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Enacy Mapakame
First Mutual Properties shareholders are set to receive a cumulative $7 million dividend for the quarter to September 30, 2020.
The firm declared a dividend of 0,5982 cents per share for the quarter under review to be paid next month.
Among the key factors investors consider before pumping their money into a counter include its balance sheet, its ability to generate cash and stand economic volatility as well as dividend policy, which all adds to its allure. However, the volatility caused by Covid 19 impacts on businesses and has seen companies, even those with a consistent dividend policy, put a tight seal on their purses to preserve capital.
“At a meeting held on 17 November 2020, your Board resolved that an interim quarterly dividend of $7,398,431 being 0,5982 cents per share be declared from the profits for the quarter ended 30 September 2020.
“The dividend will be payable on or about 05 February 2021 to all shareholders of the Group registered at close of business on 29 January 2021.
“The shares of the Group will be traded cum-dividend on the Zimbabwe Stock Exchange up to 26 January 2021 and ex-dividend as from 27 January 2021,” said FMP.
During the quarter under review, FMP revenue rose 674 percent compared to the same period in the prior year. The growth was driven by rent reviews and occupancy levels which rose to 88 percent.
Sectorwide, the property market remain susceptible to low demand for rental space especially in the Central Business District (CBD) resulting in increasing voids.
In 2020, the second quarter rental reviews delayed in order to give tenants breathing space as the Covid 19 pandemic, which has since continued into this year.
A review by Knight Frank for the first half of 2020, showed that office space remained largely depressed with CBD buildings recording voids. Demand also remained subdued worsened by the Covid-19 pandemic as businesses implemented the social distancing requirements and working from home except for those in the essential services.
Property firms like Zimre Property Investments (ZPI) ,have already indicated plans to convert CBD properties to other uses like residential as well as leisure and hospitality as demand for office space remains weak.
However, prime residential and retail segments remained resilient, which also saw an increase in discounts offered on rentals pegged in USD.
The Knight Frank review also showed that there were no voids recorded in the retail side during the first six months of the year as rentals remained stable at around US$15 per square meters per month, while yields were also stable at around 6 percent and 7 percent.
Bongani Ndlovu