Sidumisile Mabena
Tapiwanashe Mangwiro
MASHONALAND Holdings has reported an eight percent rise in after-tax profit to US$4 million for the year ended December 31 2025, driven by higher rental income, strategic land disposals and improved occupancy levels, despite ongoing structural challenges in parts of the property market.
Board chairperson Engineer Grace Bema described the outcome as a steady and resilient performance under mixed operating conditions.
Revenue for the period increased by 13 percent to US$8,1 million, largely supported by project income from the disposal of serviced residential stands in Greendale, alongside a strong improvement in rental inflows.
Rental earnings grew by 12,6 percent to US$6,3 million, underpinned by stronger occupancy across the portfolio, particularly in the second half of the year.
Operating profit, however, rose by just 3 percent, reflecting increased maintenance expenditure as the group prepared properties for incoming tenants. Portfolio occupancy inched up from 88 percent to 89 percent, signalling a gradual recovery in demand.
“The residential and select commercial sectors continue to record positive momentum,” said Engineer Bema, attributing the trend to urbanisation, investor appetite and Government-backed housing programmes.
Despite these gains, the wider property market continues to show uneven recovery. Engineer Bema highlighted the persistent divergence between rising residential demand and weakness in the central business district (CBD) office space.
“In contrast, the central business district (CBD) office sector remains subdued, with reduced demand driven by changing business models and cost pressures. This has led to an erosion of rental yields within the CBD office sector,” she said.
She added that infrastructure gaps continue to impede growth.
“The development of supporting infrastructure has not kept pace with the growth of new residential projects. This imbalance has perpetuated infrastructure deficits and prompted increased regulatory oversight,” she said, noting tighter scrutiny from authorities on land use and zoning approvals.
Macroeconomic constraints remain a key factor shaping sector performance.
“These trends persist in a constrained macroeconomic environment, marked by limited liquidity and high borrowing costs,” Engineer Bema said, adding that property development and mortgage uptake remain subdued.
Mashonaland Holdings’ investment property portfolio was valued at US$94,7 million at year-end, up from US$91,6 million in 2024. The uplift was driven by a 3 percent capital gain and US$1,2 million in additional investments, supported by US$2,2 million in fair value gains.
Capital appreciation was concentrated in land banks and the Pomona Commercial Centre, one of the company’s flagship developments.
Finance costs for the year amounted to US$919 264, linked to medium-term borrowings used to fund ongoing capital projects.
The group continued to implement a pipeline of residential and commercial developments aimed at repositioning the portfolio for long-term demand shifts.
At the Pomona Commercial Centre, completed in December 2024, leasing momentum has been slower than projected after the anchor tenant failed to take up its contracted space. However, the group has since secured 60 percent occupancy and expects full uptake by 2026.
The Greendale Avenue cluster housing project was completed and delivered to buyers during the year, making a significant contribution to revenue.
Looking ahead, Mashonaland Holdings is preparing to commence construction on a 30-unit upmarket apartment development at 126 Coronation Avenue in Greendale in the first quarter of 2026, having received all approvals.
In the Midlands, the group has expanded its land bank through the acquisition of a 26,7 hectare site in Shurugwi, earmarked for 445 medium-density residential stands.
Meanwhile, the SME focused Chiyedza House continues to deliver strong performance, with occupancy above 90 percent following its expansion to 90 furnished offices and more than 40 retail shops.
The group anticipates moderate growth ahead, underpinned by improving macroeconomic conditions.
“Zimbabwe’s economy is projected to sustain positive momentum in 2026, supported by improved agricultural and mining sector output,” said Engineer Bema.
“The positive economic outlook is projected to have a positive impact on the property market, which is forecast to grow by up to 5 percent in 2026.”
She said the group will continue to prioritise residential opportunities while repositioning struggling assets.
“Going forward, the group plans to leverage opportunities in the housing market while repositioning its properties, particularly in the CBD, to meet evolving market preferences,” she said.
With an expanding asset base, improving occupancy and a solid development pipeline, Mash Holdings appears to be navigating Zimbabwe’s uneven property cycle with measured confidence.
Online Reporter