Tourism recovery drives Dawn revenue

Tourism recovery drives Dawn revenue
Published: 06 September 2018
DAWN Properties Limited (Dawn) revenue from hotel property leases went up 30,6 percent to $1,52 million during the six months ended June 30, 2018 on the back of increased occupancy at the hotels as demand increased from foreign visitors.

The property investment firm said it expects performance at its tenant, African Sun, to improve as the group is currently refurbishing the hotel.

The group's profit after tax went up 942 percent to $942 563 compared to $90 442 reported in the previous prior period.

Dawn said it is currently banking on property development to anchor the group's profitability for the remainder of the year.

"The group's profitability for the remainder of the year is expected to be driven by property development as we start recognising sales from the Elizabeth Windsor Gardens development, good performance from the timeshare rentals and an increase in rentals from African Sun across all our properties," chairman Phibion Gwatidzo, said in a statement accompanying the group's financial results.

Dawn missed its target for the construction of 58 cluster houses at Elizabeth Windsor Gardens at Marlborough.

The group had sold 31 units as at June 30, 2018 and they expect the property development to anchor the group's profitability for the remainder of the year.

The consultancy business recorded a 47 percent increase in revenue to $1,40 million from $952 000 recorded in prior year.

"The business unit continues to be resilient despite a tough operating environment in the property management business, driven by increased voids and downward pressure on rentals," Gwatidzo said.

Fee income from property management was up 6,6 percent. Group operating expenses stood at $1,63 million, a 2,55 percent decline from the previous period.

Assets were marginally up 1,1 percent to $99,06 million compared to $97,98 million recorded in prior period.

Earlier this year, Dawn's plan to acquire Barclays Bank of Zimbabwe's Makasa Sun Hotel in Victoria Falls was put on hold as the bank's new shareholders are non-committal on the initial agreement.

The property, trading under African Sun's Kingdom Hotel, was valued at $14,6 million in June 2015 and Barclays had initially announced that it had sold its 50 percent stake in the hotel to Dawn Properties, which was to pay $7,5 million within 30 days of concluding the transaction on the conditions precedent from which selling costs would be paid.

Sources have indicated that the new Barclays shareholders are now considering an offshore investor for the transaction.
- fingaz
Tags: Dawn,


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