FMP anticipates surge in demand for high-value properties
LIVINGSTONE MARUFU
First Mutual Properties (FMP) expects demand for high-value properties to rise in the near future, driven by significant investments from the diaspora community and cash-rich firms seeking to hedge against potential value erosion.
Despite operating in a complex and dynamic environment, marked by growing informal sector activity, the appetite for property investment remains strong among many companies.
In a statement accompanying the group’s half-year results ended 30 June 2025, Chairman Elisha Moyo said the country has recorded notable growth in both the commercial retail and residential property sectors, with most large-scale developments led by formal sector enterprises.
“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,” he said.
Moyo added that, despite a high tax burden, the company continues to adapt its strategies to grow shareholder value, as the board and management explore innovative ways of executing its pipeline projects.
The real estate sector has demonstrated resilience, with sustained interest in high-quality commercial and retail properties in key urban areas. The market is expanding, fuelled by urbanisation, diaspora investment, and a rising demand for secure and sustainable living environments.
The United States dollar continues to dominate transactions, especially in the informal sector. This trend was reflected in the group’s performance, with US$-denominated revenue accounting for 86% of total revenue for the six months ended 30 June 2025, up from 76% in the corresponding period of 2024.
The group recorded a Net Property Income (NPI) of US$2,223,985, with total revenue of US$4,468,294 (HY 2024: US$4,342,779). Rental income remains the primary 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,” Moyo said.
He emphasised the company’s commitment to providing quality and secure facilities through targeted upgrades and maintenance, noting that US$530,154 was spent on infrastructure maintenance in the first half of the year.
The group reported a consolidated profit after tax of US$1.4 million for the six months ending 30 June 2025, rebounding from a US$60.5 million loss in the previous year, which was largely non-operational and resulted from artificial investment property losses.
Total assets grew by 1% to US$138.2 million compared to US$137 million as of 31 December 2024, driven by net fair value adjustments on investment properties, while liabilities fell slightly to US$21 million from US$21.2 million.
The group continues to target strategic locations to sustainably enhance shareholder value. Several 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,” Moyo said.
He added that in Zvishavane, FMP is co-investing in a mixed-use development including six duplex flats, 28 blocks of double, triple, and four-storey apartments, as well as student accommodation. “I am happy to report that the project is progressing relatively well,” he said.
