Pearl Properties has recorded a 3,15% decline in revenue to $2,898 million for the four months ending April 30 2015 from the prior year due to liquidity challenges besetting the economy.
BY OUR STAFF
During the period under review, the company’s total arrears increased to $2,647 million as compared to the same period last year.
Speaking at the company’s annual general meeting recently, Pearl Properties managing director Francis Nyambiri’s cited the liquidity crunch as the main reason why tenants were failing to meet their financial obligations.
Pearl Properties reported a slight decline of the occupancy level which came in at 79,54% down from 79,93% in December 2014.
The total collections for Pearl properties for the four months amounted to $2,716 million.
“The persistent illiquidity resulted in a generally depressed economy that was limited to no growth in the productive sectors and restricted any meaningful prospects for growth in the property sector,” said Nyambiri.
Pearl Properties said the default rate had increased from $1,71 million in 2013 to $2,39 million last year.
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The company continued to refer defaulting tenants without an agreed plan to lawyers for collection and eviction as a way of mitigating losses on defaulting tenants and to ensure the space is released for reletting at the earliest practical date.
Pearl Properties’ rental yield stood at 7,24% at the end of the first quarter, which was slightly down from the same period last year at 7,47% which was a 3,07% year on year movement.
Rental yield of a property shows how much of an annual return a company is likely to make on an investment. For Pearl Properties the rental yield stood at 7,24% slightly down from the same period last year at 7,47%.
The company’s property expenses over total income had a slight uptick at 24,14% from 21, 19% from the same time last year showing a year on year change of 14,12% while property expenses increased by $73 700 to $ 357 300.
