Despite the obtaining economic challenges, property firm
In a trading update, the group's company secretary, Batanai Peresuh said the segment's income surpasses revenue generated during a similar period last year.
"Rental income increased by 21% to ZWL$77.71 million compared to the same period in the prior year. The uplift was mainly due to the quarterly reviews that were implemented from
The firm partly attributed the revenue increases on new lettings which had a positive impact on the rental income growth for the quarter ended
"Rent reviews were however temporarily suspended for the period May to
Despite the impact of the Coid19 pandemic, the group said occupancy levels as at
The Group has continued implementation of cost containment efforts and this has led to a reduction in expense to revenue ratios as follows: Property expenses to revenue ratio for the quarter was 16% compared to 18% achieved during the same period last year.
Administrative expenses to revenue ratio for the quarter ended
However, the group admitted that tenants' rent paying capacity has been negatively affected by the COVID-19 related restrictions which in turn has affected the inflation-hedging attribute of real estate investments in the Zimbabwean market.
Property expenses to revenue ratio for the quarter was 16% compared to 18% achieved during the same period last year.
During the quarter, the Group spent ZWL$10.6 million on property development projects. This outlay covered the pre-purchase of materials and professional fees towards the construction of the 25-cluster houses in Bluffhill, set to commence in the third quarter of 2020.
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