Property investment firm, Mashonaland Holdings Limited managed to post a revenue growth of 47.6 percent in its opening quarter to December 2020 despite headwinds in the property market which includes inflation and low demand for office space.
Since the advent of COVID-19 pandemic and the resultant lockdown measures put in place by government to curb further spread, the property market has been hard hit due to closure of business activity.
However, Mashonaland Holdings’ revenue for the period improved in inflation adjusted terms to ZWL$ 66 207 816 from ZWL$ 44 860 368 realized in previous quarter.
Rental income increased by 47.6 percent as occupancy levels marginally improved from 77.7 percent to 79.4 percent.
Operating profit increased by 18.9 percent due to the revenue growth, the operating profit margin however decreased by 19.5 percent due to an increase in total operating expenses.
“Statutory Instrument 85 of 2020, which had been put in place earlier, allowed sellers and service providers to freely market their goods and services, and transact in the USD currency. In the occupier sub-market most tenants were able to pay-up the rent arrears that were deferred during the lockdown period,” said company managing director, Gibson Mapfidza in the latest trading update.
Operating expenses increased by 59 percent to ZWL$30.7million driven by movement in unofficial market exchange rates which had a bearing on the Zimbabwe Dollar value of materials and services consumed by the company.
“Service providers have continued tracking premium exchange rates in the pricing of products and services to hedge against inflation,” said Mapfidza.
The property investment portfolio value remained at an inflation adjusted valuation of ZWL$10billion determined from the last valuation performed as at 30 September 2020.
The company also announced status on the various development projects which include the Bluff Hill cluster housing project currently on-going with the construction of a model house having commenced this month.
At the Lot C Galway project – the mixed-use sub-division layout and report is now at an advanced stage for final submission and approval while at Natal Office Park- value engineering is taking place to ensure project viability.
The Charter House reconfiguration is towards finalization of designs with selling of stands at Windsor Park now underway.
