First Mutual Properties Limited has recorded a strong financial turnaround for the year ended December 31, 2025, returning to profitability after a significant loss in the previous year, supported by fair value gains on investment properties and improved rental income stability.

According to the group’s abridged financial results, profit for the period surged to US$3.89 million, reversing a loss of US$57.28 million recorded in 2024, highlighting improved asset performance and disciplined portfolio management.

Total revenue marginally declined to US$8.97 million from US$9.03 million recorded in the prior year, while net property income stood at US$4.57 million compared to US$4.84 million in 2024. However, positive fair value adjustments on investment properties significantly strengthened the company’s bottom line.

The company said the results demonstrate “significant resilience and strategic progress in a stable yet challenging operating environment.”

Total assets grew to US$140.07 million from US$136.95 million, while basic earnings per share improved to US$0.31 cents, compared to a loss per share of US$4.63 cents previously.

Operationally, the property group maintained solid fundamentals, with occupancy levels averaging 84 percent and rental collections remaining resilient at 80 percent.

The investment property portfolio value increased by 2.35 percent to US$136.08 million following ongoing maintenance upgrades and targeted development projects.

Among key developments, the company completed a new office block at Arundel Office Park, which has already been leased to a blue-chip tenant and incorporates a 75kWh net-metered solar system.

Management said continued capital investment was essential to maintaining competitiveness, with US$857,971 channelled towards infrastructure maintenance during the year.

The group highlighted a clear structural shift within Zimbabwe’s property market, noting weakening demand for large central business district office space while suburban office parks continue attracting tenants.

“The property market shows a clear divergence, with demand for large office space in the CBD remaining subdued, while suburban office parks are experiencing high demand and low vacancy rates,” the company said.

Investor appetite, management added, remains strong for income-generating real estate assets with defensive characteristics.

Board Chairman Elisha K. Moyo attributed the improved performance to relative macroeconomic stability and tighter economic policies.

“The relatively stable operating environment, supported by tight monetary and fiscal policies, contributed positively to the Group’s performance,” Moyo said.

He added that increased dollarisation of rental income played a central role in strengthening the business.

“The increased dollarisation of rental income enhanced cash flow predictability and supported portfolio valuations,” he said.

Looking ahead, First Mutual Properties expressed cautious optimism for 2026, with management prioritising income growth, tenant engagement and diversification into small-to-medium enterprise markets.

“The business outlook for 2026 is one of cautious optimism, supported by expectations of continued economic growth and currency stability,” the company said.

The group also indicated it will continue exploring development opportunities, including the utilisation of its land bank at Golden Stairs, as part of efforts to enhance shareholder value.

The Board recommended no dividend for the final quarter ended December 31, 2025. Total dividends paid during the financial year amounted to US$134,300, translating to US$0.000108 cents per share, alongside a ZWG dividend of ZWG1,249,500.

Despite ongoing challenges such as subdued consumer demand and high vacancy levels in the CBD office market, First Mutual Properties said it remains focused on disciplined capital allocation and portfolio resilience to sustain long-term growth.