Westprop declares US$857K dividend from Q1 operations

PROPERTY developer, WestProp Holdings Limited (Westprop) has declared a dividend of US$857 143 for its first quarter performance ended March 31, 2024, owing mostly to sales of its Pokugara Residential Estate townhouses.

During the period under review, revenue increased to US$7,03 million, marking a growth of 11,54% compared to the comparative period last year.

Seventy-two percent of this revenue was attributed to the group’s Pokugara Residential Estate townhouses, which generated US$5,05 million in sales.

Westprop’s developments are Millennium Heights, Pokugara Residential Estate, Pomona City (ongoing), The Mall of Zimbabwe, Millennium Heights Office Park and the Hills Luxury Golf Estate.

In a trading update for the first quarter ended March 31, 2024, WestProp finance director Simbarashe Kadye said they were cautiously optimistic about their future performances.

“The board of directors declared a dividend of US$857 143 for Q1 2024, to be distributed to ordinary shareholders from the retained earnings. A separate dividend notice with details of payment will be published to this effect in accordance with the group’s Articles of Association and Victoria Fall Stock Exchange listing,” he said.

“Westprop Holdings has identified several significant projects planned to run concurrently throughout 2024. Notably, the group has initiated the development of two multi-billion-dollar projects Pomona City, a visionary ‘City within a city’, and The Hills, an esteemed premier golf estate.”

Last month, the property developer initiated the development of two of its multi-billion-dollar projects, namely Pomona City and the Hills Luxury Golf Estate during the period, with sale of residential stands are already ongoing.

The Hills Luxury Golf Estate will see the construction of a world-class golf course, villas, apartments, townhouses, country club, hotel, tennis and swimming academy and shopping mall, using the “city within a city” concept.

Regarding Pomona City, this is a project sitting on 273 hectares of land that will have hundreds of residential properties located in the northern part of Harare.

Kadye said civil works were ongoing at the Hills Luxury Golf Estate and that the firm injected US$10 million in building the golf course.

“Moreover, the group plans to complete the infrastructure for Pomona City sections 1B & 1C in Q3, followed by the launch of Pomona flats in Q4 this year. The remaining phases of the US$4 billion city are set to be unveiled by Q1 2025,” he said.

“The group remains confident that its diversified portfolio and strategic initiatives have positioned it favourably to leverage emerging opportunities while effectively mitigating potential risks.”

However, Kadye said the group’s operating profit decreased by 14,3% to US$1,66 million during the period from the comparative year.

“The decline was primarily driven by the rise in operating expenses, a trend that we anticipate to align with our projected sales growth of US$50 million by the end of Q4 2024,” Kadye said.

He said operating expenses rose 26,97% to US$1,36 million during the period under review compared to the previous quarter.

“The increase reflects the significant expansion in the group’s operations as it prepares for upcoming developments scheduled for commissioning from Q2 onwards,” Kadye added.