First Mutual Properties Revenues up 352% y/y

[Bulls n Bears]

From: Bulls n Bears [mailto:info at bulls.co.zw] 
Sent: Monday, 28 June 2021 11:38
To: 'bulls at bulls.co.zw' <bulls at bulls.co.zw>
Subject: Harare-June m/m inflation rises to 3.88%

 

 


 <http://www.firstmutual.co.zw/> 


 

First Mutual Properties Revenues up 352% y/y

 

Harare-ZSE-listed Properties Investment concern, First Mutual Properties
Limited (FMP)'s total revenue for the 5 months to 31 May 2021 rose 352% in
inflated adjusted terms over the comparable period in 2020.

 

This compares favourably with y/y inflation rate as measured by the all
items CPI of 162% in the same period.

 

Revenue to May 2021 was ZWL$153.5m vs ZWL$33.9m in 2020. The business
benefitted from US$ denominated leases which are indexed to the ZWL$ at the
auction rate. There was also upside from the turnover kickers in the retail
business leases as the throughput improved.

 

Property expenses at ZWL$41.0m up 375% were however ahead of revenue growth
while allowances for credit losses increased owing to the rise in utilities.

 

Allowances for credit losses also increased reflective of the relatively
high arrears position despite an improvement in the collection rate to 63%
from 54%.Occupancy level was stable at 89% vs 88%.

 

Net property income rose 334% to ZWL$106.9m while admin costs were 474% up
in line with cost of living adjustments for staff as well as the practice by
service providers to benchmark their pricing to the alternative market which
was at a premium to the interbank over the trading period.

 

Operating profit was ZWL$41.4m while revaluation gains stood at ZWL$269.40m
to result in a PBT of ZWL$309.23m.

 

The company is currently implemented a carport solar project at FML Park
with expected output of 150kW as well as finalising the tendering process
for the Arundel Office expansion project.

 

The historical rental yield was 2% compared to 3% over prior period.

 

FMP last traded at ZWL1400 cents and is up 419% Year to Date on the Zimbabwe
Stock Exchange with a market capitalisation of ZWL$17.3 billion and US$203m
at the interbank rate and US$133m at the alternative market rate.

 

 

 

Invest Wisely!

 

Bulls n Bears 

 

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