Mashonaland Holdings said its revenue for the four months to January came in three percent lower on the comparable period last year at $1.58 million due to lower rentals and increased voids as nearly a third of its properties remain unoccupied.
Acting chief executive, Letwin Mawire told shareholders at the company’s annual general meeting (AGM) yesterday that voids increased to 29.3 percent in the period compared to 27.6 percent in the same period last year.
“Generally the highest vacancy levels were in the Harare office sector as business avoid noise, pollution and congestion that has characterised the CBD,” said Mawire.
Property expenses increased by 10 percent in the period to $4575 166 on the back of increased voids related costs and provision for credit losses.
However, Mawire said operating profit rose 10 percent to $711 988 compared to the same period last year.
She said collection ratio improved to 64 percent from 62 percent in the same period last year as the company continues to follow up on rent arrears and engaging defaulting tenants.
The company is reviewing and appraising projects to leverage on the expected turnaround of the economy. As a result, the company is currently working on prospective retail and office developments, Mawire said.- The Source