Zimre Holdings eyes high-yielding property market with REIT
Zimre Holdings (ZHL) says its property portfolio will tilt towards high yielding commercial and retail sectors through near liquid investment structures.
Group chairman, Desmond Matete said the group’s Eagle Real Estate Investment Trust (REIT) attained Prescribed Asset Status from the Insurance and Pensions Commission of Zimbabwe (IPEC) post the reporting period.
“It is anticipated that the Eagle REIT will bring much needed liquidity to the real estate market especially for Zimbabwe’s pensions community,” he said commenting on the group’s financials for the year ended December 31, 2023.
“As a conscious member of society, ZHL is determined to bring high impact sustainable investment opportunities to the public,” added Matete.
ZHL is a diversified investment holding company with sustainable core competencies in insurance and property with investments and operations located in Zimbabwe and the Southern African region.
Matete said the group will continue to consolidate on its experience and dynamism to enhance market share acquisition through innovations and new tools that embrace customer centric ecosystems which will create new value and change for its stakeholders.
“This will be buttressed by significant investment in technology platforms that enhance customer interface with our business and an enduring experience engendering long term customer loyalty,” he said.
During the year under review, the group’s profit increased by 321 percent from $72,4 billion to $304,9 billion in inflation adjusted terms and a 767 percent growth under historical cost terms, soaring to $528,1 billion.
Matete said across all key lines of business, including reinsurance and reassurance, short term insurance, life and pensions, real estate and wealth management, the business witnessed exceptional profitability in real terms throughout the year 2023.
He noted that that group is in a strong financial position with real growth in total assets and cash generation.
The group’s total assets uplifted by 81 percent to $1,180.2 billion from $650,5 billion in inflation adjusted terms and in historical cost total assets grew by 769 percent to $1,151.6 billion from $132,5 billion buoyed by growth in investment properties and equity investments which constituted 70 percent of total assets.
“The group’s healthy balance sheet position is evidence of its resilience and commitment to provide its stakeholders with Security, Growth and Profitability.
“Net cash generated from operating activities increased to $147,7 billion resulting in the net cash generated to operating profit ratio of 1.42 times an improvement from 0.93 times,” said Matete.
He added that cash generated has been applied to build up the cash wallet for the group for future growth.
During the period under review, insurance contract revenue experienced a remarkable increase of 140 percent, reaching $255 billion from $106,3 billion and was in historical cost achieved a growth of 779 percent with the revenue surging from $16,8 billion to $147,5 billion compared to the same period in the previous year.-businessweekly
