Mashonaland Holdings Limited posted a resilient financial performance for the year ended December 31, 2025, recording a 13% increase in revenue to US$8.1 million, underpinned by strong rental income growth and proceeds from residential stand sales.

The property firm’s audited results show revenue rising from US$7.2 million in 2024, driven largely by the disposal of serviced stands and improved occupancy levels across its portfolio. Rental income grew by 12.6% to US$6.3 million, reflecting steady demand in selected segments of the market.

Profit after tax rose 8% to US$4.0 million, compared to US$3.7 million in the prior year, supported by revenue growth and a modest 3% capital gain on investment property. The Group’s investment property portfolio also strengthened, increasing 3% to US$94.7 million.

Earnings per share edged up to US$0.24 cents from US$0.22 cents in 2024, signalling improved shareholder value.

Board Chairperson Eng. G. Bema attributed the performance to both project execution and rental growth.

“The group achieved a 13% revenue growth from US$7.2 million in 2024 to US$8.1 million. Revenue growth was supported by projects revenue earned from the disposal of Greendale stands,” said Bema.

“Rental income increased by 12.6%, growing from US$5.6 million to US$6.3 million. The growth in rental income was supported by an increase in occupancy, particularly in the second half of the year.”

Operationally, Mashonaland Holdings completed several key developments during the year. The Pomona Commercial Centre reached completion and has already secured 60% occupancy despite the anchor tenant not taking up space, with management expressing confidence in achieving full occupancy in 2026.

The Greendale Avenue cluster housing project was finalised, with all residential stands handed over to buyers, while the Chiyedza House SME Centre expansion boosted capacity to 90 offices and over 40 retail units, maintaining occupancy levels above 90%.

Portfolio occupancy improved marginally from 88% to 89%, reflecting gradual recovery in demand, although performance remained uneven across segments.

The company noted that while Zimbabwe’s property market continues to show resilience—particularly in residential and selected commercial sectors—the central business district office segment remains under pressure due to shifting business models and weakening rental yields.

The operating environment continues to be constrained by limited liquidity and high borrowing costs, factors that are weighing on large-scale developments and mortgage uptake.

Mashonaland Holdings plans to focus on residential expansion and repositioning parts of its portfolio to align with evolving market dynamics. Upcoming projects include 30 upmarket apartments in Greendale and a 445-stand residential development in Shurugwi.

The group also signalled intentions to enhance tenant experience through infrastructure upgrades and improved service delivery, while navigating risks such as policy changes, rising taxes, infrastructure gaps and global economic uncertainties.

A dividend of US$490,007 was declared for the year, with the company indicating that details of the final dividend will be announced separately.

Despite persistent headwinds, the group’s performance highlights sustained investor interest in Zimbabwe’s property sector, particularly in housing developments, even as challenges in the office market continue to weigh on overall growth.