- Real Estate Investments Zambia PLC (REIZ.zm) reported a loss after tax of ZMW 2.8 million for the first six months in 2023 compared to a loss of ZMW 9.4 million for the same period in the previous year.
- These losses occurred due to the fair value loss on investment properties, however excluding this loss and the exchange gain, the Group and Company would have reported a profit of ZMW 7.3 million.
- Revenue for the Group and Company increased by 18% to ZMW 34.2 million, mainly due to efficient tenant management.
- The company’s equity increased from ZMW 447.5 million to ZMW 678.4 million as a result of a successful rights issue.
Fair Value of Investment Property Portfolio
- The fair value of the Group’s investment property portfolio increased from ZMW 756 million to ZMW 819 million mainly due to the depreciation of the Zambian Kwacha against the United States Dollar.
- Valuation of the investment properties is performed twice a year, once in June and once in December.
- There was a decrease in net cash generated from operating activities from ZMW 21.1 million in the previous year to ZMW 7.0 million in 2023 due to unsettled creditor obligations from prior years.
- However, the Group did experience an increase in cash and cash equivalents during the period from ZMW 1.8 million to ZMW 3.9 million.
- The company contracted Napoli Properties Limited to manage its property portfolio and plans to refurbish shopping malls, which is expected to increase revenues significantly.
- The Board of Directors and Management started the process of converting the company into a Real Estate Investment Trust (REIT) which is expected to provide tax incentives and guaranteed distributions to shareholders in the future.
About Real Estate Investments Zambia PLC (REIZ.zm)
Real Estate Investments Zambia PLC (REIZ), listed on the Lusaka Securities Exchange (LuSE), is the leading real estate investment, development and management company in Zambia. Originally the North Western Rhodesia Farmers Co-operative in the 1920’s, secured the current location of Central Park on Cairo Road as a collection centre for farming produce. The Co-op went through various guises until after independence in 1964 when it was renamed the Zambian Farmers Co-operative. The construction of the Farmers House building was completed in the 1970’s, hence the name by which that property became known.
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