Reiz Chairman Kenny H. MakalaFuture outlook
The economy is forecast to grow by a modest 3.7% in 2016 due largely to anticipated continued electricity deficits, a slump in global demand for commodities and poor agricultural output as a result of erratic rains. Despite the economic slowdown, your board remains optimistic that REIZ will not just survive the turbulence but is set to improve its performance through maximization of income collection, reduction of operating costs and increase of the group’s property portfolio’s lettable space. In the course of the year under review, the board decided to terminate a contract with a company which had been providing property management services to REIZ for 16 years in order to streamline operational efficiencies. With effect from 1st February 2016, that service has been brought in-house. This move is expected to save the company considerable amounts of money.
With competition particularly in the retail space getting increasingly fierce, the board is determined to not only protect the company’s existing assets by refurbishing them, but also increase its Gross Lettable Area (GLA) by unlocking its land bank to bring on stream new income earning properties while always looking to acquire strategic properties. In order to achieve geographic diversity in its portfolio, the company needs to look for suitable properties outside Lusaka. The impact of the steps alluded to will begin to positively affect the company’s bottom line in 2016 bearing more evident fruit in subsequent years. REIZ intends to build on its competitive strengths as it seeks to enhance its position as a major player in the property development sector.
2015 annual report