THE National Railways of Zimbabwe Pension Fund (NRZPF) Revitus Real Estate Investment Trust (REIT) has declared a maiden dividend of US$45 804 during the quarter ended March 31, 2024.
The Revitus REIT was listed on the Zimbabwe Stock Exchange on December 18, 2023, following an initial public offering (IPO) in which ZWL$48 551 516 400 was raised to spruce up its properties.
The Revitus REIT was launched to raise funding for renovating central business district (CBD) properties such as the Pioneer House in Bulawayo and Chester House in Harare.
In a trading update of the REIT’s quarterly performance for the period ended March 31, 2024, released last Friday, the trust’s fund managers, CBZ Asset Management (Private) Limited, trading as Datvest, said its net asset value stood at US$22,53 million.
“In line with our commitment to pay quarterly distributions, the REIT has declared a maiden interim dividend for the quarter ended 31 March 2024 of US$45 804 (being 0.012 United States cents per unit),” Datvest said.
“Revitus Property Fund remains focused on the vision to revitalise CBD properties and improve the occupancy ratios, rental yields and market values. The pilot project for refurbishment of Chester House (Harare) is at an advanced stage with the conversion from office use to licensed residential accommodation scheduled to commence in Q3 2024.”
The fund manager said preliminary scoping of Pioneer House (Bulawayo) renovations was underway, with commencement of the project expected to result in a temporary revenue shrinkage after tenant evacuations.
“The average occupancy and yield ratios were weakened by evictions of tenants in preparation for renovations and termination of non-performing leases. These should improve as the buildings are revitalised and quality tenants are on-boarded in the short to medium term,” Datvest said.
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“Economic challenges induced by inflationary pressures and exchange rate volatility added pressures on tenants’ ability to meet their obligations, resulting in low collection rates in Q1 2024.”
During the quarter, a profit for the period of US$102 636 was reported with an average occupancy rate of 40%.
“The REIT continues to realise revenues from its existing portfolio of buildings as they await revitalisation,” Datvest said.
“The achieved profit for Q1 was 81% above budget and the growth trend is expected for the rest of the financial year.”
Datvest anticipates economic stability to be driven by the new currency ZiG which is backed by gold and foreign currency.
