MASHONALAND Holdings (Mashold) has reported a turnover of $40,6 billion in the half year ended March, which analysts have attributed to the company’s diversified property mix.
While the property concern’s turnover jumped 404% from
the previous figure of $8,042 billion, fair value adjustment of properties increased by 3 110% to $2,6 trillion and interest received rose by 140% to $12,9 billion.
“Property investor Mashonaland Holdings (Mashold) benefited from its diversified property mix with earnings continuing to grow ahead of inflation for the period under review,” Kingdom Stockbrokers said in its analysis for investors.
Kingdom said Mashold remained the best hedge against the country’s galloping inflation, which is now at 1 042%.
“Property is the best hedge in any inflationary environment,” the stockbroking firm said.
However, Mashold’s commercial property rentals continued to lag behind inflation due to the long-term nature of lease agreements.
The company is looking at finding an ideal property portfolio mix and critical mass with diversified sources of income.
Mashold’s finance income stood at $12,9 billion due to high-yielding investments.
Kingdom said since there were no major indications of improvements in the economy any time soon, the only positive thing for Mashold at the moment was the increase in the number of institutional and pension funds shareholders which had signified confidence in the long-term viability of property investor.
Mashold’s gross profit at $35,6 billion was 88% of turnover compared with 88,5% last year and expenses at $17,6 billion increased by 6 246% over last year.
Some analysts have said that while the group’s lack of tourist properties may be an advantage in the current environment, a valuable opportunity may be missed in the future.