Occupancy levels at First Mutual Properties recover

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FIRST Mutual Properties (FMP) revenue for the first four months of the year to April increased significantly compared to the same period last year.
The company attributed the increase to a growth of occupancy levels during the period.
“Revenues for the four months period to April went up by 6,7 percent to $2,58 million over the prior comparable period in 2017. The increase was driven by improved letting as shown by a growth in occupancy levels,” company chief executive Christopher Manyowa said at the company’s annual general meeting last week. “Overall, occupancy levels went up by five percent to 76,09 percent from 72,44 percent in the same period last year,” he added.
Commercial property owners have, over the past few years, suffered as a result of increased tenants’ defaults on lease obligations and voids due to an unrelenting economic crisis.
FMP’s occupancy levels had fallen significantly over the past few years, dropping from 58,5 percent in 2015 to 50,9 percent in 2017. The company’s revenues, however, maintained considerable stability in the face of the rising voids coupled with a decline in rent rates which hit the property sector over the past few years.
The company’s revenues declined marginally from $62,8 million in 2015 to $61,6 million in 2017.
FMP said it saw improvements in its turnover, mainly at retail properties occupied by supermarkets, which have been recording brisk business lately.
Rental yield improved to 6,56 percent from 6,18 percent. Average rental per square metre grew by 5,2 percent  to $7,39.
The value of FMP’s investment properties increased 1,58 percent during the period under review. The company acquired properties worth $2 million in 2017, including properties in Belgravia, Harare and Chivhu.
There was, however, a 30 percent decline in its “other assets” as a result of a fall in rental arrears as well as improved recoveries.