Eagle Real Estate Investment Trust (REIT) says it spent most of its cash on construction in the first half of 2026, with its Victoria Falls apartments running ahead of schedule.
Cash and equivalents fell to US$1.37 million at 30 June from US$3.95 million at the end of December 2025.
Operating activities used US$4.88 million, largely to fund apartment construction.
Additions to investment property took another US$2.20 million.
Convertible debentures raised US$2.73 million and unit holders contributed US$1.68 million, which covered much of the gap.
Contractors started on three blocks of 29 short-stay apartments at Eagle Heights in February.
The project reached 43 percent completion by 30 June against a 40 percent target.
The first block is due in December 2026 and the other two to follow in 2027.
Hospital construction began in May and stood at eight by the end of June. The hospital is scheduled to open on 31 August 2027.
Design and tender adjudication for a Novotel on the site are finished, and construction awaits financial close.
Eagle Asset Management managing director Bevin Ngara signed the asset manager’s report.
It explains how the Trust will pace the work. “Our approach remains to sequence development expenditure against available capital rather than progress all components of Eagle Heights at the same pace,” he wrote.
Development inventory rose from US$1.81 million to US$9.06 million. Apartment work in progress accounts for US$6.23 million of that. Management has not ruled out keeping one or more blocks for rental income instead of selling them.
At Mazowe Mall, the Trust had contracted about 94 percent of lettable space by 30 June, and about 74 percent was operating.
SPAR and Simbisa Brands opened at the start of the year.
The report attributes the gap mainly to tenant fit-outs and regulatory approvals. “We are targeting full occupancy by 31 December 2026,” Ngara wrote.
Debt funds part of the build.
The eighty convertible debentures stand at US$9.02 million in total.
An FBC Crown Bank loan of roughly US$1.95 million carries 15 percent interest, with principal payments starting in 2027. Money market financing of US$1.26 million costs 8% to 12%. The Trust is adding the interest on the bank loan and money market financing to construction costs.
Total assets grew 15.2 percent to US$45.4 million. The Trust declared no interim dividend and described itself as being in capital formation, with net property income building slowly.
“Capital raising remains central to delivery of the development programme,” Ngara wrote.