PROPERTY investment holding company Dawn Properties Limited says the restructuring of lease agreements with its tenants is already in progress while steady progress continues to be made in the development of land in Marlborough as the company works on increasing profitability.
In a statement accompanying the financial results for the six months to September 2013, the company said the lease restructuring is expected to be completed in the second half of the financial year.
The development of the residential estate at Marlborough is also anticipated to be launched during the first half of 2014.
The company has been looking at lease restructuring as well as the development of land in Harare’s Marlborough area and restructuring of its consultancy business to help reduce costs and boost profitability.
The restructuring of lease contracts was necessitated by some clauses in its lease agreements which were causing problems in the management of the landlord/tenant relationships.
Dawn chief executive Mr Justin Dowa in September said the problem clauses in some of the leases were creating conditions where assets would not only continue to underperform but would gradually fall into a state of very serious disrepair.
He also said an application to increase densities and achieve re-oning in Marlborough by way of an amendment to the Local Area Plan had gone through the public display stage.
In the period under review, revenue remained flat at US$2,8 million.
Operating profit went up 185 percent to US$874 791 in the period under review from US$306 653 in the prior year as a result of the rationalisation completed in 2012 that led to the discontinuation of non-performing businesses. This led to a decrease in the profit margin for the period. Profit after tax went down 24 percent to US$800 792.
The group’s total assets went up by about 1 percent in the past six months to US$88 million while total liabilities remained flat in the same period at US$2,7 million.
Basic earnings per share went down to US0,033c from US0,041c in the prior year and headline earnings per share also went down from US$0,043c to US$0,022c in the period under review.