Mashonaland Holdings Limited’s 2018 operating profits declined to US$2.43 million from US$2.46 million in 2017.
In a statement, the Mashonaland Holdings chairman Ronald Mutandagayi says the operating environment for the company dominated by political contestation, remained challenging though generally stable in 2018.
The chairman says the hotly contested elections, uncertainties on p[olicy interpretations, implementation, and implication ignited volatility as the market, still healing from 2008, sought to move ahead of policy to avoid losses.
“In the absence of significant international support, monetary fragilities are likely to persist under the prevailing framework,” Mutandagayi said.
“Limited foreign currency availability remains the major binding constraint to the productive sector, which remained subdued over the trading period. “
The chairman’s statement also touched on the property market investment in Zimbabwe.
“The property market, effectively at the receiving end of the occurrence in the mainstream economy, was not spared from the weak economic fundamentals,” Mutandagayi says.
“Occupancies remained under pressure, and tenant-initiated downward rent reviews were noticeable especially in the CBD office sector as corporate occupiers sought to watch occupancy costs while business revenue were coming off.”
Mashonaland Holdings is involved in property investment and development within Zimbabwe.
Property expenses for Mashonaland Holdings were 21% above the prior year comparative period at US$ 1.34 million from US$ 1.10 million according to the company’s chairman.
“Property management costs and voids related costs were the main drivers of property expenses,” Mutandagayi says.