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ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019

OPERATING ENVIRONMENT

Added to these were Government policy changes that negatively affected planning and presented a challenging investment climate. Under these conditions, the real estate sector experienced multiple problems which included subdued demand for space, declining rental revenues in real terms, lower portfolio values in real terms, increasing debtors and high building operating expenses.


INVESTMENT PROPERTY PERFORMANCE

Key portfolio performance indicators remained stable. Portfolio void levels closed the year at 22% compared to 28% the previous year. There was severe pressure on rental rates during the year, particularly for office space. As a measure to curb value loss, the Company implemented quarterly upward rent reviews and increased its presence in the retail sector as well as in student accommodation. These measures, together with improved occupancy levels across the portfolio, had a positive impact on turnover performance for the year. Rent collection for the period averaged 101% of monthly charges.


FINANCIAL PERFORMANCE

The financial statements for the year ended 31 December 2019 have complied with the requirements of International Accounting Standard (IAS) 29 “Financial Reporting in Hyperinflationary Economies” which requires that financial statements be expressed in terms of a measuring unit current at the end of the reporting period.

Total revenue for the year increased by 8% to ZWL$30.12 million from ZWL$28.01 million achieved in 2018. Rental income marginally increased by 1.4% to ZWL$16.08 million from ZWL$15.85 million the year before. Projects income for the year amounted to ZWL$12.97 million, up from ZWL$11.28 million achieved the previous year, a 15% growth. Investment properties realized a fair value gain of ZWL$173.87 million for the year compared to a fair value loss of ZWL$56.85 million in 2018.


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