HARARE – Increased property income largely from hotels and Timeshares drove Dawn Properties’ revenue for the five months of 2018 to $2.2 mln which was a 27% increase from same period last year.
During the period, income from owned assets was 33% higher at $1.26 mln compared to same period last year.
Giving a trading update at the company’s annual general meeting, managing director Patrick Matute said trading conditions improved significantly for tenant African Sun while Timeshare revenue also increased.
“African Sun had a better than expected performance in what is traditionally their low peak period. Our timeshare revenue continues to increase as we focused more on improving the product and visibility in the market through increased marketing efforts,” he said.
In terms of the hotel improvement plan, Matute said that at Amber Mutare, the company undertook to replace the guest elevators at the property in Mutare and the work will be completed at the end of July 2018.
“Further, African Sun is currently doing a major soft refurb on all the rooms to meet IHG standards for the Holiday Inn brand. We will continue to identify new hotel improvement projects, jointly with the tenant, so as to position our properties as the go to destination for hospitality,” he said.
The consultancy business saw Dawn Property Consultancy recording a 21% increase in revenue at $951,800 compared to same period last year.
Matute said the business performance was attributed to business process re-engineering in both the property management business unit and valuation advisory services.
During the period under review, fee income from property management increased 9% despite the market wide challenges.
Fee income from valuation advisory services was up 13% compared to same period and Matute said the unit will continue to place more emphasis on corporate clients and drive growth through long term client management.
Meanwhile, Matute said the group’s profitability for the remainder of the year is expected to be driven by property development, as it starts to recognize sales from the Elizabeth Windsor Gardens development, good performance from the timeshare rentals and an increase in rentals from African across all properties.
Matute said the group has witnessed good business momentum during the opening months of the year, as a result the company is optimistic of the medium to long term prospects.
“In the short term, priority will be to consolidate the existing performance while continuing to explore new areas of growth in both hospitality assets and residential property development,” he said.
At the AGM directors fees were approved at $96,825 while audit fees at $80,245. – FinX