Amid economic upheaval and the plummeting Zimbabwe dollar, MASHONALAND Holdings Limited (Masholds) saw its property portfolio soar. In the first half ending June 30, 2023, data shows an impressive 117% rise. This pushed the valuation to ZWL$453 billion, up from ZWL$208.87 billion at 2022’s end.
Moreover, the Zimbabwe Independent pointed out a drastic tumble in the Zimbabwean currency during this time. By June 2023, the rate had shifted from US$1:ZWL$684.33 to US$1:ZWL$5,739.79.
Grace Bema, Masholds’ Chairperson, recently spoke about the company’s advancements. She mentioned that after accounting for inflation, there was a significant growth in rental income. Specifically, she said, “By June 30, 2023, our properties were valued at a massive ZWL$453 billion. This is a 117% rise from our inflation-adjusted assessment in December 2022.”
Furthermore, compared to June 2022, the current period showed a capital gain of ZWL$231.49 billion. Consequently, this trajectory led the company to a profit after tax of ZWL$236.43 billion by June 2023. That’s a massive leap from ZWL$7.7 billion the prior year.
In addition, Bema mentioned the declining exchange rate surprisingly benefited the group’s revenue in Zimdollar terms. Over six months, revenue jumped by 150%, reaching ZWL$8.7 billion. Remarkably, rental income saw a 115% increase. Now, 74% of rental payment is in foreign currency, up from 35% the previous year.
Bema also shared uplifting data on occupancy levels. They’ve risen from 83% in June 2022 to 87% recently, aiding revenue growth.
Among their projects, Mashview Gardens stands out. Nearing its completion, it contributed ZWL$ 1.2 billion to revenue. Additionally, Bema highlighted other initiatives. For instance, the Milton Park Day Hospital Project is almost 90% done, and the Pomona Commercial Centre development will soon be inaugurated.
In terms of financial stability, Bema shared an optimistic figure. For each dollar of debt, Masholds has ZWL$1.90, indicating strong liquidity. Finally, total assets surged by 110.42%, hitting ZWL$481.4 billion by June. This showcases the benefits of timely property re-evaluation.
