First Mutual Holdings Limited is committed to real estate investment to preserve value and stay relevant in the market, as per its financial statement for the year ending December 31, 2023.
Despite economic challenges, First Mutual sees great potential in Zimbabwe’s real estate sector and aims to provide “real returns” on investments.
The company’s chairman, Mr. Amos Manzai, reported a 199 percent increase in rental income. This rise is mainly due to shifting to US dollar-denominated leases and adjusting for inflation in local currency rentals.
While occupancy rates slightly decreased to 76.7 percent from 85.52 percent, new investments have increased available space. The average rental income per square meter rose to US$5.29 from US$3.51, attributed to the group’s expansion of its US dollar-based product portfolio to adapt to the changing macro-economic environment.
“With the economy dollarising, the group expanded its USD-based product portfolio to stay relevant. On the investment side, we focused on real assets to minimize the impact of high local currency inflation,” said Mr. Manzai.
The increase in USD revenue has led to more USD-denominated investments.
Mr. Manzai also reported a significant increase in overall net investment returns. Adjusted for hyperinflation, the increase is 146 percent, while in historical terms, it’s a remarkable 1,860 percent higher than the previous year. These positive results are mainly due to fair value gains on the Zimbabwe Stock Exchange. First Mutual plans to use group synergies to respond effectively to the macroeconomic environment and secure profitable returns for stakeholders.
Despite challenges like El Niño-induced droughts, the company is optimistic about growth in various sectors, including mining, tourism, retail, financial services, and construction.
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First Mutual believes that although economic shocks from liquidity injections may occur, the Government will manage the situation effectively.
Following a successful year, First Mutual Holdings declared a final dividend of US$1 million, which represents US$0.136 per share, payable in US dollars from the company’s profits for the year ended December 31, 2023.
Combined with the interim dividend of US$500,000, this brings the total dividends for the year to US$1.5 million. The dividend will be payable from the company’s operating cash flows around June 26 to all shareholders registered at the close of business on June 21.
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