HARARE – Property investment and development firm, Mashonaland Holdings (Mash Holdings), has reported a five percent decline in revenue to $2,8 million in the half-year to March 2016 due to increasing void levels and downward rental reviews.
In the period under review, the group’s rental yield fell to six percent from seven percent in prior period due to a combination of declining income against a fixed portfolio valuation.
“Total occupancy fell marginally to 75 percent from 76 percent that was reported last year,” Mash Holdings chairman Ron Mutandagayi said.
“The rent collection rate declined to 68 percent from 72 percent reported at the end of last year. The declining collection rate and occupancy levels mirror the deteriorating economic environment,” he said, adding that tenants are finding it difficult to fulfil their lease obligations.
Mash Holdings posted a net property income after administrative expense of $1,2 million compared to $1,4 million last year.
“This drop was as a result of the decline in revenue and rising property expenses. The ratio of net property income to total income ratio dropped to 42 percent,” Mutandagayi added.
The listed firm did not declare a dividend despite registering a $0,7 million profit.