MASHONALAND Holdings Limited (Masholds)’s property investment portfolio rose by about 117% to ZWL$453 billion in the half year ended June 30, 2023, as the firm re-evaluated its assets following the sharp depreciation of the Zimbabwe dollar.
The increase in the value of its investment portfolio was from ZWL$208,87 billion as of the end of 2022.
At the end of the period under review, the Zimdollar fell to US$1:ZWL$5 739,79 from US$1:ZWL$684,33 recorded at the end of 2022.
In a statement accompanying Masholds’s half-year results ended June 30, 2023, the property developer’s chairperson Grace Bema said the capital gain on the re-evaluated assets was reflected in rental income growth in inflation adjusted terms.
“The group performed an open market valuation of its investment properties as at 30 June, 2023. The group's investment property portfolio was valued at ZW$453 billion, which represents a 117% capital gain from the inflation adjusted valuation performed in December 2022,” she said.
The fair value adjustment of the investment properties for the period under review, compared to the June 2022 comparative, gave a capital gain of ZWL$231,49 billion.
This helped spur profit after tax for the period under review to ZWL$236,43 billion as at June 30, 2023, from a comparative of ZWL$7,7 billion last year.
Bema said the exchange rate deterioration over the half year period also had a positive impact on the group's revenue performance in Zimdollar terms.
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“Revenue increased by 150% in the six months under review to ZWL$8,7 billion. Rental income contributed to the improved revenue performance posting a 115% growth. The group now earns 74% of its rental revenue in foreign currency up from 35% in the same time last year,” she said.
“The portfolio occupancy level increased from 83% in June 2022 to 87% thereby contributing to the revenue growth. Further, the group earned revenue of ZWL$1,2 billion from the Mashview Gardens housing project as the project reached the practical completion stage.”
Bema said the group’s collections percentage remained resilient at 94% due to continuous credit control engagements which sought to ensure timely realisation of value from rentals in the hyperinflationary environment.
Apart from Mashview Gardens, Masholds’s major projects include Milton Park Day Hospital Project and Pomona Commercial Centre Development.
The Milton Park project is 90% complete with roof cover installations having been completed, while external paving works and elevator installations are in progress, the company said.
Bema said the contracted tenant for the hospital had been invited to commence tenant fit outs to enable lease commencement in November this year.
The group has completed all the pre-construction works for the Pomona Commercial Centre development.
“The development concept consists of wholesaling and flexible warehousing units with a 14 000 square-metre lettable area. The anchor tenant has been secured and 60% of the development has been successfully pre-leased,” Bema said.
Masholds had ZWL$1,90 to every dollar of debt, showing that the firm was liquid enough to fund its projects.
Total assets were ZWL$481,4 billion at the end of June, up 110,42% from the end of last year owing to the investment properties re-evaluation.
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