PROPERTY developer Mashonaland Holdings Limited (Mashonaland) aims to grow its medical sector investment exposure to at least US$9,49 million by 2028, 10% of its total portfolio value, as part of its diversification strategy.
In its financial year ended December 31, 2024, Mashonaland reported it had added a major flagship development, the Pomona Commercial Centre, to its portfolio.
This addition increased the company’s total assets under management to US$94,9 million.
Of this amount, Mashonaland’s investment property portfolio was valued at US$91,6 million, up from US$80,7 million in the previous year.
Mashonaland has a long-term strategy hinged on diversifying its portfolio, with the company bent on increasing its market share through new products and market penetration.
During 2024, the company completed the Van Praagh Day Hospital and handed it over to the operator, a key step in building its medical sector footprint.
“By 2028, increase investment exposure in the medical sector to at least 10% of the overall portfolio value,” Mashonaland said in its recently released 2024 annual report.
“Support at least two social welfare institutions per annum with financial/material support as part of enabling them to deliver on their mandates.
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“During the year 2024, we completed the Van Praagh Day Hospital and handed it over to the operator. Valued at US$3 million, this brings investment in the medical sector to US$5 million, representing 6% of the overall MHL (Mashonaland) portfolio value.”
Another major addition during the year was the completion of the Milton Park Day Hospital, a 2 134-square metre modern healthcare facility built under a develop-and-lease agreement with a leading medical insurance and hospital operator.
The hospital is now being managed under a long-term lease arrangement.
“The investment into the hospital facility was in line with the group's plans to achieve a balanced property portfolio while also making socially responsible property investments which enhance societal well-being,” the firm said
Mashonaland also reported it was working to optimise overall portfolio performance by shifting focus to resilient sectors of the economy in a bid to drive sustainable income.
“The group recorded fair value gains on investment properties of US$742 907, down from US$1 871 811 in 2023. The decrease in fair value gains was a result of lower volatility in the US dollar property market,” it said.
“The decreased fair value gains consequently contributed to a 9% decrease in profit after tax, which closed the period at US$3,7 million compared to US$4,1 million in 2023.”
The reduced fair value gains contributed to a 9% decline in profit after tax, which closed the year at US$3,7 million, compared to US$4,1 million in 2023. Despite this dip, the company recorded improved quality of earnings.
Sustainable profits, excluding fair value and non-recurring gains, rose by 10%, from US$2,45 million in 2023 to US$2,69 million in 2024.
“The group continues to pursue its vision and strategy of growing shareholder value by owning and managing strategic real estate assets and spaces in a way that transforms the lives of stakeholders and communities it serves,” Mashonaland said.
“To achieve this vision, the group set out a roadmap to diversify and increase its property investments.
“The portfolio diversification strategy is aimed at reducing portfolio concentration and ensuring steady returns, while the portfolio growth strategy is aimed at improving the group’s offering to a changing customer preference.”
The property developer said it was committed to delivering long-term value to its shareholders while contributing to the sustainable development of the communities in which it operates.
