Pride Mzarabani
HARARE – First Mutual Properties has maintained a steady growth trajectory in its real estate portfolio, with total assets now spanning 93 properties and valuation edging up to US$136.08 million, reflecting a measured expansion strategy in a market still characterised by uneven demand dynamics.
The property unit recorded a 2.35% increase in portfolio value from US$134 million in December 2024, underlining resilience in asset pricing despite softer income performance and evolving tenant behaviour across key segments.
Managing Director Christopher Manyowa said the portfolio remains heavily weighted toward Harare, which continues to anchor the group’s balance sheet, while diversification is gradually taking shape.
“The portfolio is spread across Harare predominantly, that is where the balance sheet is bigger. Then we do Bulawayo, and more or less each provincial capital, though we are not yet in Chinhoyi, Bindura or Marondera, those are areas we are looking to move into,” Manyowa said.
He added that the group has established a footprint in key economic nodes including Gweru, Mutare, Kwekwe, Kadoma and Zvishavane areas benefiting from mining activity as well as in Chivhu and Nyanga, reflecting a strategy that blends urban commercial exposure with emerging regional opportunities.
The portfolio itself is broadly diversified across asset classes, with office parks accounting for the largest share at 30%, followed by CBD retail (15%), land (19%), CBD offices (18%), industrial properties (10%), suburban retail (5%) and residential at a modest 3%. This composition highlights a strong tilt toward commercial property, particularly office and retail segments, which remain sensitive to economic cycles and occupancy trends.
Operationally, occupancy levels have remained relatively firm at an average of 84%, while rental collections stood at 80%, pointing to some pressure on tenant affordability and cash flows in a tight liquidity environment. The group invested US$857,971 into infrastructure maintenance during the period, aimed at preserving asset quality and competitiveness in an increasingly selective tenant market.
Financially, for the year ended December 31, 2025 performance was mixed. Total revenue marginally declined to US$8.97 million from US$9.03 million, while net property income softened to US$4.57 million from US$4.84 million, reflecting subdued rental growth and cost pressures. However, the group recorded a profit of US$3.89 million for the period, a significant turnaround from a loss of US$57.28 million in the prior year, largely supported by valuation gains and improved balance sheet positioning.
Total assets increased to US$140.07 million from US$136.95 million, while basic earnings per share improved to US$0.31 cents from a loss of US$4.63 cents previously, signalling a recovery in shareholder value.
While the modest uplift in portfolio valuation points to underlying asset stability, the softer income metrics suggest that real demand conditions in the property market remain constrained. Going forward, the group’s ability to drive rental growth, improve collections and expand into underserved locations will be key to translating asset value gains into sustained earnings performance.
