Zimbabwe property investment and development company, Mashonaland Holdings Limited revenue for the year ended 30 September 2017 declined by 14% from US$5.5 million recorded in 2016 to $4.7 million.
According to the group chairman, Ronald Mutandagayi, property expenses were 27% below the comparative period.
“Property expenses at US$1.1 million were 27% below the comparative period. The reduction was mainly as a result of lower movement in the provision for credit losses compared to the prior period. Void related costs and property management expenses constituted the major portion of this spend,” noted Mutandagayi.
He added that administrative expenses were down by 43 percent compared to the prior year largely because of the measures the company put in place.
“Administrative expenses also reduced by 43% to US$1.4 million as compared to US$ 2.4 million recorded in 2016 resulting in an administrative expenses to income ratio of 28%.
“The group posted an operating profit of US$2.5 million as compared to 1.9 recorded in 2016.Operating profit ratio improved to 50% as compare to 33% recorded in 2016.
“Investment property capital values declined by US$3.5 as compared US$7.9 million recorded in 2016.
“The profit for the year as US$1.6 million against a loss of US$5.9 million recorded in 2016,”said Matandagayi.
Occupancy levels stood at 72 percent against 74 in the prior year, “The marginal decline however masks sectoral and locational differences with greater portion of the movement taking place in the CBD office sector. The decline in occupancy, together with rent reviews aimed at minimizing vacancies impacted negatively on the revenues,” further noted Mutandagayi.