adminBusiness Reporters
PEARL PROPERTIES has recorded an after-tax profit of US$1,97 million for the six months ended June 30, 2013 up 22 percent from US$1,61 million earned during the comparative period last year. According to the results released by the company yesterday, rental income for the six months was US$4,51 million, 6,9 percent better than the comparative period last year.
“The group embarked on a project of subdividing floors at Pearl House in Harare into smaller units with a view to encourage viable letting to the emerging small and medium enterprises,” said the company.
Property expenses for the six months totalled US$0,65 million and this presented a 13,6 percent decline compared to the comparative period last year.
The group continues to monitor the level of general provision for credit losses, operating costs under-recoveries in order to timely provide for any tenant balances deemed irrecoverable and any under collections on recoveries.
Administration expenses for the six months were US$1,8 million being 6,8 percent higher relative to the comparative period last year due to the increase in advertising expenses that was at 137,1 percent.
Tenant annualised arrears declined by 29 percent to 11 percent reflecting the impact of the collection plans adopted during the first half of the year.
Net property income after administration expenses stood at US$2,02 million while operating profit of US$2,39 million was 16,1percent higher relative to the comparative period in 2012 after increases in administration expenses were offset by the 6,9 percent growth in revenue.
In an interview with Herald Business, First Mutual Holdings chief executive Mr Douglas Hoto said they had recapitalised the group’s subsidiaries by US$8,1 million by end of last year.
Reinsurance ratio has come down after putting US$3 million capital in 10 more businesses.
“We have recapitalised our 10 subsidiaries and we are seeing this as a move that is going to play a positive role in resuscitating our failing companies.
“Reinsurance ratio has come down after injecting US$3 million capital in 10 more businesses,” he said.
He also said “we have engaged with a large South African company willing to invest in our group and the discussions are still in their infancy stage but I can assure you that a foreign company is willing to invest”.
Online Reporter