- Revenue rose by 50% to ZWL95.3m
- Rental income grew by 50%
- The company is exploring various projects aimed at diversifying the portfolio
HARARE – Property investment and development company, Mashonaland Holdings limited said profit increased by 24% as revenue was boosted by an increase in occupancy and rental growth.
For the four months ended 31 January 2021, pre-tax profit increased by 52% to ZWL94.8 million from ZWL62.4 million recorded in the same period last year and revenue rose by 50% to ZWL95.3 million from ZWL63.4 million over the same period.
Operating profit increased by 24% to ZWL54.1 million.
Occupancy levels for the period under review improved by 2% to 79.4% while rental income grew by 50%. Sales for the period were also buoyed by Statutory Instrument (SI) 185 of 2020 which allows dual pricing.
In a trading update following an AGM held in the capital today, the company said that collections remained resilient at 94% up from 90% despite the COVID-19 challenges which affected some tenant’s businesses.
“The company continues to implement risk management initiatives in screening new tenants and monitoring of settlement plans with existing tenants to manage arrears,” it added.
Total assets increased by 0.4% from the audited September 2020 position due to increase in investment property.
Investment property increased due to project investments in respect of the Bluff Hill Cluster Houses project.
Net asset value per share increased by 1.2%.
Listed on the Zimbabwe Stock Exchange, Mashonaland Holdings’ portfolio structure by gross lettable area and value remains predominantly weighted towards CBD office space (64%). Industrial and retail segments occupy 12% and 8% respectively, whilst land banks (8%), residential (4%), and health (3%) completes the Group’s portfolio structure.
Going forward, the company said it is exploring various projects aimed at diversifying the portfolio.
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