ZIMRE Properties Investments Limited (ZPI) has posted a 29% decline in operating to $696 232 at the end of May 2015 due a decline in rental income, especially in the central business district (CBD).
BY TATIRA ZWINOIRA
Speaking at the company’s annual general meeting in Harare yesterday, ZPI managing director Edson Muvingi said a decline in project sales had also affected the listed firm.
“Last year we had significant projects that were running and this first quarter we have not had any new projects coming through and running, that explains the negative performance of projects,” Muvingi said.
“We must reduce that gap, but otherwise the general decline in the economy’s performance is reflective within the results that we have published.”
ZPI’s total income was $ 2, 1 million down 17% from the same period in 2014.
However, the building and projects costs were $536 053 down from the previous year which was $758 957 a 29% decline.
“We have lined up at least two projects that we want to execute within the second half of the year and that will reduce the curve in terms of project performance and enhance our revenue performance in general,” Muvingi said.
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“We can only rectify what we can control the economy’s performance is out of reach of what we can do but our projects side is what we can do effectively.”
Project sales declined by 44% to $525 582 from the previous year’s $933 084, ZPI said further showing the decline in the operations.
Further showing in the drop in profits was the decline in rent income at $1,45 million down 3% from last year’s $1,54 million. “Industry is badly affected. There is not much going on there. In terms of performance, that’s the worst performing sector,” he said.
“The office sector, CBD related, is another sector that has been affected very badly in terms of people moving out of the city centre and also in terms service provision.”
Muvingi said the office park type had also been affected, but reduced due to some void level that was significant in those areas.
“Which is why we have talked about restructuring of our portfolio. I think we are moving in the right direction,” said Muvingi.
Muvingi said that ZPI was looking to dispose some of their assets to save and acquire new ones.
“We think we can utilise in terms of anything that we harvest from the current CBD properties that we want to dispose of,” he said.
