Interim Results - 2012

Statement of results for Real Estate Investments Zambia PLC and its subsidiaries (“the Group”) for the six months ended

30th September 2012

K’ Million

6 months to

30.09.2012

K’ Million

Year to

31.03.2012

K’ Million

6 months to

30.09.2011

Unaudited Audited Unaudited

Turnover 22,021 26,847 10,599

Operating Profit before Finance Income /(Expense) 14,693 15,312 5,898

Fair value adjustment of investment properties – IAS 40 0 47,212 0

Interest on long term loans (6,786) (5,635) (2,345)

Other Finance Income /(Expense) 3,968 (3,035) 106

Profit /(loss) from equity accounted investee 1,658 5,299 (568)

Profit before Taxation (attributable to shareholders) 13,533 59,153 3,091

Taxation (2,529) (16,635) (864)

Profit after tax 11,004 42,518 2,227

Dividend on Ordinary shares (Kwacha per share)

- Interim

- Final

0

50

50

50

Headline Earnings per share (on Operating Profit): 260.24 348.71 137.98

Earnings per share before tax: 239.69 1,347.12 72.31

Earnings per share after tax: 194.90 968.28 52.10

Weighted average number of ordinary shares

56,460,198

43,910,687

42,745,912

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 announces the results of the Group for the six months ended 30th September 2012. These interim results are derived from the Group’s management accounts,

which have been approved by the Directors, but have not been audited.

Current & Future Group Performance

The Directors are pleased to report that the Group’s financial performance remains strong. With a year on year increase in 6 monthly turnover of 108%, operating profit has

increased to K14,693 million for the first half of the year from K5,898 million in 2011. This represents a 149% increase in operating profit. This improvement in year on year

profit is principally the result of rental income arising following the acquisition of Arcades Development PLC in March 2012. The results show a 5-fold increase in profit after

tax to K11.004 billion from K2.227 billion in 2011and reflect six months income from Arcades, which will continue to accrue in the second period of the year.

The Directors bring to the attention of shareholders the introduction of Statutory Instrument No. 33 – The Bank of Zambia (Currency) Regulation Number 33 of 2012 - on 18th

May 2012 and its impact on the business operations of the Group. Shareholders will be aware that Statutory Instrument Number 33 creates a currency mismatch between the

Group’s income (now denominated in Kwacha) and the Group’s debt which is predominantly denominated in United States Dollars. The Directors have been actively assessing

the effect on the Group of the impact of these new regulations and has engaged corporate advisers to prepare appropriate measures to mitigate and overcome this mismatch.

Shareholders will be apprised of the outcome of these deliberations in the early part of 2013, or where possible earlier.

Corporate Action – Change in Year End

Shareholders will also be aware that the Government of the Republic of Zambia (GRZ) through the Bank of Zambia is rebasing the currency as at 1st January 2013. On this day

the last three zeroes of the current currency will be permanently removed, which will be the same as dividing the current currency (the ZMK) by a factor of 1,000 to arrive at

the new currency amount (the ZMW). In order to avoid the complications of accounting for a nine month period in ZMK, and a three month period in ZMW, the Directors

have unanimously approved a resolution to change the year end of Real Estate Investments Zambia PLC from 31st March to 31st December. Resolutions for a similar change of

year end have also been approved by all Group companies. Therefore, the year end of all Group companies for the current period will be 31st December 2012 and the final

audited results will be for the nine month period ended on that date. The Directors also wish to point out that GRZ has amended the (fiscal) tax year end to 31st December. The

amendment of the year end by the Group will result in a co-determinant year end for accounting as well as tax year ends.

Interim Dividend

As a result of the amendment of the year end on account of the currency rebasing, and due to the impact on the operations of the Group of the introduction of SI 33, the

Directors have resolved that the Group defers the declaration of an interim dividend. The Directors will review the results for the nine month “year” and will recommend a

final dividend that will take into account the undeclared interim dividend on those results for approval by shareholders at the Annual General Meeting (AGM) that will be held

on 27th March 2013 for the amended year end. Shareholders will be alerted of the AGM agenda in due course.

In view of the foregoing, the Directors, therefore, wish to announce that no interim dividend for the nine month period ending 31st December 2012 has been declared payable to

ordinary shareholders as at the date of this notice to the public.

BY ORDER OF THE BOARD

T. T. Mushibwe R.P.S. Miller

Chairman Managing Director

Lusaka 19th November 2012