Icon records K1.2 billion profit in two months
Malawi Stock Exchange (MSE)-listed property development and management firm, Icon Properties, registered a profit after tax of K1.28 billion for the two months period ended December 31 2018.
A statement of the company’s financial results for the period shows that the company generated total income of K1.44 billion and total assets stood at K72.8 billion as at December 31 2018.
Although Icon only operated for two months, the investment held by Icon was in operation for much longer.
Average occupancy rate across the property portfolio was above 90 percent throughout the reporting period.
“The company generated total income of K1.44 billion for the two months period which includes increase in fair value of investee companies and properties of K516 million.
“Total expenses for the period were at K631 million, the major item included in this figure were pre-listing and listing expenses, property management fee and property operating costs which amounted K452 million,” reads part of the statement.
Icon Properties plc was incorporated in Malawi as a private limited company on June 4 2018 and commenced its activities on November 1 2018.
The newly-formed company has 35 properties with a total lettable area of 72,630 square metres.
On November 1 2018, the company acquired the shareholding of various property companies, namely, Kang’ombe Investment Limited (75 percent), Chichiri Shopping Centre Limited (100 percent), Lilongwe City Mall Limited (100 percent) and Nico Properties Limited (100 percent, as well as various direct properties in exchange for shares in Icon properties.
Its shareholding comprises 16 firms with Nico Life Insurance Company Limited, Standard Bank Pension Fund and National Bank of Malawi Pension Fund, owning 63.17 percent, 10.33 percent and 7.8 percent, respectively.
At the beginning of the year, the firm issued 1.68 billion shares through which it hopes to raise K14.7 billion through initial public offering on the MSE.
Looking forward, the firm says the property market continues to remain stable and declining inflation levels may lead to growth in the short to medium term.
“The company is poised to maintain good performance throughout the year 2019,” says the firm in the stament.
Speaking in an interview recently, Icon properties director, Vizenge Kumwenda, touted the company’s “solid high quality portfolio” saying it is performing well.