HARARE, December 7 (The Source) – Mashonaland Holdings narrowed its loss position for the year ended 30 September 2017 to $1.6 million compared to $5.9 million in 2016 largely driven by reduced property expenses.
The company’s expenses were lower at $1.1 million, reflecting a 27 percent decline from $1.5 million during prior year.
“The reduction was mainly as a result of a lower movement in the provision for credit losses compared to prior year. This was a result of increased recoveries in the current year,” said chairman Ron Mutandagayi in a statement of the financials.
He said void related costs and property management expenses constituted the major portion of this spend and they constituted 22 percent of total income. Net property income for the period was 9 percent lower at $3.6 million from $3.9 million in 2016.
Group revenue declined 14 percent to 4.7 million compared to $5.5 million during prior year impacted by increased voids and lower rental income.
Mutandagayi said occupancy levels were lower at 72 percent compared to 74 percent and the marginal decline 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 rent reviews aimed at minimizing vacancies, impacted negatively on the revenues,” he said.
He said the average annualized portfolio yield remained at 6 percent and arrears went down to $1.8 million from $1.9 million in 2016.
The investment property total portfolio value was $90 million, a 4 percent decline from $93.3 million in 2016 largely driven by the office sector where voids are high and rental levels are declining.
Mutandagayi said the Group will soon embark on development of 24 medium density stands in Old Windsor Park Ruwa.
The group declared a dividend of $0.0097 cents.