Profit-after-tax for property holding company, Icon Properties, for the six-month period ended June 30 2021 increased by 45.5 percent to K3.1 billion from K2.1 billion.
The company attributes the performance to the increase of property revaluation gains which had improved over the current period.
According to a published financial statement, co-signed by Icon properties directors Dasford Kamkwamba and Sangwani Hara, total expenses for the group also increased to K1.15 billion from K1 billion as a result of inflationary pressures, spending on measures to prevent the spread of Covid and other property management-related costs.
“The group is in the process of completing two land purchases in Lilongwe to enable progress of some of the projects in the pipeline, and also in the process of concluding the sale of two properties based in Lilongwe and Blantyre, the proceeds of which will be reinvested into the property portfolio,” the statement reads.
It further indicates that despite the gains in profit, the Covid pandemic continues to have an impact on the company’s performance.
The group notes that some tenants showed signs of difficulties in meeting obligations due to the second wave of Covid and, although the company expects to remain competitive, rental growth is expected to be impacted due to the retail sector continuing to be adversely affected by the pandemic.
Icon, however, says despite the aforementioned challenges, they have formulated strategies to counter the effects of Covid.