PROPERTY developer Mashonaland Holdings Limited (Mashonaland) is looking to economic recovery to support the group in further realising its property portfolio diversification.
In its financial statement for the year ended December 31, 2024, Mashonaland board chairperson Grace Bema emphasised the anticipated recovery would aid the group in diversifying its portfolio.
“Zimbabwe’s economy is projected to experience a 6% GDP (gross domestic product) growth in 2025, recovering from a 2% growth in 2024. The agricultural, mining and services sectors are forecast to support economic growth in 2025,” she said.
“The positive outlook is forecast to support the group in further realising its portfolio diversification, and performance optimisation strategy. The group remains focused on pursuing its strategic growth plans while continuously improving efficiencies and customer service delivery.”
Bema also highlighted that the group recently completed three significant projects namely; Pomona Commercial Centre Development, Milton Park Day Hospital, and the Chiyedza House SME Centre.
Regarding the Pomona Commercial Centre Development project, she noted that construction began in the third quarter of 2023 and was completed in the fourth quarter of 2024.
Mashonaland’s total assets grew to US$94,9 million during the period under review, up from US$88,63 million in the prior year, following the valuation of its investment property portfolio.
Meanwhile, revenue increased by 12% to US$7 million from the prior year’s US$6,2 million.
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“Rental income contributed to the positive performance having improved from US$4,9 million in 2023 to US$5,6 million in current year,” Bema said.
“Rental income growth was supported by portfolio rebalancing and optimisation, which saw the Group introducing SME retail facilities and handing over of the day-hospital facility to its tenants.”
However, the group recorded fair value gains on investment properties of US$742 907, down from US$1 871 811 in 2023.
Bema said the decrease in fair value gains was a result of lower volatility in the USO property market.
“The decreased fair value gains consequently contributed to a 9% decrease in profit after tax, which closed the period at US$3.7million compared to US$4,1 million in 2023,” she said.
