Masholds turns focus on development projects
LISTED property concern Mashonaland Holdings (Masholds) says its primary goal for this year will be to finish the ongoing real estate development projects that are a part of its diversification strategy, despite economic challenges.
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 year ended December 31, 2023, Masholds said it remained focused on its strategic objectives despite the current economic headwinds.
“The Finance ministry anticipates that the overall impact of the El Nino weather phenomenon will outweigh expected improvements in the other sectors of the economy.
“Despite current economic headwinds the group remains focused on its strategic objectives notably portfolio diversification and portfolio performance optimisation. Major focus continues to be set on completion of ongoing property development projects, which are key to the group’s main portfolio diversification roadmap,” Masholds said
In the third quarter of the year, the firm commenced construction works on the Pomona commercial centre development.
The project, earmarked for completion in the third quarter of 2024, achieved a 35% stage of completion at the end of financial year 2023.
Construction work on the pre-leased 12 Van Praah Day Hospital project has been completed and handed over to the tenant.
The firm said construction of housing units under phases one, two and three for Mashview Gardens had been completed and processes were under way to handover the units to beneficial owners.
“The group performed an open market valuation of its investment properties as at December 31, 2023. The group’s investment portfolio was valued at ZWL$647 billion, which represents a 99% capital gain over the course of the reporting period.
The capital gains is reflected in the growth in rental income in inflation-adjusted terms,” the group said.
During the period, the group’s revenue increased 85% to ZWL$33,9 billion with rental incomes contributing to the improved revenue performance posting a 141% growth, thereby contributing 87% of revenue.
The group added that 74% of its rental earnings are now in foreign currency at a time the portfolio occupancy level has increased to 89% from 87% the previous year.
Operating profit after tax rose to ZWL$324 billion. The improved profit position was realised due to the improved operating profitability and a 99% capital gain recorded on investment properties.