Malawi Stock Exchange (MSE)-listed property development and management firm, Icon Properties plc, has posted a K7.4 billion profit in the first full year of its operation ended December 31 2019.
A statement accompanying financial statements co-signed by board chairperson Rob Scharar and director Dasford Kamkwamba shows that the firm generated K11.8 billion in income for the year, which includes, increase in fair value of properties of K4.1 billion.
Total expenses on the other hand stood at K2.3 billion during the year under review with property and administrative management fees, repairs and maintenance and utility costs as some of the major expense areas.
Looking forward, the firm observed that the effects of social distancing and several other measures put in place by authorities to slow the spread of the novel coronavirus may reduce economic activity and depress growth in the real estate sector.
Reads the statement in part: “The full impact of the pandemic cannot be fully ascertained; however, the group is closely monitoring the situation and taking necessary actions to limit any potential adverse effects.
“Cost containment will be key during the period of uncertainty whilst refining the plans for projects earmarked to create value for all stakeholders.”
The board has since proposed to pay a final dividend of K734 million, representing 11 tambala per share, bringing the total dividend for the year to K1.403 billion, representing K21 per share.
In October last year, the company also declared a total dividend of K668 million or K10 per share.
Icon Properties plc was incorporated in Malawi as a private limited company on June 4 2018 and started its activities on November 1 2018.
The 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.