REIZ | Statement of Group results for the year ended 31 December 2016
In compliance with the requirements of the Securities (Registration of Securities) Rules, 1993 and the listing rules of the Lusaka Securities 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 31 December 2016. These results are derived from the Group’s audited financial statements which were approved by the Directors at a Board Meeting held on 28 February 2017.
- The Group recorded 32% growth in rental income in 2016.
- Profit from operations increased by 66%. The growth in profit from operations is attributed to increase in rental income and cost containment measures implemented during the year. Property expenses reduced by 35% while administrative expenses were mainly flat, increasing by only 2% which shows great traction on cost containment.
- Headline earnings per share (Headline EPS) increased to K1.00 per share in 2016 from K0.61 per share in 2015.
- The value of the investment property portfolio decreased due to the appreciation of the Kwacha against the US Dollar by the end of the year from K10.99/$ at 31 December 2015 to K9.87 at 31 December 2016. In US Dollar terms, the value of the investment property portfolio increased by 2.4%. Investment properties are valued at each reporting date by an external independent property valuer who holds recognised and relevant professional qualification and has recent experience in the location and category of the investment properties valued.
- The strong operating results were negatively impacted by a decrease of K61.6 million in fair value of the investment property portfolio described above resulting into the Group posting a loss after tax of K20.7 million.
- The Group incurred an extraordinary cost of K2 million in the handling of regulatory obligations in the unsolicited Offer received from Tradehold API Limited to acquire a controlling interest in the equity of REIZ. Shareholders at the extraordinary general meeting (EGM) held on 14 April 2016 did not approve the resolution to allow directors to issue shares to Tradehold API Limited in terms of the Offer, through a poll vote of 7% for and 93% against the Offer.
The Directors propose a final dividend of K0.13/share leading to a total dividend for the year of K0.23/share (2015 – K0.17/share) following an interim dividend of K0.10 per share that was paid during the year (2015 – K0.08/share).
BY ORDER OF THE BOARD
Sydney E Popota
Chief Executive Officer
10 March 2016
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Real Estate Investments Zambia PLC (REIZ.zm)Share price: 1.10 Kwacha (0.00 | 0.00% – 02/06/23)
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