Masholds optimistic despite headwinds
ZIMBABWE Stock Exchange-listed property investment and development company, Mashonaland Holdings Limited (Masholds), says it will continue focusing on its major strategic objectives anchored on the group’s diversification roadmap despite the harsh economic environment.
The major focus areas are set on completion of on-going property development projects.
Masholds has a long-term strategy that is hinged on diversifying its portfolio and has several property development projects that are ongoing.
In a statement accompanying its financial results for the six months ended June 30, 2024, the company said it remained optimistic despite economic headwinds.
“The Government of Zimbabwe has reduced the forecasted economic growth projections from 3,5% to 2%. The downward revision has been attributed to the severe impact of the drought on agriculture sector output,” Maholds said.
“Despite headwinds in the economic environment, the group remains focused on its strategic objectives. Major focus continues to be set on completion of ongoing property development projects, which form part of the group’s portfolio diversification roadmap.”
The firm said its development projects were going well, with some having been completed.
In the third quarter of 2023, Masholds commenced construction works on the Pomona Commercial Centre development, whose concept consists of wholesaling and flexible warehousing with 14,000sqm lettable space.
Masholds said the anchor tenant had been secured and 60% of the development had been successfully pre-leased.
“The project construction works are targeted to be completed in Q4 2024. The project has achieved a 65% completion stage and is on course for delivery in the fourth quarter of the year. The 12 Van Praagh Day Hospital project was completed and handed over to the tenant. The development started earning rentals under a long-term lease from January 2024.
“Mashview Gardens construction and handover of the 24 housing units to the beneficial owners has now been concluded,” Masholds said. During the period, the group posted a profit after tax of US$2,4 million, a 72% improvement from US$1,4 million in 2023.
The performance was driven by improved operating profit position and a capital gain on investment property of US$1 million (2023: US$1,2million).
Revenue increased by 15% to US$3,6 million from US$3,1 million, while rental income contributed to the positive performance having improved to US$2,7 million in June 2024 from US$2,3 million in 2023
“During the period, the group completed and handed over the Mashview Gardens cluster housing development. The group earned US$542 227 in revenue from the project, thereby contributing to the revenue performance for the half year period,” the firm said.
It added that operating profit increased by more than half to US$1,7 million in June from US$1,1 million in June 2023 “due to the improved revenue performance and decrease in project expenses following completion of the Mashview Gardens project”.
Masholds said during the period, the group performed an open market valuation of its investment properties and the investment property portfolio was valued at US$85,9 million in June 2024 compared to US$80,7 million in December 2023.
The group attributed the growth in the asset base to property capital gains of US$1 million and investments of US$4,2 million which were made into ongoing development projects.-newsda
