WESTPROP Holdings Limited has recorded a decline in profit after tax to US$18,25 million for the year ended December 31, 2024, due to lower fair value adjustments on its investment property and rising operating expenses amid an expansion drive.
In the comparable year, profit after tax was US$39,42 million.
During the period under review, the group recorded lower fair value adjustments on investment property of US$18,84 million, nearly 62% down from the prior year.
However, the decline in the fair value adjustments on investment property was attributed to the real estate market shifting into a more stabilised phase on the back of a more stable domestic currency introduced in April.
“Despite strong top-line growth, profit for the year decreased to US$18,26 million, compared to US$39,43 million in 2023,” WestProp chairperson Michael Louis said in a statement attached to the company’s financial results for 2024.
“This decline is mainly attributable to the lower fair value adjustments on investment property, as well as increased operating expenses (up to US$8,64 million, from US$5,18 million) in line with the group’s expansion strategy to scale up and enhance sales, and the resultant pipeline has been increased to US$175 million, as well as key acquisition and investments in new subsidiaries.”
During the period under review, the group experienced an 80% increase in revenue to US$29,04 million from the prior year.
“This growth was driven primarily by Pomona City Residential Estate, which contributed US$15,61 million, followed by Pokugara Residential Estate at US$9,42 million and Millennium Heights at US$4,02 million,” Louis said.
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“The higher revenue reflects increased demand for residential real estate and successful progression in project execution.”
In 2023, the firm launched its Pomona City and the Millennium Heights residential developments.
The firm’s other developments include Pokugara Residential Estate, The Mall of Zimbabwe, Millennium Heights Office Park and the Hills Luxury Golf Estate.
“Total assets increased substantially from US$183,16 million in 2023 to US$213,51 million in 2024, driven by growth in investment properties and associates,” Louis said.
“Investment properties accounted for US$158,47 million, signalling a continued focus on asset expansion.”
He said the company had shown a healthy financial position, with increased current assets—including trade and other receivables growing to US$25,06 million—indicating robust business transactions.
“Looking ahead, the group adopts a cautiously optimistic outlook and remains dedicated to delivering on its promises,” Louis said.
“It will continue to persevere, perform and drive value growth for shareholders and its customers, ensuring mutual benefits for all stakeholders.”
