8/12/2019 ZPI Audited Results for FY Ended 31 Dec 13

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5 Investment property Opening balance Additions Transfer from inventory Disposal Transfer to property, vehicles and equipment Fair value adjustment

Investment properties were last valued on 31 December 2013 on an openmarket basis by Knight Frank who are professional and independent propertyvaluers. The Investment properties namely Old Shell House, Nicoz House andWetherby House were pledged as security as security for a loan from ZB Bank.

6 Inventories Developed stands Land under development

Oce consumables

The inventories mainly consist of residential stands intended for sale. Thestands are located in Masvingo, Bulawayo and Harare. The market value ofdeveloped stands is $6,422,197 (2012:$8,546,100).

7 Short-term loan ZB Bank

The loan is a 90-day renewable Bankers Acceptance (BA) whose next maturityis 31 March 2014. The loan was obtained to fund the purchase of commercialland in Harare. A $2 million facility was established for that purpose againstwhich a single draw-down of $1.3 million was made. The loan is at an interestrate of 20% per annum. The loan is secured by rst mortgage bonds overthree properties namely Old Shell House, Nicoz House and Whetherby Housewhich are in Harare.

8 Earnings per share Prot from continuing operations

attributable to the parent company

Number of shares used in calculatingearnings per share

Shares in issue Weighted average number of shares in issue

Basic earnings per share Basic earnings per share is calculated by dividing the prot attributable to

ordinary equity holders of the parent company by the weighted averagenumber of ordinary shares in issue during the year.

Headline earnings per share Headline earnings per share is calculated by dividing the headline earnings for

the period attributable to ordinary equity holders of the parent company bythe weighted average number of ordinary shares in issue during the year.

Headline earnings is calculated as follows: Prot for the year attributable to ordinary

equity holders of the parent (Prot)/loss on disposal of vehicles and equipment Impairment of assets Fair value loss on held for trading investments Fair value gain on investment property Headline earnings

9 Signicant transactions9.1 Additions to investment property9.2 Fair value gain on investment property9.3 Property development costs capitalised

to inventories9.4 Rent income earned9.5 Income from sale of stands

10 Cyclicality of operations

A signicant portion of the Companys revenue is derived from rentals andsale of residential stands. Due to the nature of the Companys income, there isno dened pattern of cyclicality or seasonality of operations and protability.

11 Supplementary information11.1 Depreciation charge11.2 Capital commitments Approved but not contracted Contracted

Capital commitments will be funded from a combination of internal andexternal resources.

12 Events after reporting date The Directors proposed a dividend of US$0.024 (2012: US 0.023) cents per

share at a Board meeting held on 10 March 2014. The dividend has not beenaccrued in these nancial statements.

ASSETS

Non current assetsProperty, vehicles and equipmentInvestment property

Current assetsInventoriesTrade and other receivablesRelated party receivablesHeld for trading investmentsCash and cash equivalents

Total assets

EQUITY AND LIABILITIES

Capital and reservesShare capitalShare premiumTreasury sharesRetained earnings

Non current liabilitiesDeferred tax

Current liabilitiesTrade and other payablesShort-term loanCorporate tax payable

Total liabilities

Total equity and liabilities

sold and 61% of the capital cost recovered from the achieved sales. Thereremains strong demand for the stands in the project. The lack of mortgageshas, however, slowed down uptake as most purchasers are cash buyers.

Tynwald - HarareThe Tynwald residential development project which I described in great detailin my last statement continues to perform well. By year-end, 59% of theproject had been sold and 72% of the project costs recovered. The total valueof the project is approximately US$3.7 million at current prices.

All major servicing and installation of infrastructure have been completed. TheCompliance Certicate for the greater part of the project has been issued byHarare City Council and several houses are at various stages of construction.Title deeds to the stands shall be issued as soon as the full ComplianceCerticate is received.DividendThe Board has recommended a nal dividend of US$0.024 (2012: US$0.023)cents per share payable on or about 7 May 2014 to shareholders registered inthe books of the Company as at 25 April 2014. The transfer books and registerof members will be closed from 26 April to 28 April 2014, all days inclusive.

OutlookThe economic environment remains extremely challenging. Property rentalsare likely to remain subdued and continued focus on projects will enhance theperformance of your company.

AppreciationI wish to thank all shareholders, stakeholders, management and sta for thesupport and hard work during the period under review and lastly my fellowBoard members for their support and wise counsel.

BD MothobiChairman

10 March 2014

Operating environmentThe economic environment remained challenging for all sectors of the

economy. Access to reasonably-priced long-term debt nance remaineddicult with most of the available lines of credit having too shortrepayment periods and prohibitively high interest rates for long-termproperty development projects. Ination declined from 2.51% in January2013 to close the year at 0.33%. The decline in annual ination has beenassociated with subdued demand for goods and services, aecting pricingstructures across all sectors of the economy.

The liquidity constraints negatively aected rental revenue growth andcollection, resulting in the continued rise in rental arrears and voids. Yourcompany has therefore had to increase the provision for doubtful debtorsto US$1.156 million from US$556,000 in 2012. Associated with the failureto pay for occupied space was a signicant increase in portfolio voids dueto tenant business failures. The void rate rose from 10.92% in December2012 to 14% in December 2013.

Despite this dicult operating environment, your company posted anoperating prot of US$1.96 million for the year ended 31 December 2013.

Investment property performanceRental income was US$3.87 million from US$3.81 million in 2012, a 2%growth. Rent reviews were limited with emphasis on collection that yieldeda 2013 average collection rate of 92% against 93% in 2012. Your companycontinues to employ various strategies to ensure an acceptable portfolioperformance. There was a noticeable increase in voluntary surrenders ofleased space in light of the dicult economic environment.

Eorts to manage the Companys portfolio mix with a view to diversifyboth the type and location of its properties are continuing. In line withthis thrust, two hectares of prime land were purchased during the year forUS$1.57 million for the future development of an oce park.

Financial performanceTotal revenue for the year increased to US$6.67 million compared toUS$5.20 million in the prior year, a 28% growth. This performance wasdespite an environment that saw economic contraction and signicantscaling down of operations by many entities. Rental income contributed56% to total income. Projects income for the year amounted to US$2.76million, up from US$1.31 million in 2012, a 110% growth. Clearly, projectsexecution has to-date been your companys distinct competitive advantagein line with the strategic thrust adopted after the introduction of the multi-currency system. Total administration costs went up by 11% during theyear under review compared to the same period last year, demonstratingrigorous cost management measures that were put in place. Otheroperating expenses, which include the cost of stands sold, went up by113% as more stands were sold in 2013 compared to the previous year.As a result, your company recorded an operating prot of US$1.96 million.

Projects updateZimre Park MasvingoResidential stands in the project continue to sell, though at a slower pace.The development has established itself as the prime residential destinationin Masvingo with an exceptional standard of houses being constructed. To

date, 172 of the 388 stands have been sold with revenue of US$3.8 millionhaving been generated. Based on land area, 46% of the project has been

1 Accounting policies The principal accounting policies adopted in the preparation of these abridged

nancial statements have been consistently applied to all the years presented.

2 Basis of presentation The abridged nancial statements are prepared on the historical cost basis except

for investment property and held for trading investments which are shown at fairvalue.

3 Currency The abridged nancial statements are expressed in United States dollars which is

both the functional and presentation currency.

CHAIRMANS STATEMENT

ABRIDGED STATEMENT OF CHANGESIN EQUITY | for the year ended 31 December 2013

ABRIDGED STATEMENT OFCASH FLOWS | fo the year ended 31 December 2013

2013US$

48,162,0062,158,096

186,816--

304,78950,811,707

2012US$

42,839,500802,877

-(220,000)(326,584)5,066,213

48,162,006

3,908,7791,314,287

9,3925,232,458

ABRIDGED STATEMENT OF PROFIT OR LOSS AND OTHERCOMPREHENSIVE INCOME |for the year ended 31 December 2013

RevenueFinance incomeOther income

Administration expensesOther operating expensesShare of loss of associateOperating prot

Fair value adjustments - investment property - held for trading investments

Prot before tax

Income tax expense

Prot after taxOther comprehensive incomeFair value adjustment on available for sale nancial assetTax relating to other comprehensive incomeOther comprehensive income for the year, net of tax

Total comprehensive income

Earnings per share (EPS)

Number of shares in issueBasic EPS (cents)Dilluted EPS (cents)Headline EPS (cents)

Audited2013US$

6,670,973258,76148,789

6,978,523

(2,553,833)(2,454,569)

(9,792)1,960,329

304,789(27,609)

2,237,509

(425,108)

1,812,401

---

1,812,401

1,716,666,6660.110.110.09

Note

8

Audited2012US$

5,199,475212,82119,459

5,431,755

(2,304,427)(1,150,825)

(8,110)1,968,393

5,066,213(40,006)

6,994,600

(534,246)

6,460,354

---

6,460,354

1,716,666,6660.380.380.09

ABRIDGED STATEMENT OFFINANCIAL POSITION |as at 31 December 2013

Audited2013US$

773,23250,811,70751,584,939

4,174,0951,893,562

211,397139,899101,745

6,520,698

58,105,637

1,716,66737,209,876

(195,719)15,091,30953,822,133

2,187,016

712,3041,308,168

76,0162,096,488

4,283,504

58,105,637

Note

5

6

7

Audited2012US$

461,07648,162,00648,623,082

5,232,4581,401,242

-217,508

93,5336,944,741

55,567,823

1,716,66737,209,876

-13,673,74152,600,284

2,312,917

465,592189,030

-654,622

2,967,539

55,567,823

CASH FLOWS FROM OPERATINGACTIVITIESProt before taxAdjustment for non-cash itemsInterest receivedCash ows before working capital changesWorking capital changes

Income tax paid

Net cash ows from operations

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of equipment and vehicles

Purchase of investment propertyOther investmentsInterest receivedDividend receivedProceeds from disposal of vehicles and equipmentProceeds from disposal of equitiesProceeds from disposal of investment propertyNet cash ows from investingactivities

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from short-term borrowingsRepayment of short-term borrowingsDividend paidPurchase of own sharesNet cash ows from nancingactivitiesNET INCREASE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

Audited2013US$

2,237,509432,771

(258,761)

2,411,519(305,821)

2,105,698(354,338)

1,751,360

(443,762)

(2,158,096)(9,792)258,761

-31,155

--

(2,321,734)

2,152,106(1,032,969)

(394,833)(145,719)

578,585

8,211

93,534

101,745

Audited2012US$

6,994,600(4,279,818)

(212,821)

2,501,961(850,426)

1,651,535(472,587)

1,178,948

(131,649)

(802,877)(163,865)212,821

150-

19,988220,000

(645,432)

208,000(700,220)(326,250)

-

(818,470)

(284,954)

378,488

93,534

Balance as at 31 December 2011

Total comprehensive income for the year

Dividend paid

Balance as at 31 December 2012

Total comprehensive income for the period

Share buy-back

Dividend paid

Balance as at 31 December 2013

ShareCapital

$

1,716,667

-

-

1,716,667

-

-

-

1,716,667

SharePremium

$

37,209,876

-

-

37,209,876

-

-

-

37,209,876

TreasuryShares

-

-

-

-

-

(195,719)

-

(195,719)

Total

$

46,466,180

6,460,354

(326,250)

52,600,284

1,812,401

(195,719)

(394,833)

53,822,133

RetainedEarnings

$

7,539,637

6,460,354

(326,250)

13,673,741

1,812,401

-

(394,833)

15,091,309

6th Floor, Fidelity Life Tower,5 Raleigh Street, Harare

Tel: 04 777139/207/157 / 748892www.zimreproperties.co.zw

Turning Your

Dreams Into Realty

Property Investment

Property Management

Property Development

Property Valuations

Estate Agency

Directors:BD Mothobi (Chairman), RG Muirimi (Vice Chairman), S Tembo, G Mushoma, E Zvandasara, J Maguranyanga, E Muvingi (Managing)

NOTES TO THE ABRIDGED FINANCIAL STATEMENTS for the year ended 31 December 2013

NOTES TO THE ABRIDGED FINANCIALSTATEMENTS (continued)

The nancial results for Zimre Property Investments Limited should be read inconjunction with the complete set of nancial statements for the year ended

31 December 2013, which have been audited by BDO Zimbabwe CharteredAccountants and an unmodied audit opinion issued thereon. The auditorsreport on the nancial statements is available for inspection at the Companysregistered oce.

The Directors are required by the Companies Act (Chapter 24:03) to maintainadequate accounting records and are responsible for the content andintegrity of the Companys abridged nancial statements and related nancialinformation included in this report. It is their responsibility to ensure that theCompanys abridged nancial statements fairly present the state of aairs ofthe Company as at the end of the nancial year and the results o f its operationsand cash ows for the year then ended in conformity with InternationalFinancial Reporting Standards.

AUDITORS STATEMENT

DIRECTORS RESPONSIBILITY STATEMENT

4,163,505-

10,5904,174,095

1,308,168

1,812,401

1,716,666,6661,716,666,666

6,460,354

1,716,666,6661,716,666,666

189,030

1,812,401

(30,979)-

27,609(304,789)

1,504,242

2,158,096304,789

2,067,0333,873,0282,755,926

6,460,3543,814

91,55340,006

(5,066,213)1,529,514

802,8775,066,213

1,734,7463,810,9381,311,754

131,606

745,7972,601,8583,347,655

83,056

5,285,001850,134

6,135,135

ABRIDGED AUDITED RESULTS FOR

THE YEAR ENDED 31 DECEMBER 2013

4 Statement of compliance The abridged nancial statements for the year ended 31 December 2013

have been prepared in accordance with International Financial ReportingStandards (IFRS).