ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2013

sold and 61% of the capital cost recovered from the achieved sales. There remains strong demand for the stands in the project. The lack of mortgages has, however, slowed down uptake as most purchasers are cash buyers. Tynwald - Harare The Tynwald residential development project which I described in great detail in my last statement continues to perform well. By year-end, 59% of the project had been sold and 72% of the project costs recovered. The total value of the project is approximately US$3.7 million at current prices.

ABRIDGED STATEMENT OF CASH FLOWS | fo the year ended 31 December 2013

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustment for non-cash items Interest received Cash flows before working capital changes Working capital changes Income tax paid Net cash flows from operations CASH FLOWS FROM INVESTING ACTIVITIES Purchase of equipment and vehicles Purchase of investment property Other investments Interest received Dividend received Proceeds from disposal of vehicles and equipment Proceeds from disposal of equities Proceeds from disposal of investment property Net cash flows from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayment of short-term borrowings Dividend paid Purchase of own shares Net cash flows from financing activities NET 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 Audited 2013 US$ 2,237,509 432,771 (258,761) 2,411,519 (305,821) 2,105,698 (354,338) 1,751,360 Audited 2012 US$ 6,994,600 (4,279,818) (212,821) 2,501,961 (850,426) 1,651,535 (472,587) 1,178,948

CHAIRMANS STATEMENT
Operating environment The economic environment remained challenging for all sectors of the economy. Access to reasonably-priced long-term debt finance remained difficult with most of the available lines of credit having too short repayment periods and prohibitively high interest rates for long-term property development projects. Inflation declined from 2.51% in January 2013 to close the year at 0.33%. The decline in annual inflation has been associated with subdued demand for goods and services, affecting pricing structures across all sectors of the economy. The liquidity constraints negatively affected rental revenue growth and collection, resulting in the continued rise in rental arrears and voids. Your company has therefore had to increase the provision for doubtful debtors to US$1.156 million from US$556,000 in 2012. Associated with the failure to pay for occupied space was a significant increase in portfolio voids due to tenant business failures. The void rate rose from 10.92% in December 2012 to 14% in December 2013. Despite this difficult operating environment, your company posted an operating profit of US$1.96 million for the year ended 31 December 2013. Investment property performance Rental 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 yielded a 2013 average collection rate of 92% against 93% in 2012. Your company continues to employ various strategies to ensure an acceptable portfolio performance. There was a noticeable increase in voluntary surrenders of leased space in light of the difficult economic environment. Efforts to manage the Companys portfolio mix with a view to diversify both the type and location of its properties are continuing. In line with this thrust, two hectares of prime land were purchased during the year for US$1.57 million for the future development of an office park. Financial performance Total revenue for the year increased to US$6.67 million compared to US$5.20 million in the prior year, a 28% growth. This performance was despite an environment that saw economic contraction and significant scaling down of operations by many entities. Rental income contributed 56% to total income. Projects income for the year amounted to US$2.76 million, up from US$1.31 million in 2012, a 110% growth. Clearly, projects execution has to-date been your companys distinct competitive advantage in line with the strategic thrust adopted after the introduction of the multicurrency system. Total administration costs went up by 11% during the year under review compared to the same period last year, demonstrating rigorous cost management measures that were put in place. Other operating expenses, which include the cost of stands sold, went up by 113% as more stands were sold in 2013 compared to the previous year. As a result, your company recorded an operating profit of US$1.96 million. Projects update Zimre Park Masvingo Residential stands in the project continue to sell, though at a slower pace. The development has established itself as the prime residential destination in 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 million having been generated. Based on land area, 46% of the project has been

All major servicing and installation of infrastructure have been completed. The Compliance Certificate for the greater part of the project has been issued by Harare City Council and several houses are at various stages of construction. Title deeds to the stands shall be issued as soon as the full Compliance Certificate is received. Dividend The Board has recommended a final dividend of US$0.024 (2012: US$0.023) cents per share payable on or about 7 May 2014 to shareholders registered in the books of the Company as at 25 April 2014. The transfer books and register of members will be closed from 26 April to 28 April 2014, all days inclusive. Outlook The economic environment remains extremely challenging. Property rentals are likely to remain subdued and continued focus on projects will enhance the performance of your company. Appreciation I wish to thank all shareholders, stakeholders, management and staff for the support and hard work during the period under review and lastly my fellow Board members for their support and wise counsel.

(443,762) (2,158,096) (9,792) 258,761 31,155 (2,321,734)

(131,649) (802,877) (163,865) 212,821 150 19,988 220,000 (645,432)

2,152,106 (1,032,969) (394,833) (145,719) 578,585 8,211 93,534 101,745

208,000 (700,220) (326,250) (818,470) (284,954) 378,488 93,534

BD Mothobi Chairman 10 March 2014

AUDITORS STATEMENT
The financial results for Zimre Property Investments Limited should be read in conjunction with the complete set of financial statements for the year ended 31 December 2013, which have been audited by BDO Zimbabwe Chartered Accountants and an unmodified audit opinion issued thereon. The auditors report on the financial statements is available for inspection at the Companys registered office.

NOTES TO THE ABRIDGED FINANCIAL STATEMENTS (continued)

4 Statement of compliance The abridged financial statements for the year ended 31 December 2013 have been prepared in accordance with International Financial Reporting Standards (IFRS). 2013 US$ 2012 US$

DIRECTORS RESPONSIBILITY STATEMENT

The Directors are required by the Companies Act (Chapter 24:03) to maintain adequate accounting records and are responsible for the content and integrity of the Companys abridged financial statements and related financial information included in this report. It is their responsibility to ensure that the Companys abridged financial statements fairly present the state of affairs of the Company as at the end of the financial year and the results of its operations and cash flows for the year then ended in conformity with International Financial Reporting Standards.

ABRIDGED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | for the year ended 31 December 2013
Revenue Finance income Other income Administration expenses Other operating expenses Share of loss of associate Operating profit Fair value adjustments - investment property - held for trading investments Profit before tax Income tax expense Profit after tax Other comprehensive income Fair value adjustment on available for sale financial asset Tax relating to other comprehensive income Other comprehensive income for the year, net of tax Total comprehensive income Earnings per share (EPS) Number of shares in issue Basic EPS (cents) Dilluted EPS (cents) Headline EPS (cents) 8 1,716,666,666 1,716,666,666 0.11 0.38 0.11 0.38 0.09 0.09 Audited 2013 US$ 6,670,973 258,761 48,789 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 Audited 2012 US$ 5,199,475 212,821 19,459 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

5 Investment property Opening balance 48,162,006 42,839,500 Additions 2,158,096 802,877 Transfer from inventory 186,816 Disposal (220,000) Transfer to property, vehicles and equipment (326,584) Fair value adjustment 304,789 5,066,213 50,811,707 48,162,006 Investment properties were last valued on 31 December 2013 on an open market basis by Knight Frank who are professional and independent property valuers. The Investment properties namely Old Shell House, Nicoz House and Wetherby House were pledged as security as security for a loan from ZB Bank. 6 Inventories 4,163,505 3,908,779 Developed stands 1,314,287 Land under development 10,590 9,392 Office consumables 4,174,095 5,232,458 The inventories mainly consist of residential stands intended for sale. The stands are located in Masvingo, Bulawayo and Harare. The market value of developed stands is $6,422,197 (2012:$8,546,100). 7 Short-term loan ZB Bank 1,308,168 189,030

Note

ABRIDGED STATEMENT OF FINANCIAL POSITION | as at 31 December 2013

Audited 2013 ASSETS US$ Note Non current assets Property, vehicles and equipment 773,232 5 Investment property 50,811,707 51,584,939 Current assets Inventories 4,174,095 6 Trade and other receivables 1,893,562 Related party receivables 211,397 Held for trading investments 139,899 Cash and cash equivalents 101,745 6,520,698 Total assets EQUITY AND LIABILITIES Capital and reserves Share capital Share premium Treasury shares Retained earnings Non current liabilities Deferred tax Current liabilities Trade and other payables Short-term loan Corporate tax payable Total liabilities Total equity and liabilities 1,716,667 37,209,876 (195,719) 15,091,309 53,822,133 2,187,016 712,304 1,308,168 76,016 2,096,488 4,283,504 58,105,637 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 58,105,637 Audited 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

The loan is a 90-day renewable Bankers Acceptance (BA) whose next maturity is 31 March 2014. The loan was obtained to fund the purchase of commercial land in Harare. A $2 million facility was established for that purpose against which a single draw-down of $1.3 million was made. The loan is at an interest rate of 20% per annum. The loan is secured by first mortgage bonds over three properties namely Old Shell House, Nicoz House and Whetherby House which are in Harare. Earnings per share Profit from continuing operations attributable to the parent company

1,812,401

6,460,354

Number of shares used in calculating earnings per share Shares in issue 1,716,666,666 Weighted average number of shares in issue 1,716,666,666

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

NOTES TO THE ABRIDGED FINANCIAL STATEMENTS

for the year ended 31 December 2013
1 2 Accounting policies The principal accounting policies adopted in the preparation of these abridged financial statements have been consistently applied to all the years presented. Basis of presentation The abridged financial statements are prepared on the historical cost basis except for investment property and held for trading investments which are shown at fair value.

Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to ordinary equity holders of the parent company by the weighted average number 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 by the weighted average number of ordinary shares in issue during the year. Headline earnings is calculated as follows: Profit for the year attributable to ordinary equity holders of the parent (Profit)/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 Significant transactions Additions to investment property Fair value gain on investment property Property development costs capitalised to inventories Rent income earned Income from sale of stands

3 Currency The abridged financial statements are expressed in United States dollars which is both the functional and presentation currency.

9 9.1 9.2 9.3 9.4 9.5 10

1,812,401 (30,979) 27,609 (304,789) 1,504,242 2,158,096 304,789 2,067,033 3,873,028 2,755,926

6,460,354 3,814 91,553 40,006 (5,066,213) 1,529,514 802,877 5,066,213 1,734,746 3,810,938 1,311,754

ABRIDGED STATEMENT OF CHANGES IN EQUITY | for the year ended 31 December 2013
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 Share Capital $ 1,716,667 1,716,667 1,716,667 Share Premium $ 37,209,876 37,209,876 37,209,876 Treasury Shares (195,719) (195,719) Retained Earnings $ 7,539,637 6,460,354 (326,250) 13,673,741 1,812,401 (394,833) 15,091,309 Total $ 46,466,180 6,460,354 (326,250) 52,600,284 1,812,401 (195,719) (394,833) 53,822,133

6th Floor, Fidelity Life Tower, 5 Raleigh Street, Harare Tel: 04 777139/207/157 / 748892 www.zimreproperties.co.zw

Turning Your Dreams Into Realty

Property Investment Property Management Property Development Property Valuations Estate Agency

Cyclicality of operations A significant portion of the Companys revenue is derived from rentals and sale of residential stands. Due to the nature of the Companys income, there is no defined pattern of cyclicality or seasonality of operations and profitability. Supplementary information Depreciation charge Capital commitments Approved but not contracted Contracted 131,606 745,797 2,601,858 3,347,655 83,056 5,285,001 850,134 6,135,135

11 11.1 11.2 12

Capital commitments will be funded from a combination of internal and external resources. 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 been accrued in these financial statements.

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