• Profit after tax rose 8% to US$4.01 million, supported by a 13% increase in revenue and gains in investment property values
• Earnings growth was largely driven by fair value gains, highlighting reliance on non-cash valuation adjustments rather than strong rental income performance
• Underlying property market conditions remain soft, with marginal occupancy growth and continued pressure on rental yields, particularly in the office segment

Harare - Mashonaland Holdings , a leading real estate investment and development company   listed on the Zimbabwe Stock Exchange (ZSE), has recorded an 8% increase in profit after tax to US$4.01 million for the year ended 31 December 2025 from US$3.73 million in the prior year, driven by revenue growth and fair value gains on investment property.

Revenue for the period rose 13% to over US$8 million, reflecting steady rental income performance and contributions from property disposals, while total comprehensive income also improved to approximately US$4.03 million.

‘’Revenue growth was supported by projects revenue earned from the disposal of Greendale stands which were serviced and delivered to project customers during the year, ‘’ Grace Bema Board Chairperson said.

At face value, the results point to a property group regaining earnings momentum in a stabilising macroeconomic environment. However, a deeper analysis of the numbers reveals that the recovery is being shaped more by asset revaluations than by a  meaningful rebound in underlying demand.

A key driver of the group’s performance was fair value gains on investment property, which contributed over US$1 million to earnings during the period.

These gains, while boosting profitability, are non-cash in nature and reflect changes in property valuations rather than operational cash flows. As a result, they provide limited insight into the strength of the group’s core rental business.

At the same time, occupancy levels increased only marginally by around 1%, while rental yields remained under pressure across key segments. The office market, in particular, continues to face structural headwinds, including oversupply and changing workplace dynamics following the shift toward hybrid work models.

This divergence between rising profits and muted operating metrics suggests that while property values are firming, income-generating capacity remains constrained.

The group’s performance reflects broader dynamics within Zimbabwe’s real estate sector, which is showing signs of recovery but remains uneven.

On one hand, property values are being supported by sustained investor interest in real assets, underpinned by urbanisation trends, diaspora inflows and the need for inflation hedges. On the other hand, demand for rental space  particularly in central business districts  has yet to fully recover.

Mashonaland Holdings noted continued pressure in the CBD office segment, where vacancies remain elevated and rental growth subdued.

This creates a two-speed market, asset values are rising, but utilisation and rental performance are lagging behind.

The results also reinforce the role of property as a preferred store of value in Zimbabwe’s volatile economic environment.

With currency instability and tight liquidity shaping investment decisions, real estate continues to attract capital as a relatively stable asset class. This has supported property valuations across the market, even in the absence of strong rental demand.

Mashonaland Holdings’ investment property portfolio grew to approximately US$94.7 million, highlighting the scale of capital deployed into real estate as a long-term value preservation strategy.

In this context, rising profits driven by valuation gains reflect a market dynamic where capital preservation is increasingly taking precedence over income generation.

Beyond current performance, the group continues to advance its development pipeline, including projects such as the Pomona Commercial Centre and residential developments in Greendale.

These projects are expected to unlock future value and position the group to benefit from long-term urban expansion. However, their success will depend on a sustained recovery in demand and improved absorption levels across the market.

The continued investment in development suggests confidence in Zimbabwe’s long-term property fundamentals, even as short-term conditions remain challenging.

While the company’s results demonstrate resilience and steady growth, they also raise important questions about the sustainability of earnings.

If profitability remains heavily reliant on fair value adjustments rather than cash-generating rental income, the group  and the broader sector  could face risks in the event of a slowdown in property price growth or prolonged demand weakness.

Mashonaland Holdings, ZSE, Zimbabwe property market, real estate Zimbabwe, profit growth, investment property, fair value gains, rental yields, office vacancies, Zimbabwe economy