HARARE, August 22 (The Source)- Zimre Property Investments on Tuesday reported a 7 percent decline in revenue to $2,76 million in the six month period to June, weighed down by a 14 percent fall in rental income as the property sector remained subdued.
The average portfolio rental yield remained at 7 percent while voids went up from 25 percent to 26 percent.
“The property sector was not spared as evidenced by the declining rental revenues as well as increasing debtors and voids. Demand for CBD offices and industrial space weakened further,” chairman Jean Maguranyanga said in a statement accompanying company results.
“Although retail space remained more resilient compared to other property sectors, there was a decline in rental rates and an increase in voids.”
Projects income for the period grew 3 percent from $1,08 million in the previous year to $1,11 million pushing operating profit up 9 percent from $430,000 to $470,000.
Administration costs were down 23 percent to $1,34 million when compared to the same period last year.
Profit after tax in the half year period was up from $571,907 last year to $613,526.
An interim dividend of 0,012 cents was declared.
Maguranyanga said demand for office is expected to remain depressed in the medium term.