Zimbabwe Stock exchange listed company, Zimre Properties disposed Zimre Centre in Harare for US$10.8 million, with the proceeds earmarked for the development of the Victoria Falls shopping mall as well as conversion of Nicoz House Bulawayo to students accommodation.
In its results for year ended 31 December 2017, Zimre Properties rental performance was 11% lower than prior year after recording US$2.78 million compared to US$3.14 million in 2016.
Group Chairperson, Jean Maguranyanga reported that total revenue for the year also declined by 4% to US$5.27 million from the US$5.52 million achieved in 2016.
“Investment properties were valued by independent valuers, Knight Frank at US$34.6 million, a 2% decline from the US$35.3 million in the prior year, the figure excludes Zimre Centre Harare.
“There was a marginal increase in the portfolio average yield from 7% in 2016 to 7.8% whilst voids increased from 24% in 2016 to 26%.
“Total revenue for the year declined by 4% to US$5.27 million from the US$5.52 million achieved in 2016. Contributing to the depressed revenue performance was rental income which declined by 11% to US$2.78 million from US$3.14 million in 2016.
“Projects income for the year amounted to US$2.40 million, 6% better than the US$2.27 million achieved in 2016,”said Maguranyanga.
She added that the group`s operating profit grew by 100%.
“As a result of a once-off employee rationalisation exercise and migration to the Total Cost to Company remuneration model which was completed during the year under review, employee costs increased by 26% to US$1.48 million from US$1.17 million in the previous year.
“Operating profit grew by 100% to US$1.44 million from US$0.72 million achieved in the prior year. A negative fair value adjustment on investment property of US$0.70 million was recorded as at 31 December 2017 compared to the US$2.81 million negative fair value adjustment in 2016. This resulted in profit for the year of US$2.49 million compared to a loss of US$1.45 million in 2016,” she said.
