Online Reporter
Business Reporter
FIRST Mutual Properties (FMP) says rental income remains the main source of revenue and the group has elevated its focus on tenant and portfolio diversification to widen revenue streams.
Mr Elisha Moyo, the group’s chairman, in a statement of financials for the year ended December 31, 2024, said group net property income increased by 62 percent to US$4,842 million compared to US$2,984 million in 2023.
The group’s revenue was up 31 percent to US$9,027 million, compared to US$6,896 million in 2023, with rental income remaining the main source of revenue.
“Revenue growth was driven by growth in property services income, predominantly project management fees, an upsurge in pure US dollar rentals, and timely rental reviews,” said Mr Moyo.
He noted that due to tenants’ financial challenges, the rental collection rate fell from 85 percent in 2023 to 75 percent in 2024.
“Management is working closely with tenants to resolve the arrears. There has been an elevated focus on tenant and portfolio diversification,” said Mr Moyo.
He added that management is committed to providing quality and secure facilities through targeted upgrades and maintenance, and against this, US$945,231 was spent on infrastructure maintenance during the year.
During the period under review, an independent property valuation conducted by Knight Frank Zimbabwe valued the property portfolio at US$132,948 million compared to US$179,772 million as of 31 December 2024.
“The decline in value was due to the adoption of the US dollar as a functional currency. The prior year’s investment property value was determined by converting the December 2023 local currency value using the official closing interbank rate of US$ ZWL5,935.4572,” said Mr Moyo.
In terms of property development, he said the group was strategically advancing shareholder value through various projects at different execution stages.
Mr Moyo said the flagship development, the Arundel Office Park extension, featured a double-storey building with a basement, providing 2,616.5 square metres of total lettable space.
“This project has been completed and is valued at US$5,1 million. In Zvishavane, First Mutual Properties is a co-investor and project manager of the development of mixed-use duplex cluster houses, three- to four-storey apartments and student accommodation.
“The project’s first phase comprises six duplex flats, which are 90 percent complete and 20 blocks of double- and triple-storey flats which are ready for commissioning. Construction of the student accommodation is progressing well,” he said.
Looking ahead, Mr Moyo said management will continue to adapt its strategies to protect shareholder value and sustain business operations.
“Prudent capital management, stakeholder engagement, effective utilisation of the available lettable space and ambience of our property portfolio will be prioritised,” he said.
