ZIMBABWE Stock Exchange-listed property firm Mashonaland Holdings after tax profit for the six months to March marginally rose to $2,1 million from $1,9 million buoyed by an increase in net property income.
Report by Tarisai Mandizha
Net property income increased to $3,4 million from $3,1 million against the backdrop of a growing debtors’ book.
Group chairperson Elisha Mushayakarara said the growth in revenue was in line with the company forecast and largely reflective of the trading environment.
“Management is actively pursuing opportunities that will bolster the current revenue streams,” Mushayakarara said. Mushayakarara said the rental growth rate of 9% from March 2012 to March 2013 was a result of rental reviews to market levels.
“The total portfolio rental yield at 8,2%, was marginally lower than the prior year. Given the upward rental trend, this decline was attributed to increasing capital values. At $0,97 million, the annualised arrears level was at 12% compared to 7% in 2012,” Mushayakarara said.
He, however, said ongoing efforts were in place to reduce the arrears position.
In the period under review properties expenses at $0,41 million for the six months ended March 31, 2013 from $0,43 million in 2012, were 4% below last year figure. Mushayakarara said salary adjustments during the year under review had also contributed to rising operating expenses.
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“Administrative expenses at $0,97 million rose by 21% from the prior year due to increases in staff-related costs.
“Consequently, the expenses to income ratio marginally grew from 22% last year to 25% in the period under review,” he said
The net property income after administrative expenses grew by 4% to $2,59 million from $2,52 million in 2012. The operating profit margin at 65% was largely in line with the previous year.
Mushayakarara said vacancies increased to 11% for the six months ended March 31, 2013 from 8% in the prior year as a result of tenants either downsizing space requirements or vacating to cheaper premises in the outskirts of the Central Business Districts (CBD).
He, however, said the company was actively pursuing opportunities outside the CBD in line with the decentralisation trend.
