ZIMRE Property Investment Limited has recorded a 56% increase in after tax profit to $571 907 for the half-year ended June 30, 2016 spurred by an increase in revenue and a reduction in staff costs.
BY TARISAI MANDIZHA
In the same period last year, the company posed an after tax profit of $366 164.
Revenue grew by 13% to $2 764 705 from $2 449 041. Staff costs came down to $603 635 in the period under review from $657 578 realised in the comparable period in 2015.
In a statement accompanying the financial results, Zimre Property Investment Limited board chairperson Jean Maguranyanga said the operating environment deteriorated further during the period under review and as a result, effective demand for leased space and other real estate products remained subdued.
“In the short-to-medium term, declining rental revenues, voids and debtors will remain a significant risk in the property sector. Property values are likely to continue to decline,” she said.
“Demand for real estate will remain relatively weak in tandem with the overall economic performance. However, pockets of opportunities exist which your company is actively pursuing in order to diversify income. Cost containment will remain key to maintaining a positive performance.”
In the period under review, projects income increased by 75% to $1,08 million from $0,62 million realised in the comparable period in 2015 buoyed by the availability of new stands stocks at Zimre Park Ruwa.
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Total administration costs were $1,34 million compared to $1,42 million.
In the period under review, voids rose to an average of 25% for the period under review from an average of 21% in the prior year. Portfolio debtors increased by 5% to $2 million from $1,9 million over the same period .
Commenting on projects, Maguranyanga said servicing of Ruwa-Zimre Park extension was practically complete and the project was currently selling and to date 10% of the project has been sold. The project has a total market value of around $6 million.
She said the Masvingo project continues to sell although at a much slower rate.
Maguranyanga said the full cost of the project has been recovered and the total market value of the remainder of the project was $2,38 million.
