Mashonaland Holdings (Mash Holdings) said revenue was up to $1,68 million during the four months to January 31, 2019, three percent below the budget, attributed to higher occupancy levels at 76 percent.
Gibson Mapfidza, the property investment and development firm’s managing director said, the 47 percent increase in operating profit to $1,1 million was recorded during the four months to January 31, 2019, despite the delays in stands sales.
He said occupancy levels increased 76 percent compared to 71 percent year to date prior year.
“The negative budget variance year to date reflects delays in sale of the serviced stands in Old Mutual Park, Ruwa.
“The sale of the stands will commence in April 2019. Expected developer’s profit is estimated at $224,352,” Mapfidza said.
He said through rent reviews, the firm achieved a total portfolio revenue upliftment of 58 percent.
“In line with market dynamics and the need to retain our property values, the company reduced in rent review terms to three months to ensure regular rent reviews in line with market dynamics,” he said.
He said the firm has approached Real Estate Council to manage properties on behalf of others.
Year to date property expenses were 23 percent lower at $311,462 and 30 percent below budget.
He said improved occupancies from prior year led to a reduction in cost of voids expenses.
“The improved collection from long outstanding debtors between September 2018 and January 2019 has seen a favourable movement in bad debts provision,” he said.
Rent arrears declined from 36 percent in prior year to 14 percent during the review period.
Mapfidza said optimisation and adherence to new tenant on boarding and credit control processes should ensure that rent arrears are reduced.
He said portfolio voids stood at 29 percent during the review period compared to 29 percent in prior period.
Charter House contributed 78 percent while Rhodesville contributed 100 percent.
He said the company is exploring a number of new developments in line with identified corporate occupier requirements.
Mapfidza said capacity utilisation at 52 percent during the review period gives scope for further rent reviews across key property sub-sections. DailyNews