Listed property firm Mashonaland Holdings saw its profit dip by 2 percent to $2,35 million in the half year to March 2018, from $2,39 million in the corresponding period. According to management the decline in revenue was “due to the relatively stable occupancy level over the period and also because there were no major rent reviews in the period.”
Property expenses were at $0,63 million from $0,75 million previously.
This represented a 15 percent decline from the same period last year and the expense to income ratio declined to 26 percent from 30 percent previously.
The group said voids related costs remain the major item in it’s spent and constituted 44 percent in this period.
Administrative expenses at $0,7 million were 6 percent below prior year.
Mash Holdings posted an operating profit of $1,1 million, from $1 million same period last year, which was a 13 percent improvement.
Operating profit margin for the period under review stood at 46 percent.
Basic earnings per share was 0, 02 US cents.
Commenting on the performance group chairman Ron Mutandagayi said:
“Though uncertainties persisted, there were no major tenant movements and property values generally held. This was mainly because of the positive sentiments and expectations about the country rather than actual improvement of market fundamentals.
“Tenants are still struggling to pay rent and the void situation has not improved. However, expectations of better prospects have increased inquiries for business space and exploration of projects.
“There is renewed interest from foreign investors some of whom are eyeing participating in the local property market either directly or through portfolio investments.”
Going forward the group said it intends to maintain its strategy of “demand-driven developments”.
The board declared a dividend for the period of 0,061 US cents.