Five audited years, explained plainly.
These are the audited results of One Square Kilometre Kalingalinga, the rental business transferred into OSK. OSK itself was incorporated in April 2026 to list, so this record is the building's record. All amounts are in Zambian Kwacha.
Earnings fell less than profit in 2025
The building became more valuable after it was revalued in 2024. Because of this, the annual depreciation charge increased from ZMW 18,758 to ZMW 300,853. Depreciation is a non-cash accounting expense, so while it reduced profit after tax, it did not involve any actual cash leaving the business. This is why profit fell much more than EBITDA.
| Year to 31 December | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 167,470 | 385,596 | 566,619 | 1,289,026 | 1,012,766 |
| Gross profit | 167,470 | 385,596 | 558,890 | 1,265,401 | 985,620 |
| Profit before tax | 120,521 | 345,264 | 517,325 | 1,168,217 | 568,082 |
| Profit after tax | 113,822 | 329,840 | 494,660 | 1,116,656 | 527,571 |
| Net cash from operations | 152,010 | 321,676 | 529,274 | 1,170,715 | 895,194 |
| Total assets | 959,417 | 1,043,653 | 1,133,552 | 16,290,497 | 15,878,380 |
| Total equity | 922,162 | 994,903 | 1,062,137 | 16,167,522 | 15,688,635 |
| Net profit margin | 67.9% | 85.5% | 87.3% | 86.6% | 52.1% |
| Return on equity | 12.3% | 33.1% | 46.6% | 6.9% | 3.4% |
| Revenue growth | 14.5% | 130.2% | 46.9% | 127.5% | −21.4% |
The jump in assets and equity in 2024 is the building being revalued to its fair value. A larger equity base is also why return on equity fell from 46.6% to 6.9%: the profit did not shrink, the base it is measured against grew.
Why 2025 was lower
Revenue fell 21% to ZMW 1,012,766. Occupancy did not fall. Three things happened:
- Rents moved from dollars to Kwacha. Some 2024 leases were priced in US dollars. When the Kwacha strengthened from K27.93 to below K23.00 to the dollar during 2025, those leases were reissued in Kwacha at the lower rate. That reversed ZMW 113,985 of revenue.
- The Bank of Zambia's currency directives. From December 2025, domestic supplies must be settled in Kwacha. All OSK leases have been in Kwacha only since 1 January 2026.
- Higher depreciation. The 2024 revaluation added a full year of depreciation of ZMW 300,853, plus a net foreign-exchange loss of ZMW 6,141.
In February 2026 the Board raised rents by an average of 30%, after consulting tenants. Some tenants left, and every vacant studio was re-let at the new rate.
Cash and dividends
Cash from operations has been higher than profit after tax in every one of the five years. The business has no loans, so there are no interest payments.
Before listing, dividends were set by the cash the business generated, not by accounting profit: ZMW 130,137 in 2021, ZMW 1,131,855 in 2024 and ZMW 1,006,458 in 2025. In 2024 and 2025 they were larger than profit after tax. In 2025 the dividend was also larger than the ZMW 895,194 of cash from operations, and the other ZMW 111,264 came from cash brought forward from 2024. Cash at the end of 2025 was ZMW 115,893.
After listing the policy changes. Until any REIT conversion, the Board intends to pay out about 40% of distributable profits, decided once a year after the audit. It will weigh profit, cash, building plans and the economy. A dividend is never guaranteed.
The Prospectus states that dividends are subject to 15% withholding tax. Ask your tax adviser how this applies to you.
The balance sheet at 31 December 2025
| Total assets | ZMW 15,878,380 |
|---|---|
| Total liabilities | ZMW 189,745 |
| Net asset value | ZMW 15,688,635 |
| Shares in issue | 2,000,000 |
| Net asset value per share | ZMW 7.84 |
| Bank borrowings, shareholder loans, leases | None |
Almost all of the assets are the building, valued by Pam Golding Properties (Zambia). Buildings are depreciated over 40 to 50 years and revalued every third year.
The price in context
| Measure | Figure | Offer price compared |
|---|---|---|
| Offer price | ZMW 12.76 | |
| Net asset value per share, 2025 | ZMW 7.84 | 1.63 times |
| Profit after tax per share, 2025 | ZMW 0.26 | About 48 times |
| Profit after tax per share, 2024 | ZMW 0.56 | About 23 times |
| Directors' intrinsic value per share, end of 2030 | ZMW 14.06 | About 9% below |
You pay more than the book value, and a high price for past earnings, especially 2025's reduced profit. The Directors' case rests on the future: their 8-year earnings method, using 2024 profit and the appreciated value of each building, gives ZMW 14.06 a share at the end of 2030 on 16 million shares.
That figure is a forward-looking estimate, not a forecast of the share price. It depends on seven more buildings being delivered, let and bought at fair prices. If they are not, it will not be reached.
The forecast, and what it assumes
The Prospectus includes a five-year forecast in which revenue reaches ZMW 7,038,082 by 2029, driven mainly by new buildings rather than higher rents. The full tables are in the Prospectus.
Forward-looking statements are not guarantees. Actual results may differ materially. The Company is not obliged to update them except where the law or the LuSE requires.
What the Prospectus tested
- If occupancy falls by 10%, EBITDA falls by about 9%.
- If rent growth is delayed by 12 months, the revenue effect stays within the forecast's tolerance.
- If the building planned for 2027 is six months late, profitability and the long-term path hold.
- Having no interest-bearing debt reduces the downside.