Mash Holdings revenue down

HARARE - Property firm Mashonaland Holdings (Mash Holdings) says its revenues went down by 14 percent to $4,7 million in the full year to September 2017 due to company closures resulting in increased voids. 

The group’s chairperson Ron Mutandagayi said property expenses at $1,1 million for the year under review were 27 percent below comparative period.

“The reduction was mainly as a result of lower movement in the provision for credit losses compared to prior year. This was a result of increased recoveries in the current year,” he said.

He also noted that void related costs and property management expenses constituted the major portion of the expenses.

Mash Holdings posted an operating profit of $2,5 million up from $1,9 million in the 12 months to September 2016, resulting in the operating profit ration improving by 50 percent.

“The profit for the year was $1,6 million against a loss of $5,9 million in 2016,” Mutandagayi said.

The group’s property portfolio declined by four percent to $90 million, according to independent valuers Knight Frank Zimbabwe, largely driven the office sector where voids are high and rental levels are declining.

Mutandagayi said occupancy levels were down to 72 percent in the period under review from 74 percent last year.

“The marginal decline, however, masks sectoral and locational differences with the greater portion of the movement taking place in the CBD offices sector.

“The decline in occupancy, together with the rent reviews aimed at minimising vacancies, impacted negatively on the revenues,” he said.

Mash Holdings’ average annualised portfolio yield remained at six percent, while arrears went down to $1,8 million from $1,9 million last year.

Mutandagayi said the listed property firm will soon embark on a development of 24 medium density stands in Old Windsor Park, Ruwa.

“Despite the current economic challenges, your group will continue to pursue its growth strategies. In the long run the real estate sector will yield higher returns in spite of the short term setbacks that are currently being experienced.

“Meanwhile, value preservation will be the main focus as the group prepares for the uplift once the current economic challenges are overcome,” he said.