Chronicle Editor
Business Reporter
Dawn Properties’ revenue for the six months to June 2017 jumped 23 percent to $2,278 million compared to $1,854 million on the back of improved performance from the group’s hotel properties. The property investments and property consultancy segments’ contribution to total revenue during the period was 58 percent and 42 percent respectively.
It’s property investment portfolio closed the period with a total revenue of $1,3 million on the back of improved rental yields, mainly from the group’s anchor tenant – African Sun Limited. Dawn chairman Mr Phibion Gwatidzo said prospects were brighter for the remainder of the year as the market gets into the peak season for holiday and leisure.
Total revenue for the property consultancy division amounted to $0,95 million with the property management division contributing 63 percent of this amount to group revenue. Mr Gwatidzo however bemoaned the challenging operating environment which weighed down the group’s earnings. The property industry as a whole has suffered low rental incomes due to increased voids and low demand especially in commercial and industrial properties.
“The market remains challenging, particularly property management, with increase in voids and reduced collections. The company will continue to invest in processes, systems and personnel so we can better service our clients in this challenging environment,” said Mr Gwatidzo.
Operating expenses amounted to $1,7 million from $1,2 million incurred in the same period last year due to expenses in renovating the Caribbea Bay Hotel. Dawn also finalized a tax dispute with the Zimbabwe Revenue Authority and recognised the outstanding penalties and interests amounting to $0,3 million.
Resultantly, the group recorded a 23 percent decline in pre-tax profit to $0,544 million. Profit for the period also fell 81 percent to $90 000 compared to $480 019 achieved in the same period last year. Cash and cash equivalence were down 66 percent to $238 404 from $396 610 as at December 2016.
Meanwhile, completion of the Elizabeth Windsor Gardens in Harare is expected in the second half of the year. Elizabeth Windsor Gardens is the group’s upmarket residential development comprising 58 cluster homes with two to three bedrooms.
To cushion itself from the challenging economic environment, Dawn will keep focus on widening revenue streams in property development and exploring ways of adding value to the existing property investment portfolios.
“We therefore remain excited about the group’s future performance,” said Mr Gwatidzo.
Online Reporter