Mashonaland Holdings reported an 8 percent growth in after-tax profit to US$4 million for the year ended December 31, 2025, driven by rising rental income, strategic land disposals, and improving occupancy levels, even as structural pressures continue to weigh on parts of the property market. Board chairman Engineer Grace Bema described the performance as a measured but resilient performance in a mixed operating environment. Revenue for the year rose by 13 percent to US$8,1 million, supported by project income from the disposal of serviced residential stands in Greendale and alongside a strong uptick in rental income.
Rental earnings climbed 12,6 percent to US$6,3 million, driven by improved occupancy across the portfolio, particularly in the second half of the year. Operating profit, however, grew by 3 percent, weighed down by increased maintenance costs as the group prepared properties for new tenants.
Portfolio occupancy edged up from 88 percent to 89 percent, reflecting a gradual recovery in demand.
“The residential and select commercial sectors continue to record positive momentum,” said Eng Bema, noting that growth was being driven by urbanisation, investor appetite and government-backed housing initiatives. Despite these gains, the broader property market remains uneven.
Eng Bema highlighted the divergence between growing residential demand and the continued weakness in 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 constraints remain a key bottleneck.
“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, pointing to tighter scrutiny from authorities on land use and zoning approvals. The macroeconomic backdrop also continues to constrain growth.
“These trends persist in a constrained macroeconomic environment, marked by limited liquidity and high borrowing costs,” Eng Bema said, noting that property development and mortgage uptake remain subdued. Mashonaland Holdings’ investment property portfolio was valued at US$94,7 million as at year-end, up from US$91,6 million in 2024.
The growth was driven by a 3 percent capital gain and additional investments of US$1,2 million, with fair value gains of US$2,2 million recorded during the year. Capital appreciation was largely concentrated in land banks and the Pomona Commercial Centre, one of the group’s flagship developments. Finance costs for the year stood at US$919 264, linked to medium-term borrowings used to fund ongoing capital projects. The group continued to execute on a pipeline of residential and commercial projects aimed at positioning the portfolio for long-term demand shifts.
At the Pomona Commercial Centre, completed in December 2024, leasing progress has been slower than anticipated after the anchor tenant failed to take up space as contracted.
However, the group has since secured 60percent occupancy and expects to reach full take-up by 2026.
The Greendale Avenue cluster housing project was completed and delivered to buyers during the year, contributing significantly to revenue growth.
Looking ahead, Mash is preparing to break ground on a 30-unit upmarket apartment development at 126 Coronation Avenue in Greendale in the first quarter of 2026, having secured all necessary approvals.
In the Midlands, the group has also moved to expand its landbank through a 26,7 hectare acquisition in Shurugwi, earmarked for 445 medium-density residential stands. Meanwhile, its SME-focused Chiyedza House continues to perform strongly, with occupancy levels above 90 percent following an expansion to 90 furnished offices and more than 40 retail shops. Looking ahead, the group expects moderate growth, supported by improving economic fundamentals.“Zimbabwe’s economy is projected to sustain positive momentum in 2026, supported by improved agricultural and mining sector output,” said Eng Bema.
“The positive economic outlook is projected to have a positive impact on the property market, which is forecast to grow by up to 5percent in 2026.”
She said the group would continue to focus on residential opportunities while repositioning underperforming 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 a stronger asset base, improving occupancy and a growing development pipeline, Mash Holdings appears to be navigating Zimbabwe’s uneven property cycle with cautious confidence.-herald
