Cytonn profits drop by 82pc as investment projects triple - Capital Business
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Cytonn profits drop by 82pc as investment projects triple

The Alma – a Sh3 billion project – is one of the real estate projects the company is developing. Number of projects went up by 300 percent to 12 from three in 2015 while projects under mandate increased 85 percent to Sh74 billion./CFM

NAIROBI, Kenya, Mar 9 –  Cytonn Investments has posted an 82 percent decline in net profit to Sh116.1 million compared to Sh630 million profit they made in 2015.

The firm attributes the decline to heavy investments in the period as the firm‘s investment in real estate increased by 80.1 percent to Sh10 billion from Sh5 billion in 2015.

In the period under review the firm bought 25 percent stake in real estate developer Superior Homes to a tune of Sh1 billion, with the option of a further purchase over the near term.

“The decline in profits was due to a one-off item and changes in non-cash fair value gains. Adjusting for the one-off items and fair value gains the group made a profit of Sh322.5 million representing a 52.5 percent decline,” the firm said in a statement.

The firm posted an impairment loss of Sh95 million while finance costs went up to Sh98 million from Sh7 .2 million in 2015.

Revenue went up by 186 percent to Sh531 million while total assets hit Sh11 billion representing a 77 percent increase.

“Investment property in the development pipeline of Sh10.1 billion had gains of Sh535.2 million in 2016 which together with revenue growth of 186.1 percent highlights the attractive investment opportunity in real estate in Kenya and the region,” the firm explained.

Number of projects went up by 300 percent to 12 from three in 2015 while projects under mandate increased 85 percent to Sh74 billion.

The independent investment management firm has offices in Nairobi and DC Metro – USA with a focus on offering alternative investment solutions to individual high net worth investors.

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