- FMP reported a US$57.2 million loss for the year ended December 31, 2024, from a US$93.3 million profit in 2023
- The loss was largely due to a US$52.5 million revaluation write-down of its property portfolio
- Rental collection rates fell from 85% in 2023 to 75% in 2024 due to reduced demand in the CBD
Harare-First Mutual Properties Holdings Limited, a real estate investment and property development company listed on the Zimbabwe Stock Exchange (ZSE), has recorded a US$57.2 million loss for the full year ended December 31, 2024, compared to a US$93.3 million profit in 2023.
The loss was primarily due to a US$52.5 million revaluation write-down of its property portfolio from US$91.4 million in the prior year, triggered by the adoption of the US dollar as the functional currency.
‘’ The decline in value was due to the adoption of the US dollar as a functional currency,’’ company chairperson Elisha Moyo said.
This shift to USD-based accounting eliminated distortions caused by hyperinflation and currency volatility, resulting in a more accurate but lower valuation.
High vacancy rates in Harare’s Central Business District (CBD) also contributed to the devaluation, as tenants relocated to suburban offices and office parks.
Businesses were moving from CBD properties due to traffic congestion, parking shortages, and outdated facilities, such as malfunctioning elevators and air conditioning systems, reducing demand and impacting market values.
As a result, rental collection rates fell from 85% in 2023 to 75% in 2024.
However, demand for office parks and retail spaces remains relatively strong, with vacancy rates gradually declining.
Despite these challenges, First Mutual Properties showed operational strength.
Net Property Income surged by 62% to US$4.8 million from US$2.9 million in 2023, while revenue grew by 31% to US$9 million from US$6.8 million.
This growth was driven by increased property services income, particularly project management fees, a rise in US dollar-based rentals, and timely rental reviews.
Rental income remains the company’s primary revenue source, reflecting the sector’s reliance on stable, hard-currency leases.
To address tenant arrears, the company’s management is working closely with clients and focusing on tenant and portfolio diversification.
The company invested US$945,231 in infrastructure maintenance to enhance property quality and tenant satisfaction, aiming to boost occupancy levels.
In 2024, the company completed the Arundel Office Park extension, a US$5.1 million double-storey building with 2,616.5 square meters of lettable space.
In Zvishavane, First Mutual is co-investing in a mixed use development featuring duplex flats, multi-storey apartments, and student accommodation, with the first phase 90% complete.
To align with environmental, social, and governance (ESG) standards, the company is adopting green building technologies, water recycling systems, and solar energy to future-proof its properties and enhance long-term value.
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