- FMP posted a US$1.4m profit for HY25, reversing a US$60.5m loss in HY24 , a US$62m turnaround
- Results were boosted by US$1.4m in fair value gains on investment properties, compared to US$54.9m paper losses last year
- USD leases now account for 86% of revenue, up from 76% in 2024, improving earnings quality and resilience
Harare - First Mutual Properties Limited (FMP), the Zimbabwe Stock Exchange–listed real estate investment and development group, has reported a loss reversal of US$60.5 million in the first half of 2024 to a profit of US$1.4 million for the six months ended June 30, 2025.
Last year’s deficit largely stemmed from distorted valuations caused by the mismatch between the official exchange rate and market realities, which inflated opening balances and masked the true value of assets.
Revenue grew modestly, rising 3% to US$4.5 million from US$4.3 million in the prior comparative period.
The quality of earnings improved, with US dollar–denominated leases now accounting for 86% of topline revenue, up from 76% last year.
This shift not only insulated the portfolio from currency shocks but also provided investors with a clearer view of the real cash-generating capacity of the assets.
Net property income softened 7% to US$2.2 million due to higher property expenses, yet occupancy levels remained steady at 85%, while rental collection rates improved significantly to 73% from 56% in 2024.
Independent valuer Knight Frank placed FMP’s portfolio at US$134.4 million as of June 30, 2025, slightly up from US$132.9 million in December 2024.
The marginal 1% growth signals stabilization in a sector previously battered by hyperinflation accounting and currency-induced distortions.
The group continued to advance its pipeline projects , the Arundel Office Park extension a double-storey, basement-equipped office block with 2,616.5 square metres of lettable space was completed during the half-year, with tenant negotiations underway.
In Zvishavane, FMP is co-investing in a mixed-use development comprising residential apartments, student accommodation, and retail units, a project executives report is progressing well.
The dominance of the US dollar in transactions, particularly in the informal economy, provided a cushion for landlords and improved the real value of rentals.
Zimbabwe’s property sector has demonstrated resilience, with strong demand for commercial and residential assets in prime urban areas. Diaspora-driven investment and private capital have underpinned most developments, as access to mortgage financing remains limited.
Looking ahead, FMP continues leveraging its strong asset base while intensifying tenant engagement and exercising prudent financial management to sustain profitability. Sustainability initiatives, including green building and ESG-aligned investments, remain central to the group’s medium-term strategy.
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