FMP back in the black
LIVINGSTONE MARUFU
First Mutual Properties (FMP) is back in the black after shaking off last year’s debilitating investment property losses that arose from the change in Zimbabwe’s functional currency, marking a decisive turnaround for the real estate group.
In a third-quarter trading update for the period to 30 September 2025, company secretary Dulcie Kandwe said the rebound was primarily anchored by higher net fair value adjustments on the group’s investment property portfolio.
“The group reported a consolidated profit after tax of US$1.8m for the period ending 30 September 2025, rebounding from a US$60.3m loss in the previous year,” Kandwe said, signalling one of the most significant reversals in the sector this year.
Total assets edged up 1% to US$138.2m from US$137m as at 31 December 2024, while liabilities eased by 2% to US$20.8m, down from US$21.2m in 2024, underscoring the group’s gradual strengthening balance sheet.
Rental income rose modestly by 2% to US$6.6m during the nine months to September, reflecting slow but steady demand recovery across FMP’s commercial property portfolio. More notably, the group recorded US$1.4m in fair value gains on investment property, a remarkable turnaround from the US$54.9m fair-value loss posted in 2024.
Kandwe said that despite signs of relative stability, the operating environment “remained complex and dynamic, characterised by a growing cash economy.” She noted that the US dollar continues to dominate all sectors of the market—particularly within the fast-expanding informal economy.
“This trend was reflected in the group’s performance, with US$-denominated revenue contributing 86% of total revenue for the period ended 30 September 2025, up from 76% in the comparative period of 2024,” she said.
The Zimbabwean property market itself is undergoing visible shifts. Rising diaspora inflows—largely cash-based—have fuelled strong demand for secure, gated residential developments, driving up values in premium suburbs such as Borrowdale and Mount Pleasant. These suburbs continue to appreciate, buoyed in part by integrated solar and water solutions that ease pressure from erratic public utilities.
On the commercial front, new developments remain concentrated in mixed-use spaces, office parks, retail hubs and leisure-oriented properties, with investors targeting tenants who prefer modern, energy-efficient facilities.
Despite the return to profitability, FMP opted not to declare a dividend for the third quarter, with Kandwe saying the company has “just recovered from a deep slump,” and must consolidate gains before resuming payouts.
Looking ahead, FMP sees a property market filled with both risks and opportunities.
Growth prospects remain strongest in affordable housing, commercial real estate, and diaspora-driven investments.
But the group cautioned that sustained success will depend heavily on broader economic stability, consistent policy implementation, and improvements in national infrastructure, factors that remain uncertain but crucial to unlocking long-term value in Zimbabwe’s property sector.
