National Housing Enterprise records N$22.5-million profit for 2024/25

The National Housing Enterprise (NHE) has reported a net profit of N$22.5 million for the 2024/25 financial year — a significant increase from the N$6-million profit recorded in the previous period.

Speaking at the entity’s recent annual general meeting, NHE board chairperson Toska Sem said the improvement in profitability was largely driven by a N$61-million recapitalisation from the government, which supported the organisation at a time when its core revenue streams came under pressure.

Total revenue declined by 15% to N$195 million, mainly due to a sharp drop in housing unit sales, which fell from 455 units in 2024 to 231 units in 2025.

“The enterprise’s performance has improved significantly over the past two years, with NHE recording a profit of N$23 million for the 2025 financial year, compared to N$6 million in the previous year,” Sem said.

She noted, however, that profitability continues to be constrained by rising impairments on advances, which increased from a total provision of N$149 million in 2024 to N$164 million in 2025, representing an increase of N$15 million, or 11%.

Despite these pressures, the NHE’s rental portfolio remained a stable contributor to performance, achieving a 97% occupancy rate during the reporting period.

The financial year also saw increased spending aimed at strengthening the organisation’s internal capacity. Operating expenses rose by 18% to N$178 million, up from N$152 million in the previous financial year.

Key cost drivers included employment expenses, which increased by 17% to N$95 million as the enterprise filled critical executive and vacant positions.

Professional fees also rose sharply by 64% to N$10 million, reflecting investments in the integrated strategic business plan and a culture change programme.

“Operating expenses increased from N$152 million recorded in the 2024 financial year to N$178 million in 2025, representing an increase of N$27 million, or 18%, from the prior year,” Sem said.

The NHE’s loan book grew by 3.6% to N$1.142 billion.

While management reported an increase in non-performing loans amid ongoing economic pressures on customers, cash receipts generated from the loan portfolio remained sufficient to cover the enterprise’s day-to-day operational expenses.

“The enterprise has observed a steady rise in non-performing loans and impairment ratios over the past two years. Continued uncertainty and volatility in the economic environment throughout 2025 have contributed to the deterioration in the quality of the loan portfolio,” she said.

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