Zimre Holdings records 510 percent growth

Zimre Holdings Limited’s property portfolio recorded 510 percent growth in total rental income for the five months to May 31, 2023 on the back of USD leases.

The group’s property segment ZPI delisted from the Zimbabwe Stock Exchange (ZSE) in 2020. However, the segment has announced plans for listing a real estate investment trust (REIT) on the equities market.

This comes as the group is refocusing its investments towards infrastructure. The group has already registered the REIT known as Eagle REIT which is expected to launch two projects in Mazoe and the resort town of Victoria Falls.

“The location of these developments is not by chance as the group seeks to urbanise the communities, address the housing deficit and promote economic participation at all levels of society.

“The group’s property portfolio recorded a 510 percent growth in total rental income contributing 5 percent to the group’s total income on account of the conversion to USD leases, indexation and realignment of lease agreements to optmise value from rental properties,” said ZHL chief executive officer Stan Kudenga said in a trading update.

Overall, the group recorded total income for the period grew 554 percent to $22,36 billion from $3,42 billion during the same period last year on the back of an increase in United States dollar revenue inflows from local entities from 35 percent to 65 percent.

Kudenga said regional reinsurance operations contributed 54 percent to the group’s total gross premium written (GPW) and 36 percent to total income.

Life and pensions cluster accounted for 31 percent of the group’s total income, while local reinsurance and reassurance operations contributed 23 percent.

An operating profit of $4 billion was recorded during the period under review compared to $411 million achieved during the same period last year.-ebusinessweekly