- Revenue for the year increased from ZWL$133 million to ZWL$173 million
- Operating profit increased by 7%
- Occupancy levels improved by 2,3 percentage points
Property Investment and development company, Mashonaland Holdings Limited has seen a surge in its revenue for the financial year ended 30 September 2020 as a result of rent reviews and a marginal increase in occupancy levels.
Total revenue rose from a total of ZWL$133 million recorded in 2019 to a total of ZWL$173 million in the reporting period all in inflation adjusted terms, representing a 30% increase in earnings whilst operating profit experienced a 7% jump to ZWL$103 million from ZWL$96 million in the comparative period.
This comes after the company had to adjust rentals for its tenants as an adaptation strategy to the economic environment that was extremely volatile and characterised by operational hindrances such as inflation that peaked at 837,5% (YoY) in the month of July 2020.
Mashonaland holdings board chairperson, Grace Bema, in a statement accompanying the company’s results for the year, said this adversely affected the operations of the company which were only partly revived by the introduction of S.I 85 which allowed for trading in foreign currencies and the introduction of the forex auction system.
“Hyperinflation proved to be a major headwind which affected our performance significantly given that our rental income continues to be predominantly denominated in local currency,” Ms Bamu said
“Monetary authorities have since introduced a dual pricing system through Statutory Instrument 85 of 2020 which allows rental payments in more stable currencies, this has provided the much-needed relief for landlords.”
“In addition, the authorities abandoned the fixed exchange rate, replacing it with a weekly foreign currency auction system. These measures have had a positive impact on property markets,” she added.
On top of that occupancy increased from an average of 77% in 2019 to 79,3% in the reporting period whilst collections remained resilient at 90%.
“Collections were sustained through good customer management practices, a robust on-boarding process and continuous engagements with tenants,” reported the chairperson.
However, like with most companies in the country, COVID 19 also had its toll on the operations of Mashonaland Holdings particularly on its projects.
The chairperson reported that the company’s projects such as the repurposing of Charter House into a boutique hotel have been delayed as a result of the pandemic which has had an impact on the performance of the company.
Going forward into FY2021 the company says it will be focused on diversifying and optimising the performance of their portfolio as well as digitalising with an aim of improving operational efficiency.
Equity Axis News.