Other footnotes to the results...

63% profit before tax dropeed to 33% growth in EPS because of a larger than proportional growth in tax.

Non-interest income recorded a one-off 382% gain owing to sale of real estate investment

Non-performing loans rose 37%. NPL ratio is at 8.9% compared to 5.0% industry average. NPL coverage ratio worsened to 17.3%, still the lowest in the market by a wide margin.

Could it be that the NPL and inadequate provisions for them is actually showing a higher pbt than actual. I.e abit of cooking the figures?

To me the profitability of hfck and the projects they are involved in with their new subsidiary shows a growth company whose share price should be higher

Unless the true picture is not what the accounts show? ??

I bought at KShs 15.50.....so with a dividend of 1.75 thats more than 10% yield. I'll take my capital gain and look elsewhere but where is this elsewhere? Guess equity which will give 1.20 as per projection and being liquid might rally to above 38 unlike HFCK whose book closure and payment is quite long!

HF gets Sh620mn credit facility for housing project


The East African Development Bank has signed a Sh620 million credit facility with Housing Finance for the construction of Kahawa Downs Development Estate in Kahawa, Kiambu County.

Housing Finance has entered into a joint venture partnership with a land owner to develop the 220 housing units targeting the middle income market.

how much do they make from these deals. i saw they reported a profit of sh 302m mainly from sale of 162 units in Komarock

Housing Finance to open branches in East African Community by 2016
http://www.coastweek.com/3708-kenya-01.htm

HF Arm Pursuing Six Fresh Joint Ventures

Kenya Building Society, the developer arm of mortgage lender Housing Finance, is presently negotiating six joint ventures, three of which it hopes will crystallise this year.

The developer is already in two joint ventures two years into its revival after 13-year dormancy, raising HF's presence in the housing supply chain and boosting mortgage sales.

"We are negotiating about six potential joint ventures with big land owners and hopefully we'll close at least three in the course of this year," said Timothy Gitonga, HF's group business operations director.

The lender could not disclose the particulars on the joint ventures in the pipeline as yet, only saying they are "bigger" than the two it has entered into so far.

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HF's first JV was a Sh1.2 billion development in Riruta Satellite - christened Precious Gardens - sitting on 5.4 acres. KBS contributed equity of Sh186 million, with construction being co-financed by HF and pan-African housing lender Shelter Afrique. It will have 328 units of 1-3 bedrooms.

Kahawa Downs on Thika superhighway is the latest where it broke ground in November. It is valued at Sh1.5 billion and will offload 220 units of two- and three-bedroom. The homes are on offer for Sh5 million and Sh6 million respectively.

"This project is already more than 90 per cent sold-out in just over two months since we broke ground. This is testament of Kenyans' trust in us and the pent-up demand in the market," Ireri said.

The lender aims to be "a one-stop-shop" for housing solutions, he said, hence its involvement in the entire property supply chain.

KBS will break ground for a new development within two months on a 7.5-acre parcel of land in Nairobi's Komarock. HF has another 33-acre parcel in the same location and is drawing a master plan for development.

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http://allafrica.com/stories/201402260565.html

fully agree. My only concern is whether they have realistic provisions for NPLs. i hope so otherwise fully agree

9th may payment 30th may

Housing Finance is seeking to create new shares in a drive that analysts say is intended to lay the basis for increasing the home lender’s capital base.

In a notice sent to shareholders, the financier is seeking approval to increase its authorised share capital from 236 million to 500 million during an annual general meeting scheduled for April 25, 2014.

http://www.businessdaily...12/-/ttxs4o/-/index.html