REIZ records over K10m exchange losses

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CONTINUED depreciation of the Kwacha has resulted in the Real Estate Investments Zambia (REIZ) Plc recording exchange losses of over K10 million in the first half of 2015.

 

However, the Lusaka Stock Exchange-listed company and formerly known as Farmers House has posted a rise in revenue due to increased rental incomes.
In its financial results for the six months ending June 30, 2015, the REIZ witnessed a loss of K10.17 million in the first half of 2015, up by over K3.4 million compared to K6.74 million in the same period last year.
“With the depreciation of Kwacha during the first half of the year from K6.40 per US dollar at December 31, 2014 to K7.49 per US dollar as at June 30, 2015, which is an overall devaluation of 17 percent, the company has incurred exchange losses of K10.17 million compared to K6.74 million in 2014,” it stated.

 

The report indicates that revenue from rental increased to K24.20 million from K18.85 million for the period under review with profit before other income, finance cost and tax climbing to K14.72 million compared to K10.69 million.
Under tax revenue, the company contributed K7.27 million compared to K1.97 million in 2014 after a pre-profit tax of K41.37 million compared to K20.24 million respectively.

 

During the period under review, the company disposed of its 49 percent stake in Burnet Investments Limited with proceeds to be employed in the development of investment property.

 

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