Mashonaland Holdings plunges to $6mln FY loss

Mashonaland Holdings plunges to $6mln FY loss

HARARE, November 27 (The Source) – Mashonaland Holdings’ loss position worsened to $6 million in the full-year to September from $27,000 last year due to weak rental income and falling occupancy levels, the company said on Friday.

Revenue fell 14 percent to $5,8 million as the company reworked lease agreements to keep its client base and rising voids. Occupancies were at 76 percent for the year compared to 82 percent in the prior year. Total rental yield weakened slightly to six percent from seven percent.

Net property income at $4,4 million was lower than last year but was higher comparatively after administrative expenses of $2,1 million.

The collection rate also dropped to 72 percent from 76 percent previously.

“Tenant default risk remained a real threat to the business,” said the company in a statement accompanying the financials.

An independent evaluation by Knight Frank valued its property portfolio at $99 million, lower than $104,2 million last year.

The group completed its Belgravia Office Park during the year while tenants moved in on March 1. It also received planning permission for its Mabelreign housing project.

Mash Holdings also appointed ZB Holdings chief executive Ronald Mutandagayi as chairman from September 2. He replaces Ambrose Chinembiri who has been acting in the position since February 15 following the death of Elisha Mushayakarara.

Patronella Musarurwa was also appointed to the board from November 18.