ZPI declares $0,5m dividend

HARARE - Zimre Property Investments (ZPI) has declared a $500 000 dividend for the year to December 2016, weathering difficult operating environment.

The listed property firm’s company secretary, Sibongile Mhlanga, yesterday said the dividend — which is $0,029 per share — would be paid to shareholders beginning of next month.

“The board of directors of ZPI has recommended a final dividend of $497 833 for the year ended December 31, 2016 in respect of all ordinary shares of the company. The dividend is payable in full to all shareholders registered in the books of the company at the close of business on June 2, 2017. The shares of the company will be traded cum-dividend on the Zimbabwe Stock Exchange up to the market day of May 30, 2017 and ex-dividend as from May 31, 2017,” she said.

In the full year to December 2016, ZPI’s investment portfolio reflected a difficult operating environment as the company recorded a six percent operating profit growth.

ZPI chairperson Jean Maguranyanga recently said ZPI’s property portfolio recorded a six percent decrease from $46,4 million to $43,8 million as the firm’s average yield also declined from eight percent to seven percent with voids rising to 24 percent from 22 percent. Revenue for the full year at $5,5 million went up marginally from $5,4 million.

“Due to pressures on rental rates and increase in voids, rental income declined 12 percent to $3,1 million from $3,5 million. Projects income for the year amounted to $2,2 million up from $1,6 million achieved in 2015, a 37 percent growth. The performance of project sales was buoyed by the availability of new stand stocks,” Maguranyanga said.

ZPI’s total revenue for the half year increased 13 percent to $2,7 million from $2,4 million.Projects income surged 75 percent to $1 million up from $620 000, driven by the availability of stands at the firm’s Ruwa development.

The ZPI boss said the firm had completed servicing its Zimre Park Extension (Ruwa) in November 2016 with stand disposal in progress.

In Masvingo, the realtor’s Zimre Park project has been selling at a slower rate, but the firm has fully recovered the cost of the project with the total market value of the reminder of the project estimated at $2,3 million.

In the future, the firm is looking at increasing its footprint in the property sector. This comes as the firm’s major shareholder, Zimre Holdings Limited, recently expressed intention to increase its stake in ZPI beyond the current 51 percent.

ZPI managing director, Edson Muvingi, is on record saying ZPI will also mainly focus on student accommodation in Bulawayo for Nust students and retail outlets rather than focusing on the saturated residential market.

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