First Mutual Holdings is targeting its US$31.5 million land bank as part of a capital recycling programme following the delisting of First Mutual Properties.
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Read E-PaperThe group’s investment property portfolio increased to US$150 million at June 2026 from US$139.7 million at December 2025, accounting for about 49% of its US$306 million asset base.
Management linked the delisting of First Mutual Properties to plans to develop the land bank and create alternative structures for financing the property portfolio.
“Unlocking the land bank was one of the factors behind the delisting of First Mutual Properties,” management said.
A parcel previously valued at about US$3.05 million was sold for approximately US$4.5 million during the period, generating a realised uplift of about US$1.45 million.
The group recorded US$4.5 million in investment-property disposals during the six months, while fair-value adjustments amounted to US$13.8 million.
The land bank recorded a revaluation increase of about US$5.7 million during the period, closing at approximately US$31.5 million.
The property portfolio comprised US$146 million in completed properties and US$4 million in properties under development at June 2026.
Profit after tax increased 222% to US$19.8 million from US$6.2 million, while net investment return rose 568% to US$13.7 million.
Fair-value gains on investment property increased to US$13.8 million from US$1 million, while insurance contract revenue rose 6% to US$92.8 million. The insurance service result declined 7% to US$13.2 million.
Equities generated US$12.3 million, representing about 90% of total investment return. Quoted equities contributed US$8.05 million, while unquoted equities generated US$3.85 million.
First Mutual generated US$4.4 million in net operating cash flow, compared with US$4.1 million in the corresponding period.
The cash-flow reconciliation excluded the US$13.8 million property fair-value gain and US$12.3 million in equity fair-value adjustments as non-cash items.
Management said the investment and property gains were market-driven and could vary between reporting periods.
“Every property will be reviewed against internal investment parameters,” management said.
First Mutual is also expanding regionally, targeting a long-term increase in regional insurance contract revenue contribution from about 18–20% to 40%.
The group has opened a Rwanda branch under its Botswana reinsurance operation and is pursuing a health insurance or medical-aid operation in Botswana.
Property recycling is therefore being pursued alongside regional expansion, with proceeds from potential disposals available for development and other investment opportunities.
The strategy places the land bank alongside regional expansion as management seeks additional growth opportunities.
