PUBLIC-LISTED Dawn Properties (Dawn) foresees growth in the second half of the year mainly driven by property development and increased rental yields from its hotel and hospitality business unit.
BY FIDELITY MHLANGA
The property consulting company made the projections in the financial report for the period ended June 2018.
During the review period, Dawn posted a profit after tax of $942 177, about 9% up from $90 442 recorded in the same period last year.
“The group’s profitability for the remainder of the year is expected to be driven by property development as we start recognising sales from the Elizabeth Windsor Gardens development, good performance from the timeshare rentals and an increase in rentals from African Sun across all our properties,” the company’s board chairman Phibion Gwatidzo said.
During the period, revenue closed at $3,08 million, a 35% increase from $2,2 million recorded in the comparable period in 2017.
Operating profit surged to $1,5 million from $685 586 during the period under review. Total income grew 35% to $3,1 million from $2,3 million last year.
Group operating expenses declined 2,5% to $1,6 million compared to the same period last year.
During the period under review, the group expensed renovation costs relating to Blue Swallow lodges in Nyanga.
Dawn reported that African Sun, its tenant, was currently doing a major soft refurbishment on all rooms to meet InterContinental Hotels Group standards for the Holiday Inn brand.
During the period under review, the hotel portfolio performed above expectation as Africa Sun enjoyed improved trading conditions during a traditionally low-peak season.
All business units within the property consultancy business posted growth in revenue and volume of business compared to last year.
“The business unit continues to be resilient despite a tough operating environment in the property management business, driven by increased voids and downward pressure on rentals,” Gwatidzo said.
The company’s property development unit constructed 58 cluster houses at Elizabeth Windsor gardens, which is now compete. By the end of June 2018, 31 units had been sold.
Dawn plans to roll out an additional residential housing project on one of its land banks in Harare.