieved through insourcing.
However, operating expenses for the quarter increased by 29%, from US$1.2 million to US$1.5 million compared to the same period last year, indicating an expansion drive by the Group.
Looking ahead, ''Adopting a positive optimistic approach ,the Group is confident that its diversified portfolio and strategic initiatives have strategically positioned positioned it as the martet leader in a real estate enabling it to capitalize on emerging oppotunities while effectively mitigating potential risks.The Group expects to onboard potential investors for its Mall of Zimbabwe project before the end of 2024''.
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