- Basic earnings per share anticipated to soar by 183%
- Growth attributed to the impact on the ZMW-equivalent of property values of a depreciation of the ZMW against the USD.
Harare – Real Estates Investments Zambia (REIZ), the only listed real estate company on the Lusaka Stock Exchange (LUSE) remains bullish despite the impact of the COVID-19 pandemic and the already existing hostile operating environment by expecting a surge in profit for the six months period to 30 June 2020.
In an earnings guidance publication, the group said basic earnings per share for the half year period ended 30 June 2020 is expected to be 183% higher than the basic earnings per share for the half year period ended 30 June 2019.
REIZ said the movement in earnings is primarily attributed to a ZMW114.8 million gain in the fair value of the group’s investment property portfolio driven mainly by the impact on the ZMW-equivalent of property values of a depreciation of the ZMW against the USD.
The group added that, “In USD terms, the investment property portfolio’s value declined by $10.9 million. The investment property portfolio is revalued twice a year in USD by independent professional property valuation experts.
“From an operational perspective, the Group’s profit from operating activities decreased by 31.87% from ZMW21.2 million for the half-year in 2019 to ZMW14.4 million for the same period in 2020.”
Formerly known as Farmers House Plc, REIZ PLC is a Zambia-based property developer. The Company is primarily involved in investment, development and restructuring of commercial and non-commercial property for commercial letting. The Company operates in two segments: Retail and Office.
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