One to watch: This South African property small cap is gaining momentum

Small-cap property developer Calgro M3 says it anticipates a substantial increase in both earnings per share (EPS) and headline earnings per share (HEPS) for the year ended February 29, 2024, compared to the previous corresponding period.

EPS is expected to rise by at least 20% to a minimum of 184.04 cents, while HEPS is forecasted to increase by at least 20% to a minimum of 183.82 cents.

This growth is attributed to prudent capital allocation and strong operational performance across the group's divisions.

Calgro M3 achieved a reduction in issued share capital through a share repurchase programme, further contributing to the positive financial outlook.

The company specialises in the development of affordable housing, often in partnership with government initiatives and other stakeholders. Calgro M3 is known for its innovative approach to sustainable urban development, incorporating features such as green building practices and community amenities into its projects.

The property specialist is known for its innovative approach to sustainable urban development, incorporating features such as green building practices and community amenities into its projects.

The group also develops mid- to high-end retirement estates, and it owns and operates five memorial parks (cemeteries).

The company's financial report for the year ended February 2023 showcased impressive growth, with profit after tax surging 40.8%, to R186.2 million. This significant growth underscores Calgro M3's resilience and effectiveness in navigating the challenging economic landscape.

The company also recorded a notable increase in revenue, up 15.4% compared to the previous fiscal year, while the group identified a revenue pipeline for its Residential Property Development business of R15.9 billion - more than 22 000 opportunities.

Investor sentiment towards Calgro M3 has been notably positive, reflected in the strong growth of its share price.

Over the past year, the company's share price has surged by R2.10, marking an impressive 77% increase, and has continued to climb by nearly 15% year-to-date in 2024.