LESS than three months after listing, the Pfuma Real Estate Investment Trust (REIT) declared a maiden dividend of US$446719, signalling early returns for investors and strong underlying rental income performance.
The payout underscores the growing traction of real estate investment trusts on the Victoria Falls Stock Exchange (VFEX), as investors increasingly turn to property-backed securities for stable, inflation-hedged income amid limited investment options on Zimbabwe’s capital markets.
The REIT was listed on the VFEX on February 6, becoming the second such security on the US dollar-only bourse after the Eagle REIT.
The dividend covers the trading period from February 6 to March 31.
Pfuma REIT was launched by Arctic Blue Asset Management with an estimated initial asset value of US$23,74 million. Its net asset value (NAV) is projected to grow to US$46,73 million.
The REIT’s property portfolio includes Hogerty Hill Centre and Chegutu Retail Centre, with Cork Corner added upon listing.
“Pfuma Fund Real Estate Investment Trust, which is listed on the Victoria Falls Stock Exchange, has declared an interim dividend for the period ended March 31, 2026, of US$446 719, translating to 0,0948 US cents per unit,” Arctic said in a trading update for the period February 6 to March 31, 2026.
“The dividend is made in accordance with Pfuma’s distribution policy, which requires the fund to distribute not less than 80% of net distributable income to unitholders. The fund has resolved to distribute 95% of net distributable income for the period ended March 31, 2026.”
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Arctic said the fund delivered a stable inaugural performance.
“Revenue was anchored by the two seed assets — Hogerty Hill Centre and Chegutu Retail Centre — as well as investment income,” the asset manager said.
“The fund expects to complete the acquisition of the Cork Road Quick Service and Casual Dining Centre in the second quarter of 2026. Development works remain on track for the fund to complete its four pipeline projects during the course of 2026.”
The NAV was subsequently recorded at US$46,87 million at the end of the review period, with net property income amounting to US$316 582.
“The Zimbabwean property market remains resilient, functioning as an effective inflation hedge and store of value, supported by sustained urbanisation and diaspora demand,” Arctic said.
“Peri-urban and emerging suburban nodes are expected to outperform traditional central business district locations.”
Brokerage IH Securities said in March that the two seeded properties, with a combined gross lettable area of 16 107 square metres, are already generating cash flow.
Hogerty Hill is a 2,85-hectare retail centre valued at US$18,6 million, while the 1,81-hectare Chegutu Retail Centre is valued at US$3,5 million.
Chegutu Retail Centre is fully occupied, while Hogerty Hill has a 70% occupancy rate, with expectations that it would reach full occupancy in the quarter just ended.
Meanwhile, Cork Corner is valued at US$6,94 million.
“Yields are favourable, with the current properties generating yields of 6,6% and 10% for Hogerty Hill and Chegutu, respectively, while Cork Corner has a yield of 7,8%, leading to an overall yield of about 7%. This, together with the quality of tenants, lowers risk and offers investors a steady income stream,” IH Securities said.
“The fund also has a pipeline of properties in the works, with the selected projects located in high-traffic zones, in line with its strategy to target growth corridors and connecting nodes, particularly outside Harare.
“The property pipeline includes Project Eastlea, Project Yellowstone in Kwekwe, Project Chivhu and Project Silverbrook in Ruwa. These projects have elevated target yields of up to 12,4%, raising the overall yield profile of the fund to 8,5% by 2029.”
