In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors advises the Shareholders of REIZ that for the six months ended 30th June 2016, the basic earnings per share are expected to be approximately 8% lower, and the headline earnings per share are expected to be approximately 105% higher than those for the six months ended 30th June 2015.
The movement in net operating earnings leading to higher headline earnings per share in 2016 compared to that of 2015 is primarily attributed to the following:
- Increase in rentals per square meter which was effected in October 2015 and on-going operating cost management. This is in line with the 2016 outlook provided to market at the last annual general meeting.
- Impact of the annual rental escalation averaging 5% year on year.
- Impact of the US Dollar exchange rate which averaged K10.88/$ in 2016 compared to K7.10/$ for the same period in 2015.
The 2015 financial results were impacted by a one off sale of REIZ’s shareholding in the then equity accounted investee, Burnet Investments Limited. This contributed to higher basic earnings per share in 2015 compared to 2016.
Shareholders are advised that the information contained in this trading statement has not been reviewed or reported on by the external auditors of the Company.
The Company expects its results for the six months ended 30th June 2016, to be released on SENS and published in the local press on or about 7 September 2016. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities until publication of the results.
By Order of the Board
Sydney Popota – Company Secretary
Issued in Lusaka, Zambia on 6 September 2016
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Stockbrokers Zambia Limited (SBZ) is a founder member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia
First Issued on 6 September 2016