ZPI operating profit down 29pct in five months, looks to new projects to prop up revenues in H2

ZPI operating profit down 29pct in five months, looks to new projects to prop up revenues in H2

HARARE, June 23 (The Source)- Listed property developer Zimre Property Investments(ZPI) has reported a 29 percent decline in operating profit in the five months to May on reduced occupancy levels.

Rent income was down three percent at $1,5 million while total income, at $2,1 million, was 17 percent lower on the prior year.

Project sales amounted to $525,582 which was 44 percent lower than last year.

Managing director Edison Muvingi said performance was likely to improve in the second half of the year when the company kicks off new projects.

“We have not had any new projects coming through and running, but post half-year that is going to improve because we have a number of projects coming through,” Muvingi told reporters after the firm’s annual general meeting in Harare on Tuesday.

Muvingi said ZPI was expecting to deliver a 1,000 stands onto the market by end of year, including a new project in partnership with CFI in Glen View.

“We have a joint venture project that we are working on in conjunction with CFI which will give us about 700 stands as well as the one in Ruwa which is about to take off.”

“It’s the funding that we are working on. We are fundraising as we speak. All the necessary regulatory approvals have been received,” he said.