Affordable housing and memorial parks developer Calgro M3 has flagged a rise in profit in its next annual results as it completed and handed over 3,000 new residential property units.
The company, valued at R376m on the JSE, said in a trading statement that headline earnings per share (HEPS), a common profit measure in SA that excludes certain items, will rise 40%-50% to 147.90c-158.46c, and earnings per share 36.4%-46.4% to 147.95c-158.80c for the year to end-February.
“The group is pleased to report a strong performance driven by the successful completion and handover of 3,186 opportunities during the current year in the Residential Property Development segment, which is in line with expectations,” the company said.
Calgro M3 specialises in residential developments, including subsidised, social housing and Grassroots Affordable People’s (GAP) housing. The prices of residential start from R499,000, while prices can go up to R1.2m for free-standing homes.
Some of the projects include Belhar CBD, Fleurhof, Jabulani Precinct, La Vie Novelle, Scottsdene, Maitland, South Hills and KwaNobuhle.
The residential property development segment of the business, which currently has 2,719 units under construction, generates the bulk of profit with the memorial parks bringing in a sliver.
Business Day reported in November that memorial parks such as Fourways and Durbanville, which predominantly sell family estates, have seen a significant slowdown in reservations.
Higher vaccination rates, less lethal Covid-19 variants and stricter hygiene practices have reduced the number of deaths and consequently burials, resulting in fewer sales.
The company’s interim results are expected to be published on May 15.
With Denise Mhlanga
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