Buy HF and Sell Portland
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Interestingly, in the financial period, the real estate arm of HF, HF Development and Investment completed and sold 500 residential units in Komarock 5B, Precious Gardens Phase 1, Kahawa Downs, a retail commercial property known as K-Mall.
The development arm also initiated the construction of Komarock Heights Phase 1 development project which will comprise of 480 residential units.
Following the profit jump, HF announced a final dividend of Sh0.65 per cent, which brought the firm’s dividend payout for the 2015 financial period to a total of Sh1.3 per share.
Mr Maina says HF is entering a high growth phase boosted by the bank’s strategy of becoming a top tier bank by 2020 through corporate and retail banking, and mortgages.
BELOW FAIR VALUE
“Given its growth projects, the current price of around Sh20 per share is below its fair value and is recommended as a buy,” he says.