- Occupancy rates grew to 85.7%
- Arundel Office Park extension still at preconstruction stage
- Company is focusing on driving rental growth, managing operating and maintenance costs
Harare – First Mutual Properties (FMP) registered an improvement in occupancy rates in the year ended 31 December 2019 (FY2019) compared to the prior comparable period.
In a statement accompanying the Company’s financials, Group Chairman, Elisha Moyo said occupancies grew from 76.10% in 2018 to 85.70% at the end of 2019, a result of new lettings in the period.
Rental income for the period decreased by 12% to ZWL 58.10 million from ZWL 65.76 million in the prior comparable period underpinned by foreign currency translations effect.
The business maintained its strategic focus of investing in maintenance programmes to improve the quality of space aimed at attracting new tenants and retaining existing ones in the period under review.
Net property income marginally decreased by 13% to ZWL 43.31 million due to decrease in rentals while administration expenses decline by 29% to ZWL 20.72 million in the period due to cost containment measures implemented by the business.
FMP is at pre-construction stage of the Arundel Office Park extension with formal appointments of the design team having been concluded.
“In preparation of the project, some pre-purchases of bulk materials have commenced. The construction work is set to commence in H2 2020”, Mr. Moyo said.
On the outlook and in relation to COVID-19, the Group said its focus is on driving rental growth, managing operating and maintenance costs, all to ensure the going concern and sustainability of the property portfolio and with changing local and global and real estate trends, the Group will target investment opportunities in non-traditional real estate asset classes and provide property services to third parties to further diversify income streams.
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