Pride Mzarabani
HARARE – First Mutual Properties (FMP) increased revenue by 6% to US$3.85 million in the five months to May 31, 2026 as the property company shifts into an expansion phase anchored on its two major land banks, positioning itself for fresh capital raising following its delisting from the Zimbabwe Stock Exchange (ZSE).
The company said the delisting has unlocked greater flexibility to raise capital for major property developments, with management targeting the 24-hectare Golden Stairs land bank and the expansion of Arundel Office Park as key growth drivers.
The expansion strategy comes as FMP reported an 82% increase in profit to US$1.33 million for the period to May 31, 2026, supported by higher occupancy levels, rising rentals and lower property expenses.
Revenue rose to US$3.85 million from US$3.62 million in the comparable period last year, while property expenses declined by 14% to US$1.43 million. Net investment performance improved by 24% to US$2.42 million, with occupancy increasing to 86.8% from 84.2% and average rentals rising to US$6.75 per square metre from US$6.38.
Speaking during company’s annual general meeting, Managing Director Christopher Manyowa said the company’s recent delisting was primarily aimed at creating greater flexibility to raise capital and support long-term growth initiatives.
“Basically it was just to address the capital structure of the company. At the moment, when we were on the exchange, we had not been able to do private placements. By being delisted as a company, we are therefore able to have flexibility in terms of raising money,” he said.
Manyowa said the delisting had also resolved the persistent discount between the company’s net asset value (NAV) and its market valuation, allowing the business to pursue growth opportunities on the basis of its underlying asset value.
“The delisting process has also cured the problematic discount of NAV compared to market value. But the main issue is the ability to capital raise, because now we are looking at NAV being the basis on which the company is looking in terms of value,” he said.
The company’s immediate development focus is on its 24-hectare Golden Stairs land bank, which management intends to develop in phases with an initial emphasis on retail infrastructure.
“The thrust of the company is to look at its two main land banks, being Arundel Office Park in total and also Golden Stairs, which has got about 24 hectares,” Manyowa said.
The Golden Stairs project has approvals for mixed-use development comprising between 20,000 and 30,000 square metres of retail, residential and office facilities. The initial phase is expected to include a supermarket, food courts, a service station and other convenience offerings, although the company is still undertaking feasibility studies and appointing professional teams before finalising capital requirements and timelines.
FMP is also planning a major expansion of Arundel Office Park following the successful completion and occupation of its latest office development.
“The concept for Arundel Office Park is to have additional office blocks, a hotel, conference facilities, serviced apartments and convenience shops, all aimed at creating a prestigious location capable of attracting the desired demand,” Manyowa said.
The proposed expansion will add about 18 office blocks of roughly 2,000 square metres each to complement existing tenants, including international organisations and other blue-chip corporates already operating within the precinct.
Manyowa said the company would continue recycling capital by disposing of assets that no longer fit its long-term objectives and reinvesting proceeds into higher-growth opportunities.
“We will continue to look at the existing portfolio, what is still good to keep and what is not good to keep. We will be disposing certain assets which are not good to switch for long-term objectives and put that money back into the portfolio,” he said.
Finance Executive Dumisani Tshabalala said improved operational performance was underpinned by stronger rental income and lower property costs during the period.
“The rental income of the business has gone up by 6.7%, while the effective average rental per square metre increased to US$6.75 from US$6.38. Occupancy has also gone up to 86.8% from 84.2%, which supported the overall revenue performance,” he said.
Shareholders also approved directors’ remuneration of US$260,618 for the year, while external auditors’ fees of US$92,888 were approved at the meeting.
