HARARE, May 26 (The Source) – , Mashonaland Holdings after tax profit for the half year to March 31 grew 51 percent on the prior year to $984,748 after fair value adjustments in quoted securities.
However, group revenue was 16 percent down to $2.4 million compared to $2.8 million in same period last year, weighed down by declining rental income due to worsening voids and rent reviews.
Chairman Mike Mahachi said the rental income for the period was driven by rent reviews and decreasing occupancy which was at 72 percent,down from 74 percent.
Mahachi said the average annualised portfolio yield fell to 5 percent from 6 percent and the largest decline in yields was from the CBD multi-let properties as office tenants have been the hardest hit by the economic decline.
“In the short to medium term, the company will continue to pursue various strategies to retain good tenants but at the same time also seeking new revenue streams in less affected sectors,” he said in a statement.
During the period, property expenses were flat at $500,000, representing 30 percent of total income spend. Voids related costs accounted for 36 percent of property expenses.
Net property income after administrative expenses was lower at $1 million compared to $1.2 million previously, a decline that largely stemmed from a fall in revenue.
For the interim period, arrear were $2.1 million representing 39 percent of annualised rental income and an increase from 32 percent same period last year.
The chairman said this was largely a reflection of the declining income base. The company is adequately provisioned for doubtful debts, he added.
Looking ahead, Mahachi said the company will pursue developments that take advantage of demand for housing and commercial space.
He said to this end, development and servicing tenders have been received for the company’s residential projects.