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HomeBusinessMash Holdings Revenue 80 Percent Up On Improved Property Occupancy  

Mash Holdings Revenue 80 Percent Up On Improved Property Occupancy  

ZSE-Listed property investor, Mashonaland revenue for the 15 months to December 2021, increased by 80 percent to ZW$ 561 million attributable to periodic rent reviews and increased occupancy from 79 percent a year earlier to 81 percent.

It has been a difficult operating environment for players in the property sector owing to depressed demand for property uptakes, inflation and down grade of property values.

In its financial statement for the 15 months to December 2021, Group net property income percentage decreased from 83 percent to 79 percent due to increases in property expenses. The Group said it managed to weather the storm by implementing several property maintenance projects to improve and maintain the quality of space so as to attract new tenants as well as ensuring tenant retention.

As a result, operating profit increased by 62 percent from ZWL$ 185 million to ZWL$ 300 million. Operating profit margin however decreased from 59 percent to 53 percent due to the increase in property and administration expenses.

Emirates

The group investment property portfolio was valued at ZWL$ 13.9 billion. 11 percent down from a year earlier reflecting the current portfolio’s CBD concentration.

“The Harare CBD sector has been negatively impacted by the reduction in space demand due to worsening urban problems such as deterioration of building infrastructure, street trading, congestion, noise pollution and attendant high building operating costs,” the company said.

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The group’s strategy is premised on portfolio diversification top reduce the CBD concentration while increasing investments in the emerging sectors of the market such as healthcare, flexible warehousing and logistics, hospitality, retail and office park segments.

The group has embarked on various development projects for expansion. For its 12 Van Praagh Day Hospital Project, an agreement to develop and lease a hospital at one of its properties in Milton Park has been secured. Pre-construction works are in progress with construction set to begin Q2-22.

At the Windsor Park in Ruwa, the group began disposal of its 24 fully serviced medium density residential stands averaging 800-1100 square meters.

“Funds raised from the disposal of these stands are anticipated to create further liquidity to support other strategic development works,” the group said.

 

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