Mashonaland Holdings releases its 2023 Annual Report

By Published On: June 7th, 2024Categories: Corporate announcement, Earnings
Mashonaland Holdings Limited 2023 Annual Report

Mashonaland Holdings Limited 2023 Annual Report

I am pleased to present the Mashonaland Holdings Limited inflation adjusted financial results for the year ended 31 December 2023.

Operating environment

The country’s macro-economic environment continues to be marked by hyper-inflation, foreign currency liquidity shortages and rapid deterioration in the local currency exchange rate. The country’s economic output is forecast to be constrained due to the El Nino weather phenomenon which has impacted on the performance of the agricultural sector.

The market has embraced the United States Dollar as the preferred transactional currency. Property market players have reported foreign currency revenue contributions averaging above 70%. However, low market confidence and foreign currency liquidity challenges have led to uncertainty over the sustainability of monetary policy structures.

The Group continues to navigate these economic headwinds by reducing Zimbabwe Dollar exposure in operations while implementing flexible funding models to support ongoing property development projects.

Property market

The property market performance continues to reflect the broader macroeconomic issues affecting the economy. United States Dollar liquidity shortages in the formal sectors of the economy have contributed to limited long-term capital to support property development projects. Property developers have opted to prioritise residential and building repurposing projects, which can deliver superior returns in the short-term, to counter the lack of appropriately priced long term development capital.

Increasing construction costs, exacerbated by high lending rates and an increased tax burden emanating from recent changes to fiscal regulations, have hindered the commencement of development projects required to support occupier market demand for new and modernized facilities especially in the retail and out of CBD office segments.

In the occupier sub-market, demand remains suppressed for the CBD office sector with no major occupancy gains recorded by market players. The market continues to witness positive demand for suburban offices and strategically located retail and warehousing space.

Reporting currency

The Board has considered the current operating environment and impact of exchange rate disparities in implementing the requirements of International Financial Reporting Standards (IFRS) and have concluded that it is necessary to present the 2023 financial statements in both Zimbabwe Dollars and US Dollars to adequately inform users of the Group’s financial performance. While the Group has maintained the Zimbabwe Dollar as its functional currency, supplementary unaudited US Dollar based financial information has been included in the Group’s announcement of financial results for the year.

Inflation adjusted financial performance

Revenue increased by 85% in the period under review to ZW$33.9billion. Rental income contributed to the improved revenue performance posting a 141% growth to ZW$29.6billion and thereby contributing 87% of the Group’s revenue performance. The Group now earns 74% of its rental revenue in foreign currency. The portfolio occupancy level increased to 89% from 87% in December 2022.

Further, the Group earned revenue of ZW$3.4billion from the Mashview Gardens housing project as construction works on the project were completed.

Operating profit before fair value adjustments increased by 422% to ZW$88.6billion supported by revenue growth. Included in operating profit are foreign exchange gains amounting to ZW$71 billion realised on conversion of foreign currency balances on hand.

The Group posted a profit after tax of ZW$324billion up from ZW$83billion in 2022. The improved profit position was realised due to the improved operating profitability and a 99% capital gain recorded on investment properties.

The Group’s collections percentage remained resilient at 94% due to continuous credit control engagements which sought to ensure timely realisation of value from rentals in the hyperinflationary environment.

Investment property

The Group performed an open market valuation of its investment properties as at 31 December 2023. The Group’s investment property portfolio was valued at ZW$647billion which represents a 99% capital gain over the course of the reporting period. The capital gain is reflected in the growth in rental income in inflation adjusted terms.

New property investments and projects

Pomona Commercial Centre Development Project

In the 3rd quarter of the year, the Group commenced construction works on the project. The development concept consists of wholesaling and flexible warehousing with 14,000sqm lettable space. The anchor tenant has been secured and 60% of the development has been successfully pre-leased. The project construction works have a target completion period of Q4 2024. The project achieved a 35% stage of completion at the end of the financial period.

12 Van Praagh Day Hospital Project

Construction work on the pre-leased development commenced in Q3 2022 with a planned 15 month construction period. The project has now been completed and has been handed over to the tenant to commence tenant fit outs. The development started earning rentals under a long-term lease from January 2024 in line with the Agreement to Develop and Lease (ADL) with the property tenant.

Mashview Gardens

Construction of the housing units under phases 1, 2, 3 has been completed. Site clearance and road resurfacing have now been completed and processes are underway to handover the units to beneficial owners.


The Board declared and paid an interim dividend of US$128 414 and ZW$258 980 496 during the year. Further to this, the Board has declared a final dividend of US$100 000 and ZW$3 768 517 047 payable from the Group’s profits for the year. A separate dividend notice will be issued to this effect.


The Government of Zimbabwe has forecast that the economy will grow by 3.5% in 2024 down from 5.5% in 2023. The Ministry of Finance and Economic Development anticipates that the overall impact of the El Nino weather phenomenon will outweigh expected improvements in other sectors of the economy.

Despite current economic headwinds, the Group remains focused on its strategic objectives, notably portfolio diversification and portfolio performance optimization. Major focus continues to be set on completion of on-going property development projects which are key to the Group’s portfolio diversification roadmap.


On behalf of the Board, I would like to thank our esteemed tenants for the continued loyalty and all our other stakeholders for their support. I also thank my fellow board members, management, and staff for their unwavering commitment.

Board Chairperson
26 March 2024

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