eBusiness Weekly
Business Writer
First Mutual Properties invested $404,2 million and $44,3 million respectively in maintenance and enhancements for the six months of the year, demonstrating its dedication to providing its tenants with a quality and secure property.
Elisha Moyo, group chairman, said they continued to ask tenants to submit timely rental evaluations and payments.
“This initiative resulted in the marginal drop on the number of defaulting tenants who in the past deliberately delayed to meet their lease obligations leading to improved collection rate at 87 percent (FY 2022: 86 percent),” he said.
He said the business continues to adapt to the dynamic changes in the demand for space in the right form, location and quality.
“CBD office space demand continued on a decline, largely driven by town planning schemes that are permitting retail and office space use and establishment along major arterial routes providing an alternative to tenants,” he said.
He said clients prefer to settle their rentals in foreign currency.
“The property market continued to see rental payments in multi currencies with the majority of payments being done in the United States Dollar currency whilst operating costs are mainly in the ZWL currency,” Moyo said.
“This is driven by the dual currency operating environment where continued reviews of rentals are key to drive the business growth strategic thrust. The volatility in the local currency continues to negatively affect the number of developments on the market.”
Moyo said the property firm is pleased with the opportunities that are coming along with aggressive infrastructure development thrust by authorities.
“There has been increased expenditure on public infrastructure and the expansion of this is expected to have an impact on increasing developmental activity on the market,” he said.
“Access to long term liquidity is key to increased property development through allowing cost effective development funding.”
As for the financials, the group’s inflation adjusted net property income increased by 10 percent to $1,333 billion from $1,213 billion.
In the same vein, inflation adjusted revenue rose 119 percent to $8,02 billion from $3,661 billion in the comparative period.
“Rental income remains the main source of revenue.”
In the outlook, he said the company will stick to its growth initiatives that are meant to boost shareholder value despite the lingering uncertainties.
“This includes investing in lucrative properties that can serve as a safeguard against inflation and exchange rate risks,” he said.
“Additionally, the business will prioritise maintaining high occupancy levels by effectively managing client relationships and offering quality and secure products through continuous property
