First Mutual Properties (formerly Pearl Properties) revenues came down to June to US$3,7 million from US$4 million in the six to June weighed down by incessant demands for lower rentals and the need to retain tenants, managing director Chris Manyowa said.
Manyowa told analysts and journalists at a briefing in the capital this week his company had been forced to accept some rent reduction requests, a move that saw the top line coming off 8% in H116.
The group did not sell any properties in the period under review after the group took the decision to lease out properties.
Net property income stood at US$2,7 million from US$3,4 million.
Total profit stood at US$808 355.
Manyowa said his company has seen demand going up for space in the CBD and retail.
“Continued underperformance of the economy may dampen aggregate demand which will further negatively impact viability of the property sector. The property sector may continue in a slump in the short-term with recovery dependent on macroeconomic policy changes to stimulate investment in key productive sectors of the economy and infrastructure developments,” the company said in a statement attached to its results.
The company passed a dividend to preserve resources.
Pearl Properties assets stood at US$142 million and had liabilities amounting to US$15 million, implying a book value of US$127 million.
As at August 31, Pearl Properties had a price-to-book (P/B) ratio of 0,40 and a price-to-earnings ratio of 43.
As at Wednesday, Pearl had a P/B ratio of 0,38, implying the counter was trading at a discount of 62% to its book value.