Migaa golf estate- home afrika

Listed property firm Home Africa is looking to secure a strategic investor according to the company’s managing director Dan Awendo.

Financial statements of the company for 2019 show that the group reported a Ksh. 95 million pre-tax loss which was 31.6% less in comparison to Ksh. 138 million reported the previous year.

The company reported a lower post-tax loss of Ksh. 77 million in the half-year of 2019 compared to a loss of 112 million in 2018, a decrease of 31.2%

In the financial report summary, the company said that it expects Migaa Golf Estate, being a long-term project, to realize its profitability towards the end of the project in 3- 4 years’ time.

The company’s accounting policy is to carry the proceeds of the project are as current liabilities under differed income in the balance sheet.

The firm said that deposits from the sale of plots in the project had reached Ksh 2.8 billion as of June 30th, 2019 compared with Ksh 2.6 billion for the previous year. The company expects to convert the amount to revenues in its statement of profit or loss as the percentage of project completion improves over the next 3- 4 years.

Book value of the group’s sellable land and other inventory stood at KSh. 3.7 billion in 2019.

“We continue to invest in the infrastructure of the various projects which will help improve the market value of the land bank as the land becomes more desirable,” said the report

The firm’s financials also revealed that the company had accumulated negative earnings of Ksh. 1.44 billion in 2019, an increase from Ksh. 1.36 billion in 2018.

The firm is currently weighed down with liabilities topping over Ksh. 5.6 billion of June 2019. Home Afrika’s share price is currently trading at Ksh. 0.53, a 95.7 percent discount to par value.

Listed property performance on the Nairobi Stock Exchange has had a dismal record with most listed real estate firms unable to improve shareholder value. Stanlib is in the process of off-loading Fahari-I REIT to ICEA Lion Group after shedding massive shareholder value.

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