Real estate investments push Cytonn net profit up to Sh630.8 million

 

Cytonn Investments has posted a net profit of Sh630.8 million for the 2015 Financial Year driven by strong performance in the real estate investments.

An audited financial report released at Cytonn’s Annual General Meeting (AGM) has highlighted the company’s strong balance sheet, which currently has a total asset base of Sh 6.5 billion.

Cytonn delivered a return on equity of 42.7 per cent with a total equity at Sh 3.6 billion buoyed by the company’s diversified real estate portfolio and high yielding investment solutions, delivering robust performance built on a strong and efficient operational base.

“Our strategy to focus on the attractive alternative investment opportunities, which exist in Kenya and the region, drove our performance,” said Edwin Dande, Cytonn’s Chief Executive Officer.

“For any great firm, it is important to have great people, products, processes and a strong distribution platform, which we have now built at Cytonn. Our focus on real estate, private equity and structured products has delivered attractive returns to our shareholders, clients and partners,” he added.

He confirmed that Cytonn’s strong partnerships with global financing partners such as Taaleri of Finland, committed local partners, combined with a strong research capability further drove the firm’s profits during the period under review.

With Kenya’s annual housing deficit estimated at 200,000 units annually, Cytonn’s focus on delivering institutional grade real estate, encompassed by a platform with a strong brand and a focus on execution has driven the company’s total investment portfolio to 14 developments, and Sh 73 billion worth of projects under mandate.

Elizabeth Nkukuu, CFA and Cytonn’s Chief Investment Officer said the firm has over 1,200 acres under development, combined with a strong private equity pipeline.

“We are confident that with our unique strategy of coupling supply and demand will be a catalyst for growth in the market. Our fundamental objectives are to address the housing shortage, create employment opportunities, help in deepening of the capital markets, and play our part in the growth of our economy,” explained Nkukuu.

“For our shareholders and joint venture partners, 2015 was a great year, as can be seen by our financial performance. Cytonn has delivered great numbers, registering profits of Sh 631 million for the group,” said Prof. Daniel Mugendi, Cytonn’s Chairman.

“With the continued attractive investment opportunity in Kenya and the region, and with the committed team at Cytonn, I believe we shall continue to contribute to economic growth, creating jobs and improve the standards of living,” added Prof. Mugendi.

 

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