CHAIRMANS STATEMENT

Operating Environment The economic environment remained stable with year-on-year in ation falling from 2.98% in February to close the period at 1.87% in June 2013. Liquidity remained a major challenge showing no signs of improvement particularly for the property sector. The sector experienced a signi cant increase in rent arrears and void space as some businesses ended up vacating, closing down or downsizing. Access to lines of credit for the sector remained constrained with both local and foreign lines of credit either too short and expensive for long-term property development projects or unavailable altogether. Inspite of these challenges, the Company posted positive results, achieving an operating pro t of US$1.60 million compared to US$1.48 million, an 8% improvement over the same period last year. Investment property performance Rental income was adversely a ected by the constrained liquidity situation with total rental income recording a 4% growth to US$1.94 million from US$1.86 million over the same period last year. Collection of rent also slackened due to the challenges being experienced in the economy and dropped to average 97% compared to 100% over the same period last year. Void ratio rose from 9.1% to 11.8%. Portfolio debtors grew by 19% within the six months period to June 2013 and have become a serious cause for concern. Rigorous e orts to collect and recover all outstanding debts are being pursued and will remain a priority focus area for the Company. A provision for doubtful debts of US$612,780 has therefore been made. Financial performance Total revenue was US$3.65 million, a 24% increase from US$2.93 million over the same period last year. Rental income contribution reduced signi cantly from a high of 70% in December 2012 to 53% in June 2013 as projects income contribution to total income increased from 21% to 43% over the same period. Total administration costs for the period under review increased by 31% compared to the same period last year resulting in an operating pro t of US$1.60 million. This was an 8% increase above the US$1.48 million posted in the prior year. Projects update I am pleased to advise that your Companys strategy to diversify income and pursue development projects continues to bear fruit. Zimre Park Masvingo A total of 153 stands out of 338 have been sold at a value of US$2.69 million. In terms of land area, this represents 43% of the entire project. Todate, 54% of the project cost of US$4.96 million has been recovered. Sales are progressing slowly due to the general down-turn in the economy and the lack of mortgage nance in particular. The expected total value of the project at current market prices is US$6.96 million giving an expected return of 41%. The standard of houses constructed in the development is excellent and the project has become the most upmarket residential suburb in the City. Tynwald Project Harare Since my last statement, the Tynwald Project has been completed and the rst phase has been sold out. Partial compliance for the project has been obtained from the City of Harare with full compliance expected by end of September 2013. To-date, a total of 151 stands have been sold at a value of US$1.64 million. This represents 44% of the total project in terms of land area and 60% of the project cost has been recovered. The total value of the project at current prices is estimated at US$3.84 million, an expected return of 41%. Disposal of the remaining project stands will commence at an appropriate time. Directorate Messrs E A M Ndudzo and M Murape resigned from the Board during the period under review. On behalf of the Board, I would like to thank them for their invaluable contributions to the Company. I also wish to welcome Ms Jean Maguranyanga and Mr Edwin Zvandasara who joined the Board during the same period. Dividend The Board has resolved to pass the interim dividend in order to fund ongoing projects and strategic asset purchases that the Company is pursuing. Outlook Your Company continues to actively seek and pursue opportunities to diversify and enhance the value of its property portfolio for the bene t of all stakeholders. Appreciation I wish to thank all shareholders, stakeholders, management and sta for the support and hard work over the period under review and lastly my fellow Board members for their support and wise counsel.
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ABRIDGED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2013
Unaudited 30/06/2013 US$ Note 836,658 48,162,006 7,792 49,006,456 5,596,893 1,763,060 409,641 147,446 7,917,040 56,923,496 Audited 31/12/2012 US$ 461,076 48,162,006 48,623,082 5,232,458 1,401,242 217,508 93,533 6,944,741 55,567,823

ABRIDGED INTERIM STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2013
Unaudited 6 months ended 30/06/2013 US$ 1,661,804 30,982 (125,502) 1,567,284 (816,062) 751,222 (249,896) 501,326 Unaudited 6 months ended 30/06/2012 US$ 1,441,391 92,015 (15,323) 1,518,083 (344,554) 1,173,529 (166,709) 1,006,820

ASSETS Non current assets Property and equipment Investment property Investment in associate company Current assets Inventories Trade and other receivables Held for trading investments Cash and cash equivalents Total assets EQUITY AND LIABILITIES Equity Share capital Share premium Retained earnings Non current liabilities Deferred tax Current liabilities Trade and other payables Short term loan Total liabilities Total equity and liabilities 6 7

4 5

CASH FLOWS FROM OPERATING ACTIVITIES Pro t before tax Adjustment for non cash items Interest received Cash ows before working capital changes Working capital changes Tax paid Net cash in ows from operations CASH FLOWS FROM INVESTING ACTIVITIES Purchase of equipment and vehicles Purchase of investment properties Other investments Interest received Dividend received Net cash out ows to investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayment of short-term borrowings Dividend paid Net cash out ows to nancing activities NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS AT END OF PERIOD

1,716,667 37,209,876 14,404,975 53,331,518 2,537,963 493,550 560,465 1,054,015 3,591,978 56,923,496

1,716,667 37,209,876 13,673,741 52,600,284 2,312,917 465,592 189,030 654,622 2,967,539 55,567,823

(411,725) (137,792) 125,502 (424,015)

(32,561) (100,477) (5,770) 15,323 473 (123,012)

843,939 (472,504) (394,833) (23,398) 53,913 93,533 147,446

(459,455) (326,250) (785,705) 98,103 378,488 476,591

ABRIDGED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPRHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2013
Unaudited 6 months ended 30/06/2013 US$ 3,508,131 21,988 115,327 2,655 3,648,101 (1,009,745) (1,038,685) 1,599,671 62,133 1,661,804 8 (535,737) 1,126,067 1,126,067 Unaudited 6 months ended 30/06/2012 US$ 2,807,364 15,323 112,847 (1,719) 2,933,815 (758,874) (682,855) (13,129) 1,478,957 (37,566) 1,441,391 (331,541) 1,109,850 1,109,850

NOTES TO THE ABRIDGED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2013 (continued....)
30/06/2013 31/12/2012 US$ US$ 5,566,401 30,492 5,596,893 3,908,779 1,314,287 9,392 5,232,458

Note Revenue Finance income Other income Other gains and losses Administration expenses Other operating expenses Share of loss of associate Operating pro t Fair value adjustments - held for trading investments Pro t before tax for the period Income tax expense Pro t after tax for the period Other comprehensive income Total comprehensive income for the period Earnings Per Share (EPS) Basic EPS (cents) Diluted EPS (cents) Headline EPS (cents)

Inventories Developed stands Land under development O ce consumables

The land is being developed so that it can be sold as residential stands. The projects are being carried out in Masvingo, Bulawayo and Harare. The market value of the developed land is USD7.9 million. 5 Trade and other receivables Trade receivables Other receivables Allowance for credit losses Closing balance 6 Trade and other payables Trade payables Other payables Short-term loan ZB Bank 560,465 189,030

1,561,824 814,016 2,375,840 (612,780) 1,763,060

1,398,719 558,332 1,957,051 (555,809) 1,401,242

0.07 0.07 0.06

0.06 0.06 0.07

335,897 157,653 493,550

275,823 189,769 465,592

NOTES TO THE ABRIDGED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2013
Accounting policies The same accounting policies and methods of computation have been followed in the interim nancial statements as compared with the annual nancial statements for the year ended 31 December 2012. 2 Basis of presentation The nancial statements are prepared on the historical cost basis except for investment property and held for trading investments which are shown at fair value. 3 Statement of compliance The abridged interim nancial statements have been prepared in accordance with IAS 34 - Interim Financial Reporting. 9 8

The loan was obtained to fund the Tynwald Project in Harare which commenced in November 2012. A $1.5 million facility was established for that purpose against which draw downs were made. The loan is for a period of twelve months at an interest rate of 18% per annum. The loan is secured by rst mortgage bonds over three properties namely Old Shell House, Nicoz House and Wetherby House which are in Harare. 30/06/2013 30/06/2012 US$ US$ Income tax Current Deferred 310,691 225,046 535,737 278,382 53,159 331,541

BD Mothobi Chairman 3 September 2013

Signi cant transactions Additions to property, equipment and vehicles 411,725 Projects income 1,549,414 Short-term loans raised 843,939 32,561 908,484 -

STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2013
Share Capital $ Balance as at 31 December 2011 Total comprehensive income for the period Dividend paid Balance as at 30 June 2012 Balance as at 31 December 2012 Total comprehensive income for the period Dividend paid Balance as at 30 June 2013 1,716,667 1,716,667 1,716,667 1,716,667 Share Premium $ 37,209,876 37,209,876 37,209,876 37,209,876 Retained Earnings $ 7,539,637 1,109,850 (326,250) 8,323,237 13,673,741 1,126,067 (394,833) 14,404,975 Total US$ 46,466,180 1,109,850 (326,250) 47,249,780 52,600,284 1,126,067 (394,833) 53,331,518

Turning Your Dream Into Realty

Property Investment Property Management Property Development Property Valuations PROPERTY SALES

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Capital commitments Approved but not contracted Contracted

30/06/2013 31/12/2012 US$ US$ 1,765,009 1,582,646 3,347,655 5,285,001 850,134 6,135,135

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

Zimre Property Investments Limited Registered O ce: 6th Floor, Fidelity Life Tower, 5 Raleigh Street, Harare Tel: 04 777139 / 777207 / 777157 / 748892 www.zimreproperties.co.zw

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