CHAIRMAN’S STATEMENT
Overview of Operating Environment
The macroeconomic environment was relatively stable during the period under review. Average inflation was 13.1% while the average interbank exchange rate depreciated by 4.3%. Notably, the use of the US dollar was more pronounced given the scarcity of the local currency as authorities maintained tight fiscal and monetary policies. The country has registered significant growth in the commercial retail and residential property sectors, with most large property project developments being executed by formal sector enterprises. The stability gives property sector companies relief in the real value of rentals and recoveries from rental arrears.
Unfortunately, the formal sector continued to bear a high tax burden, and your company has not been spared from this. I am, however, happy to report that the company continues to adapt its tactics to grow shareholder value. Against this, the board and management continue to explore innovative ways of implementing its pipeline projects.
Property Market Overview
Zimbabwe’s real estate sector demonstrated notable resilience during the review period, with sustained interest in high-quality commercial and retail properties in key urban zones. The market is expanding, driven by urbanisation, diaspora investment, and a growing appetite for secure and sustainable living environments. Growth is expected, particularly in areas such as gated communities and secure estates, eco-conscious developments, suburban commercial hubs and diaspora-led investments. It is, however, important to note that mortgage financing remains limited. As such, most developments are being financed from private resources, capital recycling and diaspora remittances.
Business Performance Review
The Group’s Net Property Income (NPI) was US$2,223,985, while revenue totalled US$4,468,294 (HY 2024: US$4,342,779). Rental income remains the main source of revenue. An improvement in pure US dollar rentals, timely rental reviews and relatively good occupancy of 85% underpinned the revenue growth achieved during the review period. Further, the rental collection rate was 73% compared with 56% in the corresponding period last year. Engagements with tenants to resolve outstanding arrears are ongoing.
Management is committed to providing quality and secure facilities through targeted upgrades and maintenance. To this end, US$530,154 was spent on infrastructure maintenance during the first half of the year.
Property valuations
An independent valuation by Knight Frank Zimbabwe placed the Group’s property portfolio at US$134,358,000 as at 30 June 2025, up from US$132,948,000 in December 2024. This represents a marginal 1% growth in investment property value following the half-year revaluation. The uplift was primarily driven by fair value gains, supported by the increase in US dollar-denominated rentals.
Developments
The Group continues to pursue investments in strategic locations to sustainably enhance shareholder value. Against this, the following projects are at different execution stages.
The flagship development, the Arundel Office Park extension which features a double-storey building with a basement, providing 2,616.5 square meters of total lettable space was completed. Discussions with potential tenants for the property are underway. In Zvishavane, First Mutual Properties Limited is a co-investor in a mixed-use development project, including six duplex flats, 28 blocks of double, triple-storey, and four-storey apartments, and student accommodation. I am happy to report that the project is progressing relatively well.
Sustainability
First Mutual Properties remains committed to integrating sustainability across its operations. Sustainable practices are essential for achieving long-term business success and creating stakeholder value. Our 2025 strategy focuses on enhancing environmental, social, and governance (ESG) initiatives, aligning with global standards to ensure future-proofed properties.
Dividend
At a meeting held on 26 August 2025, your Board resolved that a dividend of USD134,300 representing USD0.000108 per share and ZWG 1,249,500 which represents ZWG 0.001 per share be declared from the profits for the second quarter ended 30 June 2025. The dividend will be payable on or about 24 October 2025 to all shareholders of the Group registered at close of business on 3 October 2025. The shares of the Group will be traded cum-dividend on the Zimbabwe Stock Exchange up to 01 October 2025 and ex-dividend as from 02 October 2025.
Acknowledgements
On behalf of the Board, I extend my heartfelt appreciation to my fellow directors, management, and employees for their steadfast commitment and invaluable contributions throughout the period. I also wish to acknowledge our strategic partners, tenants, and service providers whose continued collaboration and support remain key to our success.
Business Outlook
Your Company will leverage its strong asset base and leadership to sustain the business operations in the future. Elevated focus will be put on rental collections, prudent financial management, agility and operational excellence. The Board remains confident that the strategies in place will support earnings resilience and drive longterm growth.
Elisha K. Moyo
Chairman of the Board
26 August 2025
Related Downloads
FMP – Unaudited Financial Results For the Half Year ended 30 June 2025.pdf
FMP – Short Form Unaudited Financial Results For the Half Year ended 30 June 2025.pdf
