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Dawn Properties boost FY revenues

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Zimbabwe Stock Exchange-listed property firm Dawn Properties Limited posted a 117 percent jump in revenue for the year to December 31, 2018 to US$11,2 million from US$5,1 million realised in the prior comparable period in 2017.

Net profit after tax steadily grew by 16 percent to $3 ,5 million from the US$3, 05 million posted in the prior comparable period as operating profit went up by US$661 810 to US$4 ,9 million from US$4,3 million last year.

The steady growth was credited to mixed portfolio performance as overall properties performed better than 2017 by 36 percent stemming from rentals which were increased by 46 percent at Elephant hills hotel and conference while Troutbeck resort and Holiday inn Mutare increased by 40 and 36 percent respectively.

Rentals revenue surged to US$4 million from US$3 million in the prior year a 33 percent growth.

Said Dawn Properties:

“The increase was mainly attributable to recognition of the property development income coming from our first development in Marlborough and a stronger performance from the property investment portfolio.”

Operating expenses also went up 44 percent to US$4, 4 million compared to US$2, 9 million realised same period last year.

Management attributed the increase in expenses to the hyper inflationary environment that rocked the country in the fourth quarter of 2018 and refurbishments carried on some of its properties.

“The significant increase came on the back of general increase in costs in line inflationary pressures experienced in 2018 and renovation work in some of the property investments including Blue swallows in Inyanga,” said management.

As at the end of the period under review, Dawn Properties had a total debt of US$3 million mainly due to resources which were deployed towards the construction of 58 residential cluster units in Marlborough as well as the purchase of 2,2 hectares of land within Harare Gardens from Harare Municipality.

Basic and diluted earnings per share grew by 0,02 cents to 0,14 cents form 0,12 cents.

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