Mashonaland holdings limited records 80% increase in revenue
By Laurence Kanyasa
One of the leading property owners and developers, Mashonaland holdings recorded an eighty percent increase in revenue, three percent increase in occupancy and a sixty-two increase in operating profit for the trading period ending 31 December 2021.
This was revealed in the company’s financial year report in which the company said it had revenue soaring by 80% in the 15 months period under review to zwl $ 561 million.
“Apart from the effects of a longer period under review, the growth is also attributed to periodic rent reviews and increased occupancy from 79% to 81%,”said Engineer Grace Bema, Mashonaland holdings board chairperson.
In a statement, the Mashonaland Holdings chairperson said Zimbabwe’s operating environment has remained depressed despite easing of Covid 19 restrictions following decreased numbers in Covid cases.
She added that the local currency depreciated by 33% on the reserve bank foreign exchange market and by 90% on the parallel market.
Mashonaland Holdings gave an inflation-adjusted performance, which revealed that operating profits grew by 62% to zwl 300 million from zwl 185 million.
In addition, the groups operating profit margin decreased to 53% from 59% due to increased property administration expenses, Bema said
“Despite macroeconomic challenges, collections percentage improved to 94% in December 2021 from 90% in September 2020,” said Bema
She further stressed that the collections were spurred by sustained credit risk assessments on tenant on boarding and continuous engagements with sitting tenants.
Bema went on to say that the group’s properties were independently valued at 31 December 2021 by Exponential Properties Group (EPG) global, a professional property valuer.
Valued at ZW$13.9 billion, the company shed 11% from the inflation adjusted valuation performed as at 30 September 2020.
Mashonaland Holdings pointed out that Harare’s Central Business District (CBD) sector has been negatively affected by reduction in space demand due to worsening urban problems the city is currently facing.
Having faced these challenges, the group has various projects that has come forward, these include Mashview gardens, a cluster housing project in Bluffhill Harare
The 12 Van Praagh Day hospital project in Milton Park is another project by the group, Windsor Park Ruwa residential stands sale is another initiative in which the group hopes to sell stands averaging from 800- 1100 in Ruwa.
“Funds raised from sale of these stands are expected to create further liquidity to support other strategic development works,” said Bema
The board declared and paid an interim dividend of ZW $ 21,932,027, which translates to 1.299 cents per share in June 2021, final dividend payable, stood at zwl 50,678,148 translating to 3.003cents per share.
Engineer Bema said there are high hopes for improvement in the coming trading season as the country aims to increase GDP by 5.5% in 2022 driven by industrial, agricultural and mining out put.