WestProp bouyed by high sales at Pokugara
POKUGARA Estate townhouse sales buoyed WestProp Holdings Limited’s first-half performance to June 2024, contributing 46 percent of the group’s total revenue.
The real estate group saw a notable surge in revenue, with a 77 percent increase to US$14, 3 million in the first six months of 2024 from the US$8 million realised in 2023, translating to a net gain of US$6,3 million.
Pomona City generated 43 percent of the group’s revenue from the sale of vacant stands. As it stands, it has sold nearly all of its available properties, demonstrating strong demand in the real estate market.
Seatrite Properties, which specialises in selling apartment residential units within the multi-unit Millenium Heights Blocks, contributed 11 percent of the overall revenue.
This comes as the real estate firm unveiled the Hills Lifestyle Estate, a US$280 million development, on March 3, 2024.
The launch garnered positive feedback from a diverse audience, including over 90 attendees in person and 200 participants online, many of whom were from the diaspora community.
In the said period, WestProp also managed to complete the Millennium Heights Block 3 project.
“The Group was able to produce good results despite challenges because of its diversified portfolio, improved liquidity and strong asset base.
“Our prime real estate development Pokugara Properties (Residential Estate Town houses) performed strongly surpassing other developments and contributing 46 percent of revenue through the sale of townhouses revenue,” said WestProp chairman, Michael Louis, in the half-year financials to June 2024.
On another development, WestProp hinted that it remains on track to launch Pomona City flats this year with an expected rollout of the rest of the US$4 billion city in the first quarter of 2025.
Despite being distracted by setbacks attributed to contractor resource allocation, WestProp said it is now on course to complete roads for Pomona City 1B and 1C in the remaining part of 2024.
Operationally, the group realised a net profit after tax of US$4,4 million in the reporting period, reflecting a noteworthy margin of 31 percent.
This marks a significant decrease of 471 percent compared to 2023 when the net profit margin was 313 percent.
The 2023 figure was heavily influenced by fair value gains recognised on the group’s investment property portfolio, leading to the skewed upward net profit margin.
Operating expenses for the half year decreased by 0, 6 percent to US$ 2,577,049 from USD 2,591,746 from the prior year.
According to WestProp Holdings the high operating costs in 2023 were mainly due to one-time listing requirements, which did not recur in 2024.
The group’s liquidity improved by 13 percent as WestProp held cash and cash equivalents amounting to US$3 million as of 30 June 2024, reflecting an increase from US$2,7 million in the prior year.
WestProp closed the half year with a healthy current ratio of 3.67 times indicating its ability to cover short-term obligations.
Total assets increased by US$34,1 million primarily driven by investment property fair value gains and investment in property plant and equipment.
The group’s equity grew by 22 percent to US$26,2 million with fair value gains on investment property playing a significant role.-ebsinessweekl
