REIZ | GROUP RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015

By Published On: March 11th, 2016Categories: Corporate announcement

In compliance with the requirements of the Securities (Registration of Securities) Rules, 1993 and the listing rules of the Lusaka Stock Exchange, Real Estate Investments Zambia PLC (REIZ) announces the results of the Company and its subsidiaries (collectively referred to as the Group) for the year ended 31st December 2015. These results are derived from the Group’s audited financial statements which were approved by the Directors at a Board Meeting held on 1st March 2016.

GROUP PERFORMANCE

  • The Group recorded a significant increase in gross rental income of 38% in 2015.
  • Profit from operations has increased by 48%.
  • During the year, the Group sold its shares in Burnet Investments Limited. The profit on sale of these shares is included in other operating income. Property Transfer Tax was paid to Zambia Revenue Authority on this sale.
  • Due to the devaluation of Kwacha from K6.40 at 31st December 2014 to K10.99 at 31st December 2015, and increase in rental rates, the Group had significant increase in the fair value of Investment property. Investment properties are valued by external independent property valuers who possess appropriate recognised professional qualifications and have requisite experience in the location and category of the properties valued. The other effect of Kwacha depreciation is an exchange loss of K26.1 million incurred on revaluation of US Dollar denominated debt. This loss is included in the net finance cost of K37.6 million.
  • Profit after tax has therefore increased substantially to K453.0m from K42.6m in 2014.
  • Earnings per share (EPS) rose from K0.75/share in 2014 to K8.02/share in 2015.
  • Headline EPS has increased from K0.41 in 2014 to K0.61 per share in 2015.
  • Net asset value increased from K7.72 in 2014 to K15.17 in 2015.

BY ORDER OF THE BOARD
Sydney E. Popota
Company Secretary

Lusaka – 10 March 2016


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Real Estate Investments Zambia PLC (REIZ.zm)

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