Periodic rent reviews spur revenue for property company Mashonaland Holdings

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Mashonaland Holdings’ portfolio structure by gross lettable area and value remains predominantly weighted towards CBD office space
  • Revenue increased by 46% to ZW$149.4 million
  • Occupancies increased from 77.4% to 79.7%
  • Bluff Hill housing project now complete

HARARE – Mashonaland Holdings Limited reported a 46% increase in revenue to ZW$149.4 million for the half-year ended 31 March 2021 from ZW$106.2 million recorded in the same period last year.

This growth was driven by periodic rent review, a strategy widely adopted in the property market to hedge against the effects of inflation.

In a statement accompanying the consolidated financial results for the period under review, Mashonaland Board Chairperson Grace Bema said that occupancies for the period increased from 77.4% to 79.7% which also contributed to the revenue growth.

Operating expenses to revenue decreased marginally from 47% to 46% while operating profit increased by 29% from ZW$64 million in 2020 to ZW$83 million during the period under review underlined by the growth in revenue.

“Despite the challenges, collections for the 6 months to March 2021 remained resilient at 94% up from 91% in 2020,” Bema said.

“The collaborative business relationships with tenants and a robust on-boarding process continue to sustain collections.”

On property development projects, the Company has now made significant strides on the Bluff Hill housing project, after being held back by COVID-19 related constraints.

Bema said that the construction of a model show house is now complete and pre-selling has begun to manage the market risk.

“Following the issuance of the Certificate of Compliance by the Ruwa Town Board, the Company has commenced disposals for its 24 fully serviced residential stands in Windsor Park.

“Disposal of the stands and other non-core assets will provide liquidity to enable the Company to embark on its strategic developments,” she said.

About Mashonaland Holdings

Mashonaland Holdings Limited is a property investment and development company in Zimbabwe, providing solutions to the retail, commercial and industrial sectors. The Office/Retail division acquires, develops, and leases warehouses and factories and the Pure Retail acquires, develops and leases retail outlets; with other divisions involved in acquiring, letting and managing residential and specialised property as well as undeveloped land. Mashonaland Holdings Limited owns an in-house management division responsible for letting and maintaining privately-owned properties; and a property research and development division which identifies potential property investments and development opportunities. A financial division maintains company accounts according to regulatory accounting standards, invests funds in approved instruments and acquires properties for shareholder investments.

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