Afriland Properties Plc as recorded revenue growth despite challenges according to its audited Financial Statement for the year ended December 31, 2015 with a dividend payment of 40 kobo per share.
Key extracts of the company’s financials reveal that total revenue grew by 24.10% to ₦1.35 billion from ₦1.09 billion Year-on-Year (YoY). Profit after tax (PAT) declined by 23.57% to ₦1.15 billion ($0.57mn) from ₦1.51 billion ($0.75mn) YoY.
The Company recorded increases of 87.5% and 53.19% in rental income and fees and commission respectively; these were major drivers of total revenue. Administrative expenses declined by 35.25% compared to previous year (2014) to give an improved operating profit which grew by 44.20% YoY. Finance cost soared in 2015 as a result of the provision for the Falomo Shopping Mall project.
Available for sale assets took amortization hit of N630 million as diminution in value of share investment. However, re-valuation gains on investment properties, rental income growth added to operating profit growth. Revised economic growth of 3.9% with significant investment in infrastructure (housing and power) are harbingers of future growth.
Real Estate Hedge on Rapid Inflation Growth Expenses were cut showing efficiency in operations to create value in bottom-line. CPI driven inflation tipped to 4-yr high in March to 12.8% following MPR reduction to 11% in Dec 2015.
It is gathered that the company intends to increase market share from the N6.5 trillion market value targeted to grow at 15% over the next decade. An overview of Nigeria’s macro-economic environment shows that rising interest rate and commodities prices may adversely affect infrastructure projects due to sensitivity to interest rates.
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