eBusiness Weekly
Enacy Mapakame
HARARE – Property firm, Mashonaland Holdings Limited performance for the full year to September 30, 2018 remained flat with revenue of $$4,74 percent, representing 1 percent increase from prior year.
Operating profit was stagnant at $2,4 million with margins falling to 48 percent from 50 percent.
Profit for the year rose 52 percent to $2,3 million from $1,5 million in the comparable year.
Basic earnings per share increased 55 percent to 0,14 cents.
During the period under review, the property sector remained subdued in line with the weak economic fundamentals obtaining in the economy.
“Occupancies remained under pressure and tenant initiated downward rent reviews were noticeable especially in the CBD office sector as corporate occupiers sought to match occupancy costs while business revenues were coming off.
“In spite of the weakening fundamentals, the flight to safe haven experienced in Q3 of 2018 saw high grade properties across the market retaining capital values. Marginal increases in occupancies were experienced in selected sectors and locations of the market,” said the group chairman Ron Mutandagayi in a statement accompanying the financials.
Average occupancy levels were at 76 percent, an increase from prior year’s 72 percent and this was a result of management developing a strong pipeline through market initiatives.
Property expenses were 21 percent above prior year comparative to $1,34 million on property management and voids related costs.
The company incurred marginally higher repairs and maintenance costs on three of its properties as it sought to retain existing and attract new occupancies.
Property portfolio stood at $90,66 million representing a marginal 1 percent increase from $90 million in the prior year.
Average annualized portfolio yield remained at 6 percent. In the outlook, management says the group will focus on portfolio performance optimization, diversification and governance.
“The group will pursue tactical and strategic measures to improve performance of the CBD portfolio. Portfolio diversification will reduce CBD and industrial sub sectors concentration risk, and at the same time grow the portfolio,” said Mr Mutandagayi.
The group declared a final dividend of 0,054 cents a share.
