Mash Holdings revenue down 14 percent

HARARE - Listed property firm, Mashonaland Holdings (Mash Holdings), says its revenue for the year ended September 30, 2015 slumped 14 percent to $5,9 million from $6,8 million on the back of increasing voids and lease reviews in its portfolio.

Mash Holdings chairman Ron Mutandagayi yesterday said the group’s total comprehensive loss for the year stood at $6 million from a prior profit position of $25 587.

“Alternative income streams are being actively developed to grow the revenue base — despite positive net property income after expenses, the group posted a loss for the year of $6,04 million — largely a result of the decline in capital values of investment properties,” he said, in a statement accompanying the group’s financials for the period.

In the year under review, the property firm posted a net property income after administrative expenses of $2,4 million from $3,1 million attributed to dwindling revenue.

Property expenses slumped 19 percent to $1,5 million from $1,9 million, with these expenses representing 25 percent of the total income.

“This spend was largely driven by the provision for credit losses and costs relating to voids,” Mutandagayi said.

Administrative expenses increased four percent to $2,1 million from $2 million leaving the administrative expenses to income ratio at 35 percent up from the 29 percent recorded prior year comparative.

After an independent evaluation of the group’s property portfolio by Knight Frank Zimbabwe, it emerged that Mash Holding’s portfolio was valued at $99 million as at September 30, 2015 down from $104,2 million.

“This represented a drop of seven percent from prior year after factoring out acquisitions and improvements undertaken during this year,” the Mash Holdings chairman said.

Total rental yield softened from seven percent to six percent as occupancy at 76 percent was also lower than the 82 percent recorded in the prior period.

The realtor’s Belgravia office development was also completed during the period under review, and was handed over to a tenant, and added 2 800 square metres of gross lettable area to the portfolio and annual net rent of $400 000 to the group’s revenue — implying an initial property yield of eight percent.

He also said the rental market, which has been stagnant in the past year, will remain depressed, due to tight liquidity conditions coupled with a deteriorating economic environment.

According to stock broking firm IH Group (IHG), the weak performance of property firms listed on the Zimbabwe Stock Exchange is set to continue as high prices, debt and a tougher operating environment deters investment.

The sector’s year-on-year to June 2014 contribution to the local bourse’s turnover went down 15,41 percent while it shed 16,6 percent year-to-date.

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.