Zimbabwe Stock Exchange-listed property firm Mashonaland Holdings has realised a 7% increase on its bottomline to $1.68 million for the four-months period to January 31, 2019 as occupancy rates improved.

Giving a trading update on the group’s performance at the company’s annual general meeting yesterday, management however said the revenue performance did not meet set targets.

“The revenue growth was on the back of higher occupancy rates, which were 76% up during the period under review. However, revenue growth was 3 percent below budget which will improve after the sale of stands set to commence in April 2019,” said management.

Mash Holdings experienced a 23% decrease in property expenses and a decline in bad debts, as collections stood at 86%.

Non-recurring expenditure, new staff and price increases resulted in a 415 increase in administrative costs, which was 14 percent above set targets for the period under review.

Management said aggressive rent collection resulted in rent arrears declining from 36% to 14 percent as at the end of the four-months period.

Void levels were lower at 24% from 29% from the prior year.

“The majority of the voids can be attributed to the obsolete design and poor functionality at Charter House (78% void) and Rhodesville (100% void), which require major rehabilitation. Progress is being made to turn Charter House into a hotel and refurbish Rhodesville.

In respect of Charter House, the group this week signed a memorandum of understanding with Touchroad International Holding Group to renovating the building into a five-star hotel.

Operating profit rose by 47% to $1.1 million, which was 22 above set targets for the period, notwithstanding delayed sales of stands in Old Windsor Park in Ruwa.

Going forward the group expects ongoing property refurbishments and internal systems re-evaluations to improve performance.

Mashonaland Holdings Limited is a Zimbabwe-based company, which is engaged in the property investment and development.