Preliminary Group Results - 2011/2012

Preliminary Statement of results for the year ended 31st March 2012

In compliance with the requirements of the Securities (Registration of Securities) Rules, 1993 and the listing rules of the Lusaka Stock Exchange, Real Estate Investments Zambia PLC (REIZ) announces the preliminary results of the Company and its subsidiaries (collectively referred to as the Group) for the year ended 31st

March 2012. These results are derived from the Group’s financial statements which were reviewed by the Group’s Audit Committee in the presence of the external auditors KPMG at a meeting held on 10th May 2012. KPMG confirmed that the audit was substantially complete. The results will therefore be presented for approval by the Directors at a Board meeting to be held on 22nd May 2012, following recommendation of the same by the Audit Committee of the Board.

Group results for the year ended 31 March 2012 2011K million K million

STATEMENT OF COMPREHENSIVE INCOME

Gross rental income 26,847 22,443Property operating expenditure (6,347) (4,372)Net Rental Income 20,500 18,071

Change in fair value of Investment property, net of exchange gains 5,790 14,696Other operating income 21 -Administrative expenses (5,209) (5,100)Net Finance income/(cost) 32,752 (9,036)Profit/(loss) from equity accounted investees 5,299 323Profit before tax 59,153 18,954Income tax (expense)/credit (16,635) (5,433)Profit after tax 42,518 13,521

STATEMENT OF FINANCIAL POSITION

Plant and equipment 6,596 4,787Rental Income Receivable 9,305 3,985Investment properties 415,587 255,494Investment property under development 41,480 596Investment in Equity Accounted Investee 6,735 1,449Amount due from equity accounted investee 11,438 5,909Goodwill 32,901 2,703Current assets 11,853 27,479Total Assets 535,895 302,402

Shareholders' funds and liabilitiesTotal equity 252,965 167,943Non – current liabilities 151,847 58,351Deferred taxation 116,396 70,623Total current liabilities 14,687 5,485Total equity and liabilities 535,895 302,402

Annual General Meeting (AGM) – 28th June 2012

The Group announces that the 2012 AGM will be held on 28th June 2012 at the Southern Sun Ridgeway Hotel starting at 10:00 Hrs. At the Board meeting to be held on 22nd May 2012 the Directors will consider the declaration of a final dividend, following the interim dividend of K50 paid to shareholders in January 2012. The notice of the meeting will be published in the press and the Annual Report will be mailed to shareholders at the end of May 2012, and posted on the Group’s web site –www.reiz.co.zm.

BY ORDER OF THE BOARD

T.T. Mushibwe R.P.S. MillerChairman Managing DirectorLusaka 14th May 2012

CURRENT & FUTURE COMPANY PERFORMANCE

The Group is pleased to record a 19.6% increase in income. Through continued control of expenditure, the Group shows an operating profit percentage of 60%. The profit after tax of the Group has dramatically increased by 137%. This is principally a reflection of the acquisition of Arcades Developments PLC (ADP), which transaction was approved by shareholders at anEGM held on 27th January 2012. It should be noted that the results of the group include onlyone month’s income from Arcades, whilst the Group statement of financial position include the consolidation of Arcades as an investment property which in part leads to a 77% increase in the Group’s assets during the year from K302 billion to K536 billion.

NEW PROPERTY ACQUISITIONS & DEVELOPMENTS

As noted above the Group added the ADP properties to its portfolio and are pleased to have also completed the Abacus Square development (1,820m�) welcoming Deloitte & Touche and Konkola Copper Mines PLC as tenants of the property. As at 31st March 2012 the Group has over 60,000m� of property under direct ownership.

The Directors are also pleased to confirm that in joint venture with Standard Bank Properties (Pty) Ltd the Group has a 49% stake in the construction of Stanbic Bank (Z) Ltd’s new Head Office (5,568 m�) on which occupation was taken in October 2011. This property is immediately adjacent to REIZ’s Airtel Complex on Addis Ababa Drive.