CHAIRMAN’S STATEMENT

THE ECONOMY
The Government of Zimbabwe made fundamental economic policy changes to promote the country’s sustainable development aspirations including:
a) Adoption of the Zimbabwe dollar as the sole currency for all local transactions,
b) Addressing pricing distortions particularly of fuel, electricity and foreign currency, and
c) Raising the overnight interest rate from 15% to 50% per annum.

FINANCIAL PERFORMANCE
During the half year, rental income grew by 69.9% to $6.710 million (H12018: $3.949 million). This was mainly due to rent reviews, improved occupancy levels, improved turnover rentals on retail space and exchange gains on foreign currency denominated business. Occupancy levels improved by 8.4% to 82.8% (HY2018: 74.4%). Property expenses were up 62.11% for the period, on the back of high maintenance and operating costs. The operating expenditure rose across the board as suppliers pegged their prices to prevailing exchange rates. Net property income rose by 68.49% to $5.365 million (HY 2018: $3.184 million) due to the uplift in rental incomes. Administration expenses rose by 82.13% to $2.470 million from $1.356 million in June 2018…

DIVIDEND
At a meeting held on 21 August 2019, the Board resolved that no interim dividend will be declared from the profits for the half year ended 30 June 2019. This is to allow the business to reinvest into the portfolio to maximise shareholder value in the future.

OUTLOOK
Zimbabwe’s real GDP is projected to decline by 2.1% in 2019. The economy is, nonetheless, expected to rebound in the medium to long term as the benefits of the ongoing economic structural changes accrue. The timing of the recovery process will depend on efforts to stimulate production across all economic sectors, promote market confidence as well as ensuring policy consistency, clarity and predictability…

APPRECIATION
On behalf of your Board, I wish to thank all our stakeholders for their continued invaluable support.

E K Moyo
Chairman


Related download

FMP | 2019 Interim financial results.pdf