- WestProp recorded a 54% decline in profit, falling to US$18.26 million for FY 2024, down from US$39.43 million in 2023
- The profit drop was primarily due to a 62% plunge in fair value gains on investment property
- Operating expenses surged to US$8.64 million, up from US$5.18 million, driven by expansion efforts, new subsidiaries, and acquisitions
Harare-WestProp Holdings, a prominent real estate company listed on the Victoria Falls Stock Exchange (VFEX) has recorded 54% decline in profit to US$18.26 million for the full year ended 31 December 2024 from US$39.43 million in 2023.
The profit drop stemmed primarily from a 62% plunge in fair value gains on investment property, which fell to US$18.84 million from US$49.51 million in the comparative period.
Operating expenses also surged to US$8.64 million from US$5.18 million, fuelled by the company’s expansion push ,new subsidiaries acquisitions, and a sales pipeline now at US$175 million.
‘’This decline is mainly attributable to the lower fair value adjustments on investment property, as well as increased operating expenses (up to USD 8.64 million, from USD 5.18 million) in line with the Groups expansion strategy to scale up and enhance sales and the resultant pipeline has been increased to USD 175 million as well as key acquisition and investments in new subsidiaries,’’ Company Chief Executive Officer Ken Sharpe said.
These costs have eroded margins, though profit before tax held firm at US$23.60 million.
Revenue grew to US$29.04 million from US$16.09 million driven by a strong demand for residential estates.
Pomona City Residential Estate led with US$15.61 million, followed by Pokugara Residential Estate at US$9.42 million, and Millennium Heights at US$4.02 million.
The company is strategically advancing its vision of reaching One Billion Bricks by 2050 with a robust project pipeline that emphasises both residential and commercial developments. This initiative is set to solidify the company’s market dominance.
The Hills Lifestyle Estate is currently under construction, featuring the Hills Championship Golf Course. This project aims to attract tourists and stimulate local economies through significant job creation.
In Pomona City, progress is swift. Phase 1A infrastructure comprising roads, drainage, and water systems is now complete, allowing clients to start building their homes.
Meanwhile, the Pokugara Residential Estate is making strides with Phase Two, which includes 69 luxury townhouses in a gated community and is anticipated to be completed by June 2025.
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