ADRENALIN 00000
P R O P E R T I ES
Reviewed Abridged Consolidated Group Financial Results for the Six Months Ended 30 June 2022
Short-form Financial Announcement
This short form financial announcement has been issued in terms of the Zimbabwe Stock Exchange (ZSE) Practice note 13.
This short-form financial announcement is only a summary of the information contained in the reviewed abridged consolidated financial statements for the six months ended 30 June 2022. Any investment decision by investors and/or shareholders should be based on consideration of the reviewed abridged consolidated financial results for the six months ended 30 June 2022. The reviewed abridged consolidated financial statements have been released on the ZSE Data Portal: www.zse.co.zwand the Company's website: https://firstmutualpropertiesinvestor.com/
Financial performance
The summarised financial statement
Inflation adjusted | Historical cost* | |||||
30-Jun-22 | 30-Jun-21 | Change % | 30-Jun-22 | 30-Jun-21 | Change % | |
ZWL000 | ZWL000 | ZWL000 | ZWL000 | |||
Revenue | 746,274 | 595,460 | 25% | 485,763 | 191,416 | 154% |
Net property income (NPI) | 247,196 | 314,737 | (21%) | 122,984 | 89,506 | 37% |
Fair value movements- Investment properties | 29,743,530 | (4,651,593) | (739%) | 55,970,982 | 358,404 | 15517% |
Profit/(loss) before income tax | 29,909,713 | (4,586,123) | 752% | 56,478,288 | 402,384 | 13936% |
Profit/(loss) for the period | 25,064,733 | (2,058,299) | 1318% | 48,547,060 | 340,160 | 14172% |
Inflation adjusted | Historical cost* | |||||
30-Jun-22 | 31-Dec-21 | Change % | 30-Jun-22 | 31-Dec-21 | Change % | |
ZWL000 | ZWL000 | ZWL000 | ZWL000 | |||
Investment properties | 77,989,500 | 48,246,709 | 62% | 77,989,500 | 22,039,000 | 254% |
Total assets | 79,223,670 | 49,285,243 | 61% | 79,154,209 | 22,484,356 | 252% |
30-Jun-22 | 30-Jun-21 | 30-Jun-22 | 30-Jun-21 | |||
Cash generated from operations | 236,573 | 87,663 | 170% | 198,777 | 27,238 | 630% |
Inflation adjusted | Historical cost* | |||||
30-Jun-22 | 30-Jun-21 | Change % | 30-Jun-22 | 30-Jun-21 | Change % | |
Headline earnings per share (ZWL cents) | 2,026.69 | (166.42) | 1318% | 3,925.44 | 27.50 | 14173% |
Basic earnings per share (ZWL cents) | 2,026.69 | (166.42) | 1318% | 3,925.44 | 27.50 | 14173% |
*The historical cost information has been shown as supplementary information for the benefit of users. The historical cost information does not comply with the International Financial Reporting Standards in that it has not taken into account the requirements of International Accounting Standard 29 - Financial Reporting in Hyperinflationary Economies. As a result, the auditors have not expressed an opinion on this historic financial information and company financial information
Dividend
On 30 August 2022 the Board resolved that an interim dividend of ZWL 87 million and USD 100,000 be declared from the profits of the Company for the quarter ended 30 June 2022. Further details on the payment of the dividend will be communicated in a separate dividend announcement.
Review opinion
The consolidated inflation adjusted financial statements from which this abridged version has been extracted have been reviewed by the Group's external auditors, Ernst and Young Chartered Accountants (Zimbabwe). A qualified review conclusion has been issued thereon as a result of non- compliance with the requirements of International Accounting Standard 8 (Accounting policies, changes in accounting estimates and errors) and the consequential impact of applying International Accounting Standard 29 (Financial reporting in Hyperinflationary Economies) on incorrect base numbers for the corresponding (prior year) figures only. The auditor's review conclusion is available for inspection at the Group's registered office. The partner of this engagement was Fungai Kuipa (PAAB Practising certificate number 335).
E K Moyo
Chairman
30 August 2022
Directors: E K Moyo (Chairman), A M Chidakwa, D Hoto, S Jogi, C K Manyowa*, W M Marere, E Mkondo, T Ruvingo, S Wekwete (* Executive Director)
First Mutual Properties, First Mutual Park, First Floor, 100 Borrowdale Road, Borrowdale, Harare, Zimbabwe | P O Box MP 373, Mt Pleasant, Harare. Tel: +263 (242) 886 121 - 4 | Email: info@firstmutualproperties.co.zw | Website: www.firstmutual.co.zw | +263 778 917 309
ADRENALIN 16755
Reviewed Abridged Financial Results
For the half year ended 30 June 2022
HY 2022 CHAIRMAN'S STATEMENT
Overview of Operating Environment
Zimbabwe has been experiencing rising inflationary pressures and exchange rate volatility since the beginning of the year. This has also been worsened by geopolitical conflicts, particularly the Russia-Ukraine conflict and the Covid-19 induced supply chain disruptions. These developments during the period under review had significant knock-on effects with global inflation reaching its highest since 2008 while economic growth remained mixed. Global issues coupled with climate
change (unpredictable rainfall and weather patterns) had important implications for Zimbabwe's operating environment, cost of doing business and hence strategy implementation as well as business viability.
Annual inflation rose to 191.6% in June 2022 from 60.7% in December 2021. Both the official and unofficial exchange rates were under pressure during the period under review. The official rate depreciated by 70.7% from ZWL108.67 on 31
December 2021 to ZWL370.96 on 30 June 2022. Management, however, continued to implement effective strategies to
minimise the potentially huge negative effects of the changing operating environment on business.
Property Market Overview
Space absorption remained low during the period under review due to relatively weak demand that resulted in excess supply of space in the Central Business District (CBD) offices and Suburban Shopping centres. In contrast, the retail, warehousing and prime office space segments enjoyed relatively strong demand resulting in high occupancy levels.
Achieving sustainable rentals has remained a major challenge for the industry given the inflationary and exchange rate
depreciation pressures experienced during the review period. Further, pressure to preserve value of the local currency denominated rentals remained a top priority for property companies including the First Mutual Properties. Against this, quarterly reviews of local currency denominated rentals were being made in tandem with the prevailing business conditions.
The country has seen some developments in the industrial and retail warehousing sectors. Further, there has been an increase in the development of owner-occupied office park style buildings, cluster houses and residential house conversions
and new commercial developments especially in suburbs just outside the CBD and on major roads. First Mutual Properties has positioned itself to take advantage of the emerging growth opportunities for the benefit of the shareholders.
Business performance overview
The Group's inflation adjusted Net Property Income after administration expenses decreased by 46% to ZWL67.4 million (HY 2021: ZWL125.8 million) despite growth in inflation adjusted revenue of 25% to ZWL746.3 million (HY 2021: ZWL595.5 million). Rental income remains the main source of revenue. In historical terms, revenue grew by 154% from ZWL191 million in June 2021 to ZWL486 million mainly due to timeous rental reviews and stable occupancy level averaged 89.23% for the 6 months ending 30 June 2022 (FY 2021: 89.53%).
Management continued to engage the tenants for timeous rental payments. This initiative resulted in the drop on the number of tenants who in the past deliberately delayed to meet their lease obligations leading to improved collection rate at 87% (FY 2021: 82%). The Company is committed to providing a quality and safe product (property) to its tenants. In light of this, ZWL 85.4 million and ZWL 3.4 million were committed towards maintenance and improvements respectively during the period under review.
Property valuations
An independent property valuation conducted by Knight Frank Zimbabwe as at 30 June 2022 valued the property portfolio at ZWL 78.018 billion (FY 2021: ZWL 22.039 billion). The growth in property values of 254% is driven by the growth in rentals in line with the inflationary environment.
Developments
The Group has positioned itself to create value for its shareholders by embarking on various projects that are at different stages of execution. We are happy to report on the Arundel Office Park extension and Mbare retail warehouse for Gains
Cash and Carry.
With regards to the Arundel Office Park extension, all the construction designs, tenders and approvals were obtained.
Construction is scheduled to commence in September 2022.
The Mbare retail warehouse was completed and handed over to the tenant (Gain Cash and Carry) in June 2022. Tenant
operations began in July 2022.
Sustainability
The Group will continue to run its operations sustainably in line with the environmental, social and governance (ESG) requirements. The adoption of "green" operations including investing in a solar power plant, energy efficient operations and waste management initiatives remain key to the Group's strategy. We will continue to enhance the Group's ESG
framework in line with the global trends.
Dividend
On 30 August 2022 the Board resolved that an interim dividend of ZWL 87 million and USD 100,000 be declared from the profits of the Company for the quarter ended 30 June 2022. Further details on the payment of the dividend will be
communicated in a separate dividend announcement.
Business Outlook
The business outlook remains highly uncertain. Despite this, the Company will continue to explore pragmatic strategies to grow the shareholder value including investing in high-yielding properties which will hedge the Company against inflation
and exchange rate risks. Maintaining high occupancy levels on the back of effective client relationship management, provision of quality and safe product through on-going property refurbishment, maintenance and upgrades will remain a
key focus area in the outlook.
E K Moyo
Chairman
30 August 2022
Interim Condensed Consolidated Statement of Financial Position
As at 30 June 2022 | |||||
Inflation Adjusted | Historical Cost | ||||
Reviewed | Audited | Unaudited | Unaudited | ||
Note | 30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 | |
ASSETS | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | |
Non-current Assets | |||||
Investment properties | 6.1 | 77 989 500 | 48 246 709 | 77 989 500 | 22 039 000 |
Investment in Associate | 7 | 27 455 | 27 455 | 8 702 | 8 702 |
Vehicles and equipment | 8 | 20 405 | 17 881 | 6 175 | 2 833 |
Financial assets at fair value through | 9 | 27 185 | 18 473 | 27 185 | 8 438 |
profit or loss - Unquoted shares | |||||
Financial assets at fair value through | 9.1 | 3 522 | 3 061 | 3 522 | 1 398 |
profit or loss - Quoted shares | |||||
Financial assets at amortised cost | 10 | 200 | 855 | 200 | 390 |
78 068 267 | 48 314 434 | 78 035 284 | 22 060 761 | ||
Current Assets | |||||
Inventory | 155 | 1 052 | 24 | 121 | |
Trade and other receivables | 11 | 348 234 | 464 507 | 311 887 | 192 677 |
Investment Property held for sale | 6.2 | 28 000 | - | 28 000 | - |
Cash and cash equivalents | 12 | 779 014 | 505 250 | 779 014 | 230 797 |
1 155 403 | 970 809 | 1 118 925 | 423 595 | ||
Total Assets | 79 223 670 | 49 285 243 | 79 154 209 | 22 484 356 | |
EQUITY AND LIABILITIES | |||||
Equity attributable to equity holders | |||||
of the parent | |||||
Ordinary share capital | 165 235 | 165 235 | 1 198 | 1 198 | |
Retained earnings | 68 113 130 | 43 141 966 | 68 245 733 | 19 760 449 | |
Total Shareholders' Equity | 68 278 365 | 43 307 201 | 68 246 931 | 19 761 647 | |
Non-current liabilities | |||||
Deferred tax liabilities | 13 | 10 502 270 | 5 702 520 | 10 483 981 | 2 598 083 |
10 502 270 | 5 702 520 | 10 483 981 | 2 598 083 | ||
Current liabilities | |||||
Current income tax liability | 14 120 | 14 498 | 14 120 | 6 623 | |
Trade and other payables | 14 | 428 915 | 261 024 | 409 177 | 118 003 |
443 035 | 275 522 | 423 297 | 124 626 | ||
Total Liabilities | 10 945 305 | 5 978 042 | 10 907 278 | 2 722 709 | |
Total Equity and Liabilities | 79 223 670 | 49 285 243 | 79 154 209 | 22 484 356 |
Interim Condensed Consolidated Statement of Comprehensive Income
for the period ended 30 June 2022
Inflation Adjusted | Historical Cost | ||||
Restated | Restated | ||||
Reviewed | Reviewed | Unaudited | Unaudited | ||
Note | 30 Jun 2022 | 30 Jun 2021 | 30 Jun 2022 | 30 Jun 2021 | |
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||
Revenue | 15 | 746 274 | 595 460 | 485 763 | 191 416 |
Property expenses | 16 | (472 550) | (263 450) | (336 251) | (95 986) |
Provision for credit losses | (26 528) | (17 273) | (26 528) | (5 924) | |
Net property income (NPI) | 247 196 | 314 737 | 122 984 | 89 506 | |
Employee related expenses | (55 002) | (83 715) | (38 593) | (27 184) | |
Other expenses | (124 810) | (105 233) | (84 653) | (22 059) | |
NPI after admin expenses | 67 384 | 125 789 | (262) | 40 263 | |
Fair value adjustment - investment | |||||
properties | 18 | 29 743 530 | (4 651 593) | 55 970 982 | 358 404 |
Net monetary loss | (534 445) | (73 569) | - | - | |
Finance income | 19 | 50 716 | 7 948 | 32 328 | 2 562 |
Other income | 20 | 582 528 | 5 302 | 475 240 | 1 156 |
Profit/(loss) before income tax | 17 | 29 909 713 | (4 586 123) | 56 478 288 | 402 385 |
Income tax (expense) credit | 21 | (4 844 980) | 2 527 824 | (7 931 228) | (62 224) |
Profit/(loss) for the period | 25 064 733 | (2 058 299) | 48 547 060 | 340 161 | |
Other comprehensive income for | |||||
the period | - | - | - | - | |
Total comprehensive profit/(loss) for the | |||||
period | 25 064 733 | (2 058 299) | 48 547 060 | 340 161 | |
Attributable to: | |||||
-Owners of the parent | 25 064 733 | (2 058 299) | 48 547 060 | 340 161 | |
Total profit/(loss) for the period | 25 064 733 | (2 058 299) | 48 547 060 | 340 161 | |
Basic and diluted earnings/(loss) per share | |||||
(ZWL cents) | 2 027 | (166) | 3 925 | 28 | |
Headline earnings per share (ZWL cents) | 2 027 | (166) | 3 925 | 28 | |
Weighted average number of shares in issue | 1 236 730 | 1 236 730 | 1 236 730 | 1 236 730 |
1
Directors: E K Moyo (Chairman), A M Chidakwa, D Hoto, S Jogi, C K Manyowa*, W M Marere, E Mkondo, T Ruvingo, S Wekwete (* Executive Director)
First Mutual Properties, First Mutual Park, First Floor, 100 Borrowdale Road, Borrowdale, Harare, Zimbabwe | P O Box MP 373, Mt Pleasant, Harare | Tel: +263 (242) 886 121 - 4 | Email: info@firstmutualproperties.co.zw | Website: www.firstmutual.co.zw | +263 778 917 309
Reviewed Abridged Financial Results
For the half year ended 30 June 2022
ADRENALIN 16755
Interim Condensed Consolidated Statement of Changes in Equity
for the period ended 30 June 2022 | ||||
Inflation Adjusted | ||||
Attributable to owners of the parent | ||||
Total | ||||
Ordinary Share | Retained | Shareholders | ||
Capital | Treasury shares | Earnings | Equity | |
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | |
At 1 January 2021 | 168 296 | (3 061) | 30 557 543 | 30 722 778 |
Loss for the period | - | - | (2 058 299) | (2 058 299) |
Dividend paid | - | - | (69 878) | (69 878) |
At 30 June 2021 | 168 296 | (3 061) | 28 429 366 | 28 594 601 |
At 1 January 2022 | 168 296 | (3 061) | 43 141 966 | 43 307 201 |
Acquisition of treasury shares | - | - | (518) | (518) |
Profit for the period | - | - | 25 064 733 | 25 064 733 |
Dividend paid | - | - | (93 051) | (93 051) |
At 30 June 2022 | 168 296 | (3 061) | 68 113 130 | 68 278 365 |
Interim Condensed Consolidated Statement of Changes in Equity
for the period ended 30 June 2022 | ||||
Historical Cost | ||||
All figures in ZWL | Attributable to owners of the parent | |||
Total | ||||
Ordinary Share | Retained | Shareholders | ||
Capital | Treasury shares | Earnings | Equity | |
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | |
At 1 January 2021 | 1 238 | (40) | 8 723 959 | 8 725 157 |
Profit for the period | - | - | 340 160 | 340 160 |
Dividend paid | - | - | (21 511) | (21 511) |
At 30 June 2021 | 1 238 | (40) | 9 042 608 | 9 043 806 |
At 1 January 2022 | 1 238 | (40) | 19 760 449 | 19 761 647 |
Acquisition of treasury shares | - | - | (518) | (518) |
Profit for the period | - | - | 48 547 060 | 48 547 060 |
Dividend paid | - | - | (61 258) | (61 258) |
At 30 June 2022 | 1 238 | (40) | 68 245 733 | 68 246 931 |
Interim Condensed Consolidated Statement of Cash Flows
for the period ended 30 June 2022 | |||||
Inflation Adjusted | Historical | ||||
Reviewed | Reviewed | Unaudited | Unaudited | ||
30 Jun 2022 | 30 Jun 2021 | 30 Jun 2022 | 30 Jun 2021 | ||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||
Profit before tax | 29 909 713 | (4 586 123) | 56 478 288 | 402 385 | |
Adjustment for non-cash items** | (29 931 672) | 4 760 046 | (56 425 044) | (346 955) | |
Cash flows from operating activities | |||||
before working capital adjustments | (21 959) | 173 923 | 53 244 | 55 430 | |
Working capital adjustments | 258 533 | (86 260) | 145 533 | (28 192) | |
Cash generated from operations | 236 574 | 87 663 | 198 777 | 27 238 | |
Tax paid | (51 567) | (75 648) | (37 758) | (24 678) | |
Net cash flow from operating activities | 185 007 | 12 015 | 161 019 | 2 560 | |
Net cash flows used in investing activities | (34 562) | (50 208) | (4 205) | (17 238) | |
Net cash flows from financing activities* | (68 052) | (65 016) | (61 777) | (21 511) | |
Net increase/(decrease) in cash and | |||||
cash equivalents | 82 393 | (103 209) | 95 037 | (36 189) | |
Inflation effect on overall cash flows | (543 945) | (79 299) | - | - | |
Opening cash and cash equivalents | 505 250 | 436 445 | 230 797 | 124 032 | |
Effects of changes in foreign currency | 735 316 | 26 858 | 453 180 | 8 464 | |
Cashandcashequivalentsat30June2022 | 779 014 | 280 795 | 779 014 | 96 307 | |
*Net cash flow from financing activities is entirely comprised of dividends paid out | |||||
**Adjustment for non cash items take into account the following | |||||
Inflation adjusted | Historical | ||||
30 Jun 2022 | 30 Jun 2021 | 30 Jun 2022 | 30 Jun 2021 | ||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||
Profit/(loss) before tax | 29 909 713 | (4 586 123) | 56 478 288 | 402 385 | |
Fair value adjustments | (29 743 530) | 4 651 593 | (55 970 982) | (358 404) | |
Impairment of trade receivables | 26 528 | 17 273 | 26 528 | 5 924 | |
Net monetary loss | 534 445 | 73 569 | - | - | |
Exchange (gain)/ loss | (706 110) | 11 814 | (435 179) | 4 383 | |
Other non cash items* | (43 005) | 5 797 | (45 411) | 1 142 | |
Cash flows from operating activities | |||||
before working capital adjustments | (21 960) | 173 923 | 53 244 | 55 430 | |
*0ther non cash items includes depreciation, profit on disposal, finance income and exchange gains
Notes to the Interim Condensed Consolidated Financial Results
for the period ended 30 June 2022
-
Corporate information
First Mutual Properties Limited is a public company incorporated and domiciled in Zimbabwe and its shares are publicly traded on the Zimbabwe Stock Exchange. The principal activities of the Group are property investment development and management. The condensed consolidated financial statements of the Group for the period ended 30 June 2022 were authorised for issue in accordance with a resolution of the directors at a meeting held on 30 August 2022.
- Statement of compliance
The Group's financial statements have been prepared in accordance with International Financial Reporting
Standard ("IFRS") as issued by the International Accounting Standards Board ("the IASB"), International Financial Reporting Interpretations Committee ("IFRIC") as issued by the IFRS Interpretations Committee ("IFRS IC") and in a manner required by the Zimbabwe Companies and Other Business Entities Act (Chapter 24:31). The financial statements are based on statutory records that are maintained under the historical cost convention except for investment properties and equity securities at fair value through profit or loss that have been measured on a fair value basis.
Auditor's statement
The consolidated inflation adjusted financial statements from which this abridged version has been extracted have been reviewed by the group's external auditors, Ernst and Young Chartered Accountants (Zimbabwe). A qualified review conclusion has been issued thereon as a result of non-compliance with the requirements of
International Accounting Standard 8 (Accounting policies, changes in accounting estimates and errors) and the consequential impact of applying International Accounting Standard 29 (Financial reporting in Hyperinflationary Economies) on incorrect base numbers for the corresponding (prior year) figures only. The auditor's review conclusion is available for inspection at the Group's registered office. The partner of this engagement was Fungai Kuipa (PAAB Practising certificate number 335).
Notes to the Interim Condensed Consolidated Financial Results
for the period ended 30 June 2022
Inflation Adjustments
For the purpose of fair presentation in accordance with International Accounting Standard 29 "Financial Reporting in Hyper Inflationary Economies" the financial statements have been restated for changes in the general purchasing power of the ZWL and appropriate adjustments have been made. The restatement has been calculated by means of conversion factors derived from the month on month Consumer Price Index (CPI) prepared by the Zimbabwe Statistical Agency. All items in the statement of comprehensive income are restated by applying the relevant monthly conversion factors. The conversion factors used are as follows:
Date | CPI | Conversion factor |
30-Jun-22 | 8 707,35 | 1,00 |
31-Dec-21 | 3 977,50 | 2,19 |
30-Jun-21 | 2 986,40 | 2,92 |
31-Dec-20 | 2 608,79 | 3,52 |
- Accounting policies
The principal accounting policies adopted in the presentation of these financial statements are consistent with those of the previous financial year. However the Group changed the classification of staff related expenses and other offices expenses which are directly associated with the management of properties from administration expenses to property expenses in line with regional listed property companies. The reclassification resulted in increase in property expenses and decrease in administration expenses with no effect on profit for the period.
- Reporting period and currency
The reporting period is 1 January 2022 to 30 June 2022. The financial statements are presented in Zimbabwean dollars (ZWL) being the functional and reporting currency of the primary economic environment in which the
Group operates. There was no change in the functional currency and reporting currency of the Group from the previous financial period. The Group used the RBZ auction rate to translate all transactions done in foreign currency to Zimbabwean dollars (ZWL).
- Going concern assumption
The Directors have assessed the ability of the Group to continue operating as going concerns and believe that the preparation of these interim condensed financial statements on a going concern basis is appropriate based on the Unaudited Historical financial performance for the half year of 2022. The business also continues to implement futuristic plans in response to the market trends to ensure sustainable earnings, with investments planned for Arundel Office Park expansion and participation in FMHL Group projects, retail land acquisitions and tenant driven expansion initiatives. In addition, borrowing capabilities continue to be pursued due to the positive cash flow generation. These all provide evidence of business continuity and the thrust to implement strategic plans and targets. It is to this effect that First Mutual Properties Limited interim condensed financial statements will continue to be prepared under the going concern basis.
- Fair value measurement
The Group's fair values of its investment properties are based on valuations performed by Knight Frank Zimbabwe an accredited independent valuer. Knight Frank is a specialist in valuing these types of investment properties and has recent experience in the location and category of the investment properties being valued. The valuations are based upon assumptions on future rental income, anticipated maintenance costs, future development costs and the appropriate discount rate. Where the market information is available, the valuers make use of market information from transactions of similar properties . Significant judgements were applied as at 30 June 2022 as a result of the uncertainties resulting from the hyperinflationary economic environment, currency shifts, excessive market volatility and lack of recent transactions conducted in ZWL.
Inflation adjusted | Historical | ||||
6.1 | Investment Properties | ||||
30 Jun 2022 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 | |||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||
At 1 January | 48 246 709 | 33 062 434 | 22 039 000 | 9 395 892 | |
Additions | 81 836 | - | 44 794 | - | |
Disposals | (58 055) | - | (40 756) | - | |
Transfer to held for sale | (28 000) | - | (28 000) | - | |
Improvements to existing properties | 3 480 | 45 940 | 3 480 | 15 756 | |
Fair value adjustments | 29 743 530 | 15 138 335 | 55 970 982 | 12 627 352 | |
Closing Balance | 77 989 500 | 48 246 709 | 77 989 500 | 22 039 000 | |
6.2 Investment property held for sale
During the half year ended 30 June 2022, the directors of First Mutual Properties Limited decided to dispose of a parcel of land, known as Good hope, Borrowdale, Harare as part of the Group's ongoing capital recycling strategy. Conditions for the classification as held for sale (as stipulated in IFRS 5- Non-current assets held for sale and discontinued operations) were met as at 30 June 2022. The asset was reclassified to current assets from investment property as disclosed below.
Inflation adjusted | Historical | ||||
6.2 | Investment property held for sale | ||||
30 Jun 2022 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 | |||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||
At 1 January | - | 171 780 | - | 48 818 | |
Reclassification to held for sale | 28 000 | - | 28 000 | - | |
Fair value adjustment | - | 7 005 | - | 2 402 | |
Disposal | - | (178 785) | - | (51 220) | |
Closing Balance | 28 000 | - | 28 000 | - | |
6.3 Valuation techniques and inputs
Valuation techniques used to derive level 3 fair values
The table below presents the following for each class of the investment property:
- the fair value measurements at the end of the reporting period;
- the level of the fair value hierarchy (in this case level 3) within which the fair value measurements are categorized in their entirety;
- a description of the valuation techniques applied;
- the inputs used in the fair value measurement, including the ranges of rent charged to different units within the same building; and
- level 3 fair value measurements, quantitative information about the significant observable inputs used in the fair value measurement.
2 | |
Directors: E K Moyo (Chairman), A M Chidakwa, D Hoto, S Jogi, C K Manyowa*, W M Marere, E Mkondo, T Ruvingo, S Wekwete (* Executive Director) |
First Mutual Properties, First Mutual Park, First Floor, 100 Borrowdale Road, Borrowdale, Harare, Zimbabwe | P O Box MP 373, Mt Pleasant, Harare | Tel: +263 (242) 886 121 - 4 | Email: info@firstmutualproperties.co.zw | Website: www.firstmutual.co.zw | +263 778 917 309
Reviewed Abridged Financial Results
For the half year ended 30 June 2022
ADRENALIN 16755
Notes to the Interim Condensed Consolidated Financial Results
for the period ended 30 June 2022
All figures in ZWL 000 | ||||||||
Fair value Valuation | Key Unobservable | |||||||
Class of Property | 30-Jun 2022 Technique | Inputs | ||||||
Optimal Rental Per | ZWL1 400-ZWL2 500 | Range | ||||||
Square Metre | ||||||||
CBD Offices | 13 850 000 Income | Return on Optimal | 5.5.00%-8.5% | Range | ||||
Capitalisation | Rental | |||||||
Vacancy Rate | 26% | weighted average | ||||||
Optimal Rental Per | ZWL3 000-ZWL4 000 | Range | ||||||
Square Metre | ||||||||
Office Parks | 21 150 000 Income | Return on Optimal | 5.00%-6.00% | Range | ||||
Capitalisation | Rental | |||||||
Vacancy rate | 13% | weighted average | ||||||
Optimal Rental Per | ZWL2 000 -ZWL5 700 | Range | ||||||
Square Metre | ||||||||
CBD Retail* | 10 309 800 Income | Return on Optimal | 4.00%-5.00% | Range | ||||
Capitalisation | Rental | |||||||
Vacancy rate | 0% | |||||||
Optimal Rental Per | ZWL2 500 -ZWL5 000 | Range | ||||||
Square Metre | ||||||||
Suburban Retail* | 4 665 000 Income | Return on Optimal | 4.00%-5.00% | Range | ||||
Capitalisation | Rental | |||||||
Vacancy rate | 0% | |||||||
Optimal Rental Per | ZWL700 - ZWL1 700 | Range | ||||||
Square Metre | ||||||||
Industrial | 7 145 000 Income | Return on Optimal | 7.00%-10.00% | Range | ||||
Capitalisation | Rental | |||||||
Vacancy rate | 0% | |||||||
Residential | 2 833 500 Market | Comparable | ||||||
Comparable | transacted Property | |||||||
Prices | ||||||||
Land - Residential | - Market | Rate per square | ZWL12 000.00- | Range | ||||
Comparable | metre | ZWL21 000.00 | ||||||
Comparable | ||||||||
Transacted land | ||||||||
Prices | ||||||||
Land - Commercial | 18 036 200 Market | Rate per square | ZWL25 000.00- | Range | ||||
Comparable | metre | ZWL50 000.00 | ||||||
Comparable | ||||||||
Transacted land | ||||||||
Prices | ||||||||
Total | 77 989 500 | |||||||
Inflation adjusted | Historical | |||||||
7 | Investment in associate | |||||||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 31 Dec 2021 | ||||||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | |||||
As at 1 January | 27 455 | - | 8 702 | - | ||||
Additions | - | 27 455 | - | 8 702 | ||||
Closing Balance | 27 455 | 27 455 | 8 | 702 | 8 702 | |||
Inflation adjusted | Historical | |||||||
8 | Vehicles and Equipment | |||||||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 31 Dec 2021 | ||||||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | |||||
At I January | 17 881 | 14 923 | 2 833 | 176 | ||||
Additions | 7 715 | 9 745 | 3 877 | 3 291 | ||||
Disposals | (111) | (376) | (3) | (138) | ||||
Depreciation | (5 080) | (6 411) | (532) | (496) | ||||
Closing Balance | 20 405 | 17 881 | 6 | 175 | 2 833 | |||
Inflation adjusted | Historical | |||||||
9 | Financial Assets at fair value through profit or | |||||||
loss - Unquoted shares | ||||||||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 31 Dec 2021 | ||||||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | |||||
At 1 January | 18 473 | 16 667 | 8 438 | 4 737 | ||||
Fair value adjustment | 8 712 | 1 806 | 18 747 | 3 701 | ||||
Closing Balance | 27 185 | 18 473 | 27 | 185 | 8 438 | |||
The Group has an investment of 8.91% of the ordinary shares of First Mutual Property Fund One (Private) Limited ("FMPFO") which is incorporated and domiciled in Zimbabwe and is unquoted. The fair value of the Group's investment in FMPFO is based on the net asset value of FMPFO. FMPFO is a property holding company which owns one building that is leased out to one tenant. The building constitutes 98% of the total assets of FMPFO. The fair value of the building was therefore a significant element in determining the net asset value of FMPFO. The building was valued by an independent valuer using the income approach. The investment in FMPFO is categorised as level 3 in the IFRS 13 'Fair value measurement' hierarchy. This implies that the fair value is determined with reference to unobservable inputs. Key unobservable inputs used in the valuation included rental per square metre and the capital rate/prime yield. The total lettable space is 2 508 square metres.
The key inputs that were used to value the building that is owned by FMPFO are:
Key | |||||
Fair Value as | Valuation unobservable | Range of | Sensitivity of the | ||
Class of property | at 30-Jun-22 | technique | inputs | inputs | input to fair value |
10% (2021: 10%) | |||||
increase (decrease) | |||||
in the growth rate | |||||
would result in an | |||||
Optimal Rental | increase (decrease) | ||||
Per Square | ZWL2 500 | in fair value by ZWL | |||
Fair value of the Full | Income | Metre Capital | -ZWL5 000 40,000,000 (2021: ZWL | ||
Fund (CBD retail) | 400 000 000,00 | Capitalisation | rate | 4.00%-5.00% | 12,375,000) |
Notes to the Interim Condensed Consolidated Financial Results
for the period ended 30 June 2022 | |||||
Inflation adjusted | Historical | ||||
9.1 Financial Assets at fair value through profit or | |||||
loss - Quoted shares | 30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 | |
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||
As at January | 3 061 | - | 1 398 | - | |
Additions | - | 2 337 | - | 897 | |
Fair value adjustment | 461 | 724 | 2 124 | 501 | |
3 522 | 3 061 | 3 522 | 1 398 | ||
10 | Financial Assets at Amortised Cost | ||||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 31 Dec 2021 | |||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||
Treasury bills | 200 | 438 | 200 | 200 | |
Housing bonds | - | 417 | - | 190 | |
200 | 855 | 200 | 390 | ||
11 | Trade and Other Receivables | ||||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 31 Dec 2021 | |||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||
Tenant receivables | 113 260 | 158 115 | 113 260 | 72 226 | |
Tenant operating cost recoveries | 36 450 | 69 806 | 36 450 | 31 888 | |
Trade receivables | 149 710 | 227 921 | 149 710 | 104 114 | |
Less: Allowance for Credit Losses | (59 706) | (72 633) | (59 706) | (33 179) | |
Net Trade Receivables | 90 004 | 155 288 | 90 004 | 70 935 | |
Prepayments | 234 784 | 257 632 | 198 437 | 98 177 | |
Other receivables | 18 814 | 27 539 | 18 814 | 12 580 | |
Related party receivables | 4 632 | 24 048 | 4 632 | 10 985 | |
348 234 | 464 507 | 311 887 | 192 677 | ||
11.1 | Reconciliation of allowance for credit losses | ||||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 31 Dec 2021 | |||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||
At 1 January | 72 633 | 29 308 | 33 179 | 8 781 | |
Add: Charge for the year | 26 528 | 53 410 | 26 527 | 24 398 | |
Effect of inflation | (39 455) | (10 085) | - | - | |
59 706 | 72 633 | 59 706 | 33 179 | ||
11.2 Analysis of Allowance for Expected Credit Losses (Inflation adjusted)
June 2022 | ||||||
ZWL 000 | Current | 30 days + | 60 days + | 90 days + | 120 days + | Total |
Expected loss rate | 7,39% | 14,97% | 23,77% | 44,61% | 100% | |
Gross carrying amount of trade | ||||||
receivables provided for | 44 935 | 22 625 | 13 961 | 9 165 | 45 112 | 135 798 |
Credit loss allowance* | 3 322 | 3 386 | 3 318 | 4 089 | 45 112 | 59 227 |
Expected loss rate | 3,43% | 3,43% | 3,43% | 3,43% | 3,43% | |
Gross carrying amount-trade | ||||||
receivables provided for | 10 218 | 467 | 175 | 2 044 | 1 080 | 13 984 |
Credit loss allowance** | 350 | 16 | 6 | 70 | 37 | 479 |
Total credit loss allowance | 3 673 | 3 402 | 3 324 | 4 159 | 45 149 | 59 706 |
December 2021 | ||||||
ZWL 000 | Current | 30 days + | 60 days + | 90 days + | 120 days + | Total |
Expected loss rate | 6,65% | 13,37% | 32,56% | 41,56% | 100% | |
Gross carrying amount of trade | ||||||
receivables provided for | 78 310 | 33 512 | 27 405 | 12 703 | 47 428 | 199 358 |
Expected Credit loss allowance* | 5 212 | 4 482 | 8 922 | 5 280 | 47 428 | 71 324 |
Expected loss rate | 4,52% | 4,52% | 4,52% | 4,52% | 4,52% | |
Gross carrying amount of trade | ||||||
receivables provided for | 5 594 | 1 006 | 2 127 | 6 850 | 13 407 | 28 984 |
Expected Credit loss allowance** | 253 | 45 | 96 | 309 | 606 | 1 309 |
Total credit loss allowance | 5 464 | 4 527 | 9 018 | 5 589 | 48 034 | 72 633 |
11.2 Analysis of Allowance for Expected Credit Losses (Historical data)
June 2022 | ||||||
ZWL 000 | Current | 30 days + | 60 days + | 90 days + | 120 days + | Total |
Expected loss rate | 7,39% | 14,97% | 23,77% | 44,61% | 100% | |
Gross carrying amount of trade | ||||||
receivables provided for | 44 935 | 22 625 | 13 961 | 9 165 | 45 112 | 135 798 |
Credit loss allowance* | 3 322 | 3 386 | 3 318 | 4 089 | 45 112 | 59 227 |
Expected loss rate | 3,43% | 3,43% | 3,43% | 3,43% | 3,43% | |
Gross carrying amount-trade | ||||||
receivables provided for | 10 218 | 467 | 175 | 2 044 | 1 080 | 13 984 |
Credit loss allowance** | 350 | 16 | 6 | 70 | 37 | 479 |
Total credit loss allowance | 3 672 | 3 402 | 3 324 | 4 159 | 45 149 | 59 706 |
December 2021 | ||||||
ZWL 000 | Current | 30 days + | 60 days + | 90 days + | 120 days + | Total |
Expected loss rate | 6,65% | 13,37% | 32,56% | 41,56% | 100% | |
Gross carrying amount of trade | ||||||
receivables provided for | 35 806 | 15 308 | 12 518 | 5 803 | 21 665 | 91 100 |
Expected Credit loss allowance* | 2 381 | 2 047 | 4 076 | 2 412 | 21 665 | 32 581 |
Expected loss rate | 4,52% | 4,52% | 4,52% | 4,52% | 4,52% | |
Gross carrying amount of trade | ||||||
receivables provided for | 2 555 | 459 | 972 | 3 129 | 6 124 | 13 239 |
Expected Credit loss allowance** | 115 | 21 | 44 | 141 | 277 | 598 |
Total credit loss allowance | 2 496 | 2 068 | 4 120 | 2 553 | 21 942 | 33 179 |
*Credit loss allowance at different loss rates **Credit loss allowance at 4.52%
Change of provisioning matrix
As at 30 June 2022, the Group revised its Expected Credit Loss (ECL) provisioning matrix in line with changes in market and economic conditions affecting the tenants ability to settle their arrears. The revision took into account historical data for the past three years. Forward looking information was incorporated by adjusting historical loss rates using estimated GDP movements in the Zimbabwean economy.
3 | |
Directors: E K Moyo (Chairman), A M Chidakwa, D Hoto, S Jogi, C K Manyowa*, W M Marere, E Mkondo, T Ruvingo, S Wekwete (* Executive Director) |
First Mutual Properties, First Mutual Park, First Floor, 100 Borrowdale Road, Borrowdale, Harare, Zimbabwe | P O Box MP 373, Mt Pleasant, Harare | Tel: +263 (242) 886 121 - 4 | Email: info@firstmutualproperties.co.zw | Website: www.firstmutual.co.zw | +263 778 917 309
Reviewed Abridged Financial Results
For the half year ended 30 June 2022
ADRENALIN 16755
Notes to the Interim Condensed Consolidated Financial Results
for the period ended 30 June 2022
Inflation adjusted | Historical | ||||
12 Cash and Cash Equivalents | |||||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 | ||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||
Short-term Investments | 177 130 | 25 500 | 177 130 | 11 648 | |
Cash at Bank: USD | 573 148 | 454 899 | 573 148 | 207 797 | |
ZWL | 28 736 | 24 851 | 28 736 | 11 352 | |
779 014 | 505 250 | 779 014 | 230 797 | ||
Inflation adjusted | Historical | ||||
13 | Deferred Tax Liability | ||||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 | ||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||
1 January | 5 702 520 | 2 965 728 | 2 598 083 | 841 971 | |
Recognised in the statement of profit or loss | |||||
-Arising on inventory | (162) | (257) | - | - | |
-Arising from prepayments | 2 640 | 3 960 | - | - | |
-Arising on vehicles and equipment | 1 024 | (174) | 317 | 61 | |
-Arising on investment properties | 4 792 523 | 2 731 190 | 7 893 146 | 1 761 443 | |
-Arising on financial assets at fair value through | |||||
profit or loss | 462 | 90 | 884 | (2 231) | |
-Arising on provisions for credit losses | 3 196 | (10 317) | (6 558) | (6 031) | |
-Arising on leave pay provisions | 67 | 12 300 | (1 891) | 2 870 | |
10 502 270 | 5 702 520 | 10 483 981 | 2 598 083 | ||
Inflation adjusted | Historical | ||||
14 Trade and Other Payables | |||||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 | ||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||
Income received in advance | 200 374 | 18 236 | 180 636 | 7 100 | |
Related party payables | 50 851 | 14 355 | 50 851 | 6 558 | |
Sundry payables | 89 174 | 108 817 | 89 174 | 49 707 | |
Trade payables | 66 594 | 86 433 | 66 594 | 39 480 | |
Leave pay provision | 14 321 | 14 596 | 14 321 | 6 667 | |
Group company payables | 7 601 | 18 587 | 7 601 | 8 491 | |
428 915 | 261 024 | 409 177 | 118 003 | ||
Inflation adjusted | Historical | ||||
15 | Revenue | ||||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 | ||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||
Rental income | 725 122 | 581 372 | 468 332 | 186 851 | |
Property Services income | 21 152 | 14 088 | 17 431 | 4 565 | |
746 274 | 595 460 | 485 763 | 191 416 | ||
Inflation adjusted | Historical | ||||
16 | Property Expenses | ||||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 | ||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||
Maintenance costs | 110 983 | 45 737 | 85 444 | 14 782 | |
Property security and utilities | 7 086 | 5 659 | 5 567 | 1 807 | |
Valuation fees | 1 581 | 1 864 | 761 | 591 | |
Operating cost under recoveries | 74 854 | 99 085 | 55 930 | 31 713 | |
Staff costs* | 200 603 | 68 006 | 134 926 | 28 825 | |
Other costs* | 77 443 | 43 099 | 53 623 | 18 268 | |
472 550 | 263 450 | 336 251 | 95 986 | ||
16.1 *Reclassification effect on property expenses and administration
The Group changed the classification of staff related expenses and other offices expenses which are directly associated with the management of properties from administration expenses to property expenses in line with regional listed property companies. The effect of the reclassification is disclosed below.
Notes to the Interim Condensed Consolidated Financial Results
for the period ended 30 June 2022
Inflation adjusted | Historical | ||||||||
20 Other Income | |||||||||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 31 Dec 2021 | |||||||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||||||
Exchange gains | 543 217 | (11 813) | 435 179 | (4 382) | |||||
Shared service recoveries | 29 137 | 16 629 | 18 510 | 5 378 | |||||
Sundry income* | 9 176 | 430 | 20 877 | 142 | |||||
Disposal of Property Plant and Equipment | 119 | - | 87 | - | |||||
Other income** | 879 | 56 | 587 | 18 | |||||
582 528 | 5 302 | 475 240 | 1 156 | ||||||
*Sundry income consists of lease fees, Operating Cost fee income and bad debts recovered | |||||||||
**Other income consists of exhibition fee income (2021) and proceeds from insurance claim (2022) | |||||||||
Inflation adjusted | Historical | ||||||||
21 Income Tax Expense/ (Credit) | |||||||||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 31 Dec 2021 | |||||||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||||||
Current income tax | 45 255 | 24 906 | 45 255 | 8 542 | |||||
Deferred tax | 4 799 725 | (2 552 730) | 7 885 973 | 53 682 | |||||
4 844 980 | (2 527 824) | 7 931 228 | 62 224 | ||||||
INFLATION ADJUSTED - AUDITED | 2022 | ||||||||
22 Segment Reporting for the half year ended 30 June 2022 | |||||||||
Consolidation | |||||||||
Office | Retail | Industrial | Other | Jrnls | Total | ||||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ||||
Revenue | 371 901 | 228 066 | 89 348 | 180 942 | (123 984) | 746 273 | |||
Property expenses and | |||||||||
allowance for credit losses | (130 481) | (40 910) | (10 419) | (317 268) | - | (499 078) | |||
Segment results | 241 420 | 187 156 | 78 929 | (136 326) | (123 984) | 247 195 | |||
Fair value adjustment - | |||||||||
Investment property | 13 971 572 | 4 988 453 | 2 694 779 | 8 088 726 | - | 29 743 530 | |||
Segment profit | 14 212 992 | 5 175 609 | 2 773 708 | 7 952 400 | (123 984) 29 990 725 | ||||
Employee related expenses | - | - | - | (55 002) | - | (55 002) | |||
Other Expenses | (249) | (38) | (1) | (248 505) | 123 984 | (124 809) | |||
Finance income | 26 586 | 8 660 | 5 921 | 9 549 | - | 50 716 | |||
Other income | 394 987 | - | - | 187 541 | - | 582 528 | |||
Net monetary loss | - | - | - | - | (534 445) | (534 445) | |||
Profit before income tax | |||||||||
expense | 14 634 316 | 5 184 231 | 2 779 628 | 7 845 983 | (534 445) | 29 909 713 | |||
Reconciliation of Segment Results for 30 June 2022 | |||||||||
All figures in ZWL | Office | Retail | Industrial | Other | Consolidation | Total | |||
Jrnls | |||||||||
Assets | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | |||
Investment Property | 35 000 000 | 14 974 800 | 7 145 000 | 20 869 700 | - | 77 989 500 | |||
Trade receivables | 47 069 | 19 471 | 17 792 | 39 308 | (33 636) | 90 004 | |||
Segment Assets | 35 047 069 14 994 271 | 7 162 792 20 909 008 | (33 636) | 78 079 504 | |||||
Other non-current assets | - | - | - | 78 768 | - | 78 768 | |||
Other current assets | - | - | - | 1 066 242 | (844) | 1 065 398 | |||
Total Assets | 35 047 069 14 994 271 | 7 162 792 22 054 018 | (34 480) | 79 223 670 | |||||
Current Liabilities | 225 800 | 20 424 | 4 792 | 226 499 | (34 480) | 443 035 | |||
Capital expenditure | 3 480 | - | - | - | - | 3 480 | |||
2021 | |||||||||
Segment Reporting for the half year ended 30 June 2021 | |||||||||
Consolidation | |||||||||
All figures in ZWL | Office | Retail | Industrial | Other | Jrnls | Total | |||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 |
16.1
Increase in property expenses
Decrease in employee related expenses
Decrease in other expenses
-
Profit before income tax takes into account the following
Directors fees -for services as directors
Audit fees
Information communication and technology expenses
Fees and other charges Depreciation
Office costs
Group shared services - Fair value adjustments
Fair value adjustment on investment properties Fair value adjustment on investment property held for sale - Finance Income
Interest on overdue tenants accounts Interest on money market investments
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 |
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 |
278 046 | 111 105 | 188 549 | 47 093 |
(200 603) | (68 006) | (134 926) | (28 825) |
(77 443) | (43 099) | (53 623) | (18 268) |
- | - | - | - |
Inflation adjusted | Historical | ||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 |
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 |
7 628 | 8 746 | 4 853 | 1 882 |
7 773 | 5 207 | 4 547 | 1 132 |
3 280 | 10 172 | 2 404 | 813 |
26 813 | 6 465 | 18 278 | 3 013 |
5 080 | 2 280 | 106 | 44 |
13 192 | 23 896 | 12 272 | 1 039 |
57 496 | 42 182 | 39 317 | 13 593 |
Inflation adjusted | Historical | ||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 |
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 |
29 743 530 | (4 628 417) | 55 970 982 | 356 254 |
- | (23 176) | - | 2 150 |
29 743 530 | (4 651 593) | 55 970 982 | 358 404 |
Inflation adjusted | Historical | ||
30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 |
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 |
48 392 | 7 447 | 30 451 | 2 401 |
2 324 | 501 | 1 877 | 161 |
50 716 | 7 948 | 32 328 | 2 562 |
Revenue | 357306 | 150370 | 45301 | 99295 | (56812) | 595460 |
Property expenses and | ||||||
allowance for credit losses | (94537) | (16290) | (7426) | (162470) | - | (280723) |
Segment results | 262 769 | 134080 | 37875 | (63175) | (56812) | 314737 |
Fair value adjustment - | ||||||
Investment property | (2333023) | (405388) | (489814) | (1423368) | - | (4651593) |
Segment profit | (2070254) | (271308) | (451 939) | (1486543) | (56812) | (4336856) |
Employee related expenses | - | - | - | (83715) | - | (83715) |
Other Expenses | (37391) | (24838) | (8040) | (122084) | 87120 | (105233) |
Finance income | 4103 | 1569 | 504 | 1772 | - | 7948 |
Other income | (22516) | - | - | 27818 | - | 5302 |
Net monetary gain | - | - | - | - | (73569) | (73569) |
Loss before income tax | ||||||
expense | (2126058) | (294 577) | (459 475) | (1662752) | (43261) | (4586123) |
Reconciliation of Segment Results for 31 December 2021 | ||||||
Consolidation | ||||||
All figures in ZWL | Office | Retail | Industrial | Other | Jrnls | Total |
Assets | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 |
Investment Property | 20 720 319 | 9 835 420 | 4 540 300 | 13 150 670 | - | 48 246 709 |
Trade receivables | 82 055 | 37 109 | 20 855 | 17 117 | (1 848) | 155 288 |
Segment Assets | 20 802 374 | 9 872 529 | 4 561 155 | 13 167 787 | (1 848) 48 401 997 | |
Other non-current assets | - | - | - | 67 725 | - | 67 725 |
Other current assets | - | - | - | 815 521 | - | 815 521 |
Total Assets | 20 802 374 | 9 872 529 | 4 561 155 | 14 051 033 | (1 848) 49 285 243 | |
Current Liabilities | 62 637 | 15 168 | 5 095 | 190 756 | 1 866 | 275 522 |
Capital expenditure | 2 547 | 43 516 | - | - | - | 46 063 |
4 | |
Directors: E K Moyo (Chairman), A M Chidakwa, D Hoto, S Jogi, C K Manyowa*, W M Marere, E Mkondo, T Ruvingo, S Wekwete (* Executive Director) |
First Mutual Properties, First Mutual Park, First Floor, 100 Borrowdale Road, Borrowdale, Harare, Zimbabwe | P O Box MP 373, Mt Pleasant, Harare | Tel: +263 (242) 886 121 - 4 | Email: info@firstmutualproperties.co.zw | Website: www.firstmutual.co.zw | +263 778 917 309
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First Mutual Properties Ltd. published this content on 21 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 September 2022 07:29:06 UTC.