In accordance with the Lusaka Securities Exchange Limited (“LuSE”) Listings Requirements, the Board of Directors advises the Shareholders of Real Estate Investments Zambia PLC (“the Company”) that for the half-year ended 30 June 2019, the basic earnings per share is expected to be 186% lower than the basic earnings per share for the half-year ended 30 June 2018.

The movement in earnings is primarily attributed to:

  • unrealized exchange losses amounting to ZMW 15.4 million on revaluation of foreign currency-denominated liabilities due to depreciation of the ZMW against the USD, compared to an exchange gain of ZMW1.9 million recorded in 2018.
  • higher finance costs following full drawdown of loan facilities that funded the Arcades shopping mall redevelopment and refurbishment of cinemas,
  • a reduction in fair value of the investment property portfolio by ZMW 1.7 million driven by falling market rental rates during the period compared to a revaluation gain of ZMW 1.9 million for the same period in 2018.

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 half-year ended 30 June 2019 to be released on SENS and published in the local press on or about 12 September 2019. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s Securities until publication of the results.

Issued in Lusaka, Zambia on 11 September 2019

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Issued in Lusaka, Zambia on 11 September 2019