- Occupancy levels grew to 79.2%
- Rental income increased by 44%
- Property expenses were 17% down
Harare – Listed property concern, Mashonaland Holdings posted a growth in occupancy levels in the second quarter ended 31 March 2020 compared to the same period in the prior year.
In a trading update Mash Holdings said occupancy levels during the period under review grew to 79.2%, up 3% compared to the same period last year.
The company added that inflation adjusted rental income increased by 44% to ZWL20.1 million. The company attributed the performance to a positive impact of rent reviews during the quarter
The Company added that, “In line with market practice, the Group was reviewing rentals on a quarterly basis in an attempt to salvage value.”
Also, property expenses to revenue ratio for the quarter were 17% down compared to 18% registered in the prior comparable period in 2018.
The company added that administrative expenses to revenue ratio dropped by 26% in the second quarter compared with 31% which was achieved in the same period last year.
In addition, the company maintained its fair values on investment property that were determined at 30 September 2019.
The company said it spent ZWL472 000 on refurbishment of its existing investment properties while consultancy fees amounting to ZWL1.1 million were spent on various projects that are currently underway.
“The construction of the 25 cluster houses in Westgate is to commence in the third quarter of 2020 and cost management measures, including pre-purchases of raw materials, will be put in place to ensure successful delivery of the project.” added the company.
In light of the COVID-19 pandemic, Mash Holdings said the major impact has been a drop in collections levels for April 2020 which closed at 70% down from the average of 95%, which was testament to the Group’s strong tenant base.
In the outlook, the company highlighted that despite the development sub-market becoming riskier, it will put in place measures to enable implementation of some of its construction projects.
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