Property concern Mashonaland Holdings’ operating profit declined by 15 percent to $647 000 in the four months to January 31 due to rising voids and lower rentals.
Rent reviews accounted for 70 percent of the total revenue reduction while occupancy accounted for the balance. Revenue for the period fell 14 percent to $1.6 million.
“Rent reviews and voids continue to be the major threat to revenue collection. The average decline in effective rent per square meter due to rent reviews was 15 percent. Most tenants are rationalising their costs in view of declining revenues, thereby reducing space or vacating to cheaper alternatives,” acting chief executive Letwin Mawire said in a trading update.
Portfolio occupancy marginally declined to 73 percent from 74 percent as at September 30, 2016.
Rental debtors went up by 10 percent to $2.1 million from $1.9 million in 30 September 2016.
Property expenses were six percent up to $521 000 due to voids and credit losses which accounted for 39 percent and 30 percent in that order.
Administrative expenses stood at $519 000.
Mawire said that the company is working on Ruwa and Westgate residential stands which will be developed upon receiving financial appraisals.
MashoHold completed a supermarket in New Houghton Park, Harare at a cost of $2.055 million which was already occupied.-The Source
(37 VIEWS)
This post was last modified on February 28, 2017 6:37 am
The role of social media on how people get their news in Zimbabwe is being…
Ten African countries are amongst the biggest debtors to China, but Zimbabwe is not among…
The Reserve Bank of Zimbabwe’s Monetary Policy Committee, which met on Friday last week, says…
Zimbabwe’s new currency further weakened to 13.4407 to the United States dollar today down from…
The United States lost its place as the most influential global power in Africa last…
The Reserve Bank of Zimbabwe governor John Mushayavanhu says street money changers who cash in…