MashHold registers 24pc revenue growth
Mashonaland Holdings Limited, listed on the Zimbabwe Stock Exchange, has announced a 24 percent rise in revenue to US$1,74 million for the first quarter ended March 31, 2025, despite operating in an economic environment weighed down by soaring inflation and constrained liquidity.
The company’s resilience was driven by strong demand in retail and residential property segments, coupled with strategic developments aimed at capitalising on shifting market dynamics.
The quarter under review was marked by weakened consumer demand across Zimbabwe’s economy, as inflationary pressures and high interest rates eroded purchasing power. The Reserve Bank of Zimbabwe reported a year-on-year USD inflation rate of 15 percent, while tight monetary policies aimed at stabilising the exchange rate kept borrowing costs elevated.
Despite these challenges, the property sector, according to management, remained a beacon for investors, with real estate’s reputation for stable returns and persistent demand for prime commercial and residential spaces sustaining interest.
Mashonaland Holdings highlighted divergent growth patterns within the property sector, with the occupier market dominated by robust demand for retail and residential spaces.
The informal sector’s expansion fuelled demand for affordable retail units, prompting property owners to repurpose central business district (CBD) spaces into smaller, cost-effective shopping areas.
According to the property concern, residential demand was underpinned by a chronic housing backlog and limited new supply, pushing developers to prioritise low-to-medium-cost housing projects. The firm noted increasing investor appetite for retail and residential developments, which offer shorter-term returns compared to traditional commercial ventures.
Meanwhile, the group’s unaudited financial results revealed a 24 percent year-on-year revenue increase to US$1,74 million, up from US$1,41 million in the first quarter of 2024.
This growth was attributed to improved occupancy levels, which rose marginally from 87 percent to 88 percent, and the successful leasing of new spaces at its flagship Pomona Commercial Centre. Operating profit before fair value adjustments surged 36 percent to US$811 036, with operating profit margins expanding to 47 percent, a four-percentage-point improvement year-on-year. Rental yields also climbed to 9 percent, up from 8 percent, reflecting stronger returns on assets.
However, rent collections dipped slightly to 92 percent from 93 percent, signalling lingering economic pressures on tenants.
The company’s investment property portfolio remained stable at US$91,9 million, unchanged from December 2024, underscoring steady asset valuations despite macroeconomic volatility.
In terms of property developments, Mashonaland Holdings advanced two major projects during the quarter. The Pomona Commercial Centre, a 14 000-square-metre complex featuring wholesale and flexible warehousing units, completed construction and opened to tenants in April 2025.
While some businesses commenced trading immediately, others are finalising fit-outs ahead of a full launch in the second quarter. Meanwhile, the Greendale Cluster Housing development secured all regulatory approvals for critical infrastructure, including roads, water, and sewage systems.
Groundworks and preselling activities are slated to begin in the coming quarter, targeting demand for affordable residential units.
Looking ahead, the group emphasised plans to monetise recent investments, including the Pomona development, while pursuing a balanced portfolio to mitigate risk.
“Our focus remains on safeguarding investor returns through strategic asset commercialisation and disciplined cost management,” the company stated.
With Zimbabwe’s housing deficit and informal sector growth showing no signs of abating, Mashonaland Holdings says it aims to leverage opportunities in mixed-use projects and infrastructure developments that align with urban transformation goals. -herald
