Harare – Zimbabwe Stock Exchange-listed property concern Zimre Property Investments Limited (ZPI) recorded a 124% increase in revenue to ZWL$3.37 million in the six months ended 30 June 2019 from $1.51 million achieved in the same period last year spurred by an increase in rental incomes.
Rental income went up to $1.51 million, a 47% improvement over the comparative period last year at $1.03 million.
“Rental income was boosted by the contribution of Sawanga Shopping Mall in Victoria Falls which partially opened in April 2019 and improved in‑ ows from the Bulawayo student accommodation facility which has increased occupancy levels to above 65%,” the Company’s Chairperson Jean Maguranyanga said in statement accompanying the financials.
Mr Maguranyanga said the Sawanga Shopping Mall which started trading in March this year is currently trading at 60% of its lettable space and is expected to reach 90% by end of September.
Projects income for the period increased by 323% to $1.75 million from $0.41 million in the same period last year.
Meanwhile, the Company recorded exchange gains of $3.31 million during the half year following the currency reforms of February 2019.
“The translation of investment property values, which were valued in United States of America dollars at 31 December 2018, to Zimbabwe dollars resulted in a fair value adjustment of $121.80 million for the half year,” Mr Maguranyanga said.
The Company’s total administration costs for the period went up by 68% to $1.81 million compared to $1.08 million in the previous comparative period.
Mr Maguranyanga said cost escalations were limited to 41% over a period where official inflation rose to 175.86% due to cost control measures deployed throughout the reporting period.
He said the currency reforms introduced during the half year resulted in investment property values increasing substantially in Zimbabwe dollar terms.
“As a result, there was a fair value adjustment of $121.80 million which gave rise to a pro t of $116.57 million for the period.
“The corresponding period in 2018 had recorded a loss of $0.20 million.”
On the outlook, Mr Maguranyanga said the Company expects a turbulent time that will have some negative impact on rentals and property returns in this period as the economy adjusts to the new currency changes and other statutory interventions.
“Your Company remains positive about the future of real estate in Zimbabwe,” he said.
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