First Mutual Properties eyes expansion as Portfolio revalues to US$133 million

Audrey Galawu- Assistant Editor

First Mutual Properties Limited closed the 2024 financial year with a property portfolio valuation of US$132.95 million—down 26% from US$179.77 million in 2023—largely due to the adoption of the US dollar as its functional currency.

While the decline appears steep, management maintains that it is a reflection of valuation methodology rather than diminished asset quality.

“This was a technical correction,” explained Managing Director Christopher Manyowa. “The previous year’s portfolio was denominated in local currency and translated using the official exchange rate, whereas the 2024 figures reflect a direct US dollar valuation. Our fundamentals remain strong.”

FMP’s diversified real estate portfolio, which spans CBD offices and retail, suburban retail, office parks, industrial, residential properties, and land, demonstrated its resilience in a volatile macroeconomic landscape marked by currency fluctuations, inflationary pressures, and declining liquidity.

Despite these challenges, FMP posted a 62% rise in net property income to US$4.84 million (2023: US$2.98 million), with total revenue increasing 31% to US$9.03 million from US$6.90 million the previous year.

Zimbabwe’s economic landscape in 2024 was shaped by the introduction of the Zimbabwe Gold currency in April, following the collapse of the previous local currency. The ZWG lost 48% of its value within the year, causing ongoing exchange rate instability and widening the parallel market premium—factors that disrupted formal sector performance, including the property market.

“Exchange rate volatility significantly impacted rental affordability and capital flows into real estate,” said Manyowa. “We had to be agile and responsive to retain tenants and safeguard portfolio performance.”

FMP’s collection rate fell from 85% in 2023 to 75% in 2024, but the company has intensified tenant engagement to manage arrears and preserve long-term occupancy relationships.

FMP's property portfolio is primarily weighted toward office parks (31%), followed by CBD offices (18%) and CBD retail (14%). The rest includes industrial (10%), suburban retail (5%), residential (3%), and land holdings (19%).

CBD Offices: Occupancy remained stable at 75%, though valuations dropped by 29%. Challenges such as limited parking, outdated infrastructure, and complex licensing requirements continue to push businesses to suburban areas.

Office Parks: These assets remain a core focus for FMP, offering prime locations and high demand from blue-chip and international tenants. Occupancy increased to 82%, and the average rental rose to US$9.64 per m².

Suburban Retail: This sector showed robust performance with a 99% occupancy rate, underpinned by strategic tenant mixes and resilient foot traffic in high-density zones.

Industrial: Occupancy slipped to 94% from 100%, but interest in light manufacturing and warehousing remains strong.

FMP’s flagship development, the Arundel Office Park extension, a double-storey building with basement parking and 2,616.5m² of lettable space, was completed and is valued at US$5.1 million. The Group is also co-investing in a mixed-use development in Zvishavane, which includes duplex cluster houses, apartment blocks, and student accommodation. The first six duplex flats are 90% complete, while 20 apartment blocks are ready for commissioning.

The company’s 2025 strategy is anchored on seven key pillars: Talent, Agility, Relevance, Engagement, Growth, Technology, and Sustainability—all driven by the "Go Beyond" philosophy.

“Our focus is on being agile in a rapidly evolving economy. That means diversifying revenue, optimising tenant mix, and continually investing in our portfolio to meet evolving market expectations,” said Manyowa.

The company spent US$945,231 on infrastructure maintenance and upgrades in 2024, reflecting its commitment to quality, safety, and functionality across its assets.

Real Estate Investment Trusts, co-working spaces, and student housing are among emerging trends that FMP is exploring as part of its drive to maintain relevance and profitability in a dynamic market.

“Our dedication to innovation, operational excellence, and sustainable growth will remain the cornerstone of our approach,” Manyowa said.

 “Despite the headwinds, we are confident in our ability to execute and deliver value to shareholders, employees, and communities.”

YOU MIGHT ALSO LIKE

Investor interest in Zim rises sharply: ZIDA ..

7/30/2025

First Mutual Properties eyes expansion as Por..

7/30/2025

After Bhola conviction, retailers warned to r..

7/29/2025