Listed property management firm Icon Properties plc says in view of the gloomy economic outlook, it is restructuring some of its projects by delaying their commencement dates.
In a statement accompanying the 2023 Annual Report, the firm’s board chairperson Eric Chapola said the projects in the pipeline are in the commercial, hospitality and industrial real estate sectors.
“Once project structuring and following negotiations are complete, the company will work towards launching these projects,” he said.
But Chapola said there could be a turn-around if issues related to rising interest rates, challenging economic terrain, environmental and geopolitical shocks affecting both the global and local economy are resolved.
During the year under review, the company reported a 15 percent increase in profit after tax of K19.2 billion, a rise from K16.7 billion during the previous year.
The company generated K20.9 billion income, a decline from the previous year’s K22.8 billion, which included an increase in fair value of properties of K11.8 billion, a decline from K14.3 billion registered during the same period the previous year.
Commenting on the performance of the real estate in Knight Frank managing director Desmond Namangale said most real estate customers are shifting to modern property, which is associated with urbanisation, thereby affecting some players.
Meanwhile, Icon Properties plc directors have recommended a final dividend of K935.2 million, representing 14 tambala per share.
As at December 31 2023, the company’s investment property portfolio was valued at K96.1 billion. The firm has 35 commercial properties.
