HARARE, — Mashonaland Holdings Limited has delivered a stronger first half, with profit after tax rising 14% and operating profit up 27%, supported by higher rentals, improved occupancy and disciplined cost management.
The property owners and developers released unaudited consolidated results for the six months ended 30 June 2026 showing revenue grew 7% to US$3.91 million from US$3.65 million in H1 2025. Net property income increased to US$3.21 million, while operating profit rose to US$1.19 million. After fair value gains of US$613,693, profit before tax was US$2.09 million and profit after tax came in at US$1.80 million, up from US$1.57 million.
The company said the operating environment was better in H1 2026 due to moderating inflation, relative exchange rate stability and improved foreign currency inflows. Government is projecting 6.2% GDP growth for the year. However, challenges persist including high interest rates, foreign currency shortages, and limited long-term financing for property development.
The property market remained resilient. Demand was concentrated in well-located, affordable properties with utilities. Office and retail space saw improved demand on the back of a growing consumer market.
Group portfolio occupancy rose 1 percentage point to 90%, up from 89% in June 2025. Leasing initiatives and tenant retention programs helped lift rentals.
The investment property portfolio value increased to US$96.44 million from US$95.67 million at December 2025, reflecting US$1.15 million in improvements and fair value gains from the mid-year valuation.
Key projects advanced during the period:
The Pomona Commercial Centre Subdivision was completed and leasing accelerated. The centre achieved 79% occupancy by 30 June while the Coronation Drive Residential 90-unit project reached 90% completion and is awaiting statutory approvals.
In Shurugwi, stands servicing and sales commenced. Engineering work for phase 2 is planned for the second half of the year.
Total assets stood at US$103.39 million. Non-current assets were US$97.93 million, with investment property at US$96.44 million. Current assets rose to US$5.46 million, supported by higher receivables and cash.
Borrowings declined to US$5.57 million from US$9.01 million at year-end. The company ended with US$401,666 in cash, down from US$1.69 million due to investment in property and loan repayments.
Shareholders approved the reintroduction of a share buy-back programme at the Annual General Meeting (AGM).
Entering H2 2026, Mashonaland has set it sights on tenant satisfaction, retention and occupancy to drive rental income growth. The company said it is ioptimistic about opportunities from commissioning of current developments and said it will maintain a disciplined approach to experience, occupancy and project delivery to create shareholder value.
Earnings per share rose to 0.11 cents from 0.09 cents. No interim dividend was declared.
