Zimbabwe’s newest real estate investment trust (REIT) – Pfuma Fund – has reported a stable start to operations following its recent listing on the Victoria Falls Stock Exchange (VFEX), with the vehicle declaring an interim dividend of US$446 719.
In its first trading update covering the period from 6 February to 31 March 2026, the fund said the performance, underpinned by resilient property market fundamentals and a relatively stable macroeconomic environment, was anchored by income from its initial assets, alongside early-stage investment inflows.
The update comes just weeks after Pfuma debuted on the VFEX, raising US$25 million through a private placement, a move that signalled growing investor appetite for structured real estate exposure in Zimbabwe, particularly in hard currency-denominated instruments.
Management noted that Zimbabwe’s economic environment in the first quarter remained “broadly stable,” supported by tight monetary policy that has helped contain inflation and stabilise the exchange rate.
Growth projections from international lenders, including the African Development Bank and the International Monetary Fund, place Zimbabwe’s 2026 GDP expansion between 4.5 percent and 5 percent.
This outlook, driven by recovery in agriculture, mining and construction, continues to support demand for property assets.
However, the fund cautioned that global risks, particularly geopolitical tensions in the Middle East, could keep driving fuel costs up and exert pressure on operating expenses.
Against this backdrop, Pfuma emphasised the enduring appeal of real estate.
“These dynamics continue to favour real estate as an inflation hedge and a store of capital, particularly for well-located income-producing assets,” the fund said.
The REIT’s initial portfolio comprises two seed assets, Hogerty Hill Centre and a Chegutu property, both contributing the bulk of rental income during the period.
Looking ahead, the fund expects to complete the acquisition of the Cork Road Quick Service and Casual Dining Centre in the second quarter, while development of four pipeline projects is scheduled for completion within 2026.
This expansion strategy aligns with broader market trends, where peri-urban and emerging suburban nodes are increasingly outperforming traditional central business districts, supported by urbanisation and diaspora-driven demand.
Pfuma reported a net asset value of US$46,9 million and net property income of US$316 582 for the inaugural period. Total distributable income stood at US$470 230, with 471,3 million units in issue.
In line with its distribution policy, the fund declared an interim dividend of US$446 719, equivalent to 95 percent of distributable income, translating to 0.0948 US cents per unit.
The payout underscores the REIT model’s appeal to income-focused investors, particularly in a market where yield stability and currency preservation remain key considerations. – TML