daniel chigunwe
Business Writer
Property group, Mashonaland Holdings’ revenue for the first five months of 2024, increased by 23 percent to US$2.62 million from US$2,14 million in the comparative period despite a challenging operating environment obtaining in the country.
This comes as several companies are leaving Harare’s central business district (CBD) that is becoming increasingly informalised.
In the period, the group’s occupancy registered a marginal 1 percent growth to 88 percent from 87 percent in the same period last year.
“There is an active tenant and boarding programme that we are pursuing and we hope that by the time we close the half year, we will also be able to further report on further growth within our portfolio occupancy,” Mash Holdings’ acting managing director Kudakwashe Masundire told shareholders attending the company’s annual general meeting this week.
“Our revenue is 23 percent up from what we recorded last year and that improved performance has filtered into our operating profit at 24 percent. Our expenses, we have tried to just ensure that the growth in expenses is aligned to the revenue performance as well.”
Operating profit margin stood at 48 percent, up from 47 percent in the same period last year.
The company’s flagship project, Pomona Commercial Centre, is ongoing with current progress at 57 percent.
Real Estate Investment Trusts (REITs) are gaining traction as an investment class that can provide stable returns even amid challenges such as low occupancy rates in major office buildings.
At the AGM, directors’ fees and auditors’ remuneration for the past audit were approved at $679,05 million and $559.75 million respectively.
Bongani Ndlovu