Property management firm Icon Properties plc says given Malawi’s economic outlook coupled with declining interest rates, prospects are high the listed firm will continue to deliver positive results.
The firm’s board chairperson Vizenge Kumwenda said this in an interview on the sidelines of the firm’s first annual general meeting (AGM) in Blantyre on Tuesday where the company unveiled its results for the year-ended December 31, 2018.
In the year under review, the property firm registered a K1.2 billion after tax profit for the two months period ended December 31 2018 and a K2.52 billion after tax profit in the half-year ended June 30 2019.
“With property companies, if things in an economy are going well, the outlook is reasonably predictable. In our case, we have a strong diverse property portfolio located in prime sites in all centres of the country. In terms of letting, we are over 90 percent rate. That is an indication that we will continue to perform well.
“In the first half of this year, we have also performed very well and the outlook is that the company will continue on that path. Worth highlighting is that besides our existing portfolio, we want to develop new properties,” said Kumwenda.
He said the company is working hard to ensure that it comes up with projects to build within 12 months.
“When we listed the company, we raised K14 billion that needs to find a home. We are going to utilise this money to build these projects. We raised those funds for the purpose of growing the company and growth will come in form of buying new and developing properties,” said Kumwenda.
One of the shareholders, Duncan Njirammadzi, expressed satisfaction with the performance of the company, but urged directors to engage an extra gear in marketing the company.
He said: “We are impressed to see that the company is posting exceptional results in few months of its operations. We are, however, concerned with the minimal efforts to increase the visibility of the company saying most investors are unaware of activities of firm.”
In response, Kumwenda admitted that there has been minimal information about the company, saying the board has undertaken to work on marketing the company.
“With properties, they do exceptionally well at times when interest rates are low. We will take advantage of this toomarket the company because the expectation is that the low rates will excite investors to invest in properties,” he said.
Icon Properties plc was incorporated in Malawi as a private limited company on June 4 2018, but started its activities on November 1 2018.
It listed on the Malawi Stock Exchange (MSE) on January 21 this year, breaking MSE’s 10-year listing drought.
Icon acquired 75 percent stake in Kang’ombe Investment Limited, 100 percent in Chichiri Shopping Centre Limited, Lilongwe City Mall Limited and Nico Properties Limited.