ZPI revenue declines in the interim period

ZPI revenue declines in the interim period
Published: 22 August 2017
Property concern ZIMRE Property Investments Limited (ZPI) reported revenue for the half year to June 30, 2017 declined 7 percent to $2,57 million on weakening rental revenues due to depressed demand for property.

The property sector has not been spared from the deteriorating operating environment evidenced by declining rental rates and increasing debtors and voids.

Demand for central business district offices and industrial space weakened further in the period under review, although retail space was more resilient compared to property sectors.

Rental income declined by 14 percent over the same period from $1,64 million to $1,41 million.

Average portfolio rental yield remained at 7 percent while voids went up from 25 percent to 26 percent during the period under review.

Despite the decline in rental yields, operating profit grew 9 percent to $0,47 million compared to $0,43 million achieved in the prior period.

Projects income for the period grew 3 percent to $1,11 million from $1,08 million.Total assets marginally grew to $52,696 million. ZPI declared an interim dividend of 1,2 cents a share.

Although ZPI does not anticipate the operating environment to remain the same in the outlook period, the group has lined up major property development projects, expected to add to profitability and revenues.

One of the major projects the firm will embark on is the development of the Victoria Falls shopping mall whose construction is to commence "shortly".
- bh24
Tags: ZPI,

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