Pearl Properties says the difficult operating environment has seen the company’s occupancy levels declining by six percent in the four months to April to 73 percent compared to 78 percent over same period last year.
Managing director Francis Nyambiri told the company’s annual general meeting that its revenue driver, rental income is under pressure resulting in revenue for the period declining to $2.7 million against $2.9 million in 2015 same period.
“Occupancy levels have taken a hit, reflecting the difficult market environment which we are operating under. Tenants are requesting downward rental reviews while some have reduced their size of occupancies,” he said.
Nyambiri said rent arrears were at $2.5 million from $2.52 million last year due to better efficiency in collections, resulting in a cash position of $1.81 million from $1.7 million in prior year.
Net property income for the four months is one percent ahead of last year at $2.2million.
Nyambiri said administration expenses for the period were four percent below last year at $795 000 compared to $826 000 previously.
Finance costs also went down as a result of how the company is amortizing the loan with Barclays Bank.
During the period, there were no revaluations of investment properties.
Profit for the period amounted to $1.21 million, an improvement on last year’s $1.07 million. – The Source