Mashonaland Holdings Limited closed the quarter to 30 September 2026 with improved profitability, supported by higher rental income, tighter cost control and steady occupancy across its portfolio.
The operating environment remained relatively stable during the period. Exchange rate stability and easing inflation, which slowed to 3.7% by the end of September, helped create more predictable conditions for rental pricing, maintenance planning and construction. Zimbabwe’s economy is expected to expand by about 5% in 2026, driven mainly by mining and agriculture. Liquidity constraints and geopolitical uncertainty, however, continued to weigh on businesses and on tenants’ ability to meet their obligations, keeping the group focused on collections, cost discipline and competitiveness.
Zimbabwe’s property market kept shifting during the quarter, with investment activity concentrating in suburban commercial developments, modern retail facilities and residential projects. Growing participation by institutional investors through Real Estate Investment Trusts is also opening new channels for financing development.
Demand for office space continued to move away from central business districts toward suburban locations, as occupiers looked for modern facilities, better accessibility and reliable infrastructure. Vacancies in Harare’s central business district remained high at around 50%, while suburban office parks attracted stronger demand. In response, landlords have been splitting larger offices into smaller, more flexible units to suit small and medium enterprises and lift occupancy.
Attention has also turned to ageing central business district buildings, with the City of Harare urging owners to refurbish and maintain them as part of efforts to improve the built environment. The push, together with the repositioning of older commercial properties, is seen as an opportunity to revitalise the city centre, improve accommodation quality and restore its appeal to businesses and investors.
Investment in modern retail and mixed-use developments continues to attract interest, although high borrowing costs and rising bulk infrastructure requirements are constraining development and pushing up property prices, affecting affordability. The market still offers scope for sustainable value creation through cost-effective, tenant-focused developments that deliver competitive occupancy costs, stable rental returns and long-term capital growth.
Financially, the group’s revenue was broadly flat at US$5.92 million, up marginally from US$5.91 million in the same quarter last year. The headline figure masked stronger underlying performance, with rental income rising 11% from US$4.6 million to US$5.03 million and property services commission income increasing 31% to US$775,000. These gains were offset by lower development sales, after revenue from the Greendale Stands Development was recognised in the prior year. Development revenue is expected to recover as ongoing residential projects progress.
Net property income rose 12% to US$4.83 million, from US$4.33 million a year earlier, supported by rental growth and a 31% fall in property expenses to US$1.09 million, reflecting improved cost management. Other income edged up 4% to US$27,379, while administrative expenses declined 5% to US$1.95 million. As a result, operating profit before fair value adjustments increased 27% to US$2.91 million, from US$2.30 million in the comparative period.
Portfolio occupancy held steady at 88%, with the group pointing to an active leasing pipeline expected to lift occupancy going forward. Rental collections eased from 92% to 90%, with management continuing to prioritise tenant engagement, arrears management and leasing initiatives. The investment property portfolio grew 3% in value to US$96.60 million, from US$93.50 million in September 2025, supported by positive valuation movements and continued investment.
On developments, construction has started at 126 Coronation Drive in Greendale, which will comprise 30 double-storey, semi-detached residential units. Initial work is focused on a model unit to showcase the apartments and support marketing, while off-plan sales have also begun. At Shurugwi Impali Source, which comprises 445 medium-density residential stands, servicing works are underway and off-plan sales have commenced. During the quarter, the project was granted Prescribed Asset Status, a milestone expected to improve its appeal to institutional investors.
Looking ahead, the group said it is encouraged by growth in recurring income and improved profitability. For the remainder of 2026, management will prioritise converting the development pipeline into sales and revenue, while strengthening portfolio performance through better occupancy, tenant retention and collections. The economic environment is expected to remain relatively stable, although geopolitical uncertainty and liquidity constraints remain risks. The group said it will stay responsive to changing conditions, with continued focus on operational efficiency, disciplined capital allocation and sustainable shareholder returns.
