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ZIMRE Property Investments (ZPI) posted a loss-after-tax of $3 million for the year ended December 31, 2015 as the property sector continued to struggle.

Weak demand for leased space and real estate products in general contributed to ZPI’s rising voids and debtors, which negatively affected the firm’s revenues during the period under review.

The property firm’s voids rose to 22 percent from 18, 5 percent in 2014. Total revenue for FY2015 declined four percent to $5,4 million from $5,7 million the previous year.

However, despite the pressure on rental rates and an increase in voids, rental income marginally declined by one percent to $3,5 million from $3,6 million in 2014, said ZPI.

Projects income last year stood at $1,6 million, down from $2 million in 2014, a decline of 19 percent.

“The performance of project sales was negatively affected by the non-availability of new stand stocks, particularly in Harare,” said chairman Buzwani Mothobi in a statement accompanying the results.

Administration costs rose three percent to $3 million from $2,9 million the previous year.

Operating profit declined 33 percent to $0,68 million from $1 million in 2014. Going forward, ZPI says it has embarked on a number of new projects to ensure income diversification and also adopting several strategic initiatives to contain costs.

The board has declared a dividend of US0,012 cents per share for the FY2015. – BH24