Eagle Real Estate Investment Trust, a Development REIT listed on the Victoria Falls Stock Exchange, has reported a 15.2% growth in total assets to US$45.4 million for the half-year ended 30 June 2026, up from US$39.5 million at 31 December 2025, as capital deployment into its development pipeline gathered pace.
Net Asset Value increased 12.5% to US$33.9 million from US$30.2 million, while profit after tax was US$935,838, compared to US$971,306 in the prior comparable period.
The results reflect the Fund’s current stage as a Development REIT, with capital being raised and deployed into developments while completed assets progressively begin to contribute recurring income. The Asset Manager managed the Trust in accordance with the Collective Investments Schemes Act and the Eagle REIT Trust Deed.
The operating environment remained relatively stable in the first half of 2026. Zimbabwe’s economy is expected to grow by 5% in 2026, while annual ZWG inflation declined to 4.7% in June and the Reserve Bank of Zimbabwe reduced the Bank Policy Rate from 35% to 30%. Greater currency and price stability is improving planning and execution for a development programme whose revenues, costs and funding are predominantly USD-based.
The property market continued to attract institutional and private capital, particularly into residential, retail, healthcare and hospitality – the sectors where Eagle REIT is deliberately positioned. The strategy is to raise and deploy capital into developments in selected growth nodes, complete and de-risk those developments, and progressively build a portfolio of income-producing real estate.
Operationally, Mazowe Mall transitioned into operations during the period. Approximately 94% of lettable space had been contracted at 30 June 2026, with approximately 74% operational. Anchor tenants SPAR and Simbisa Brands commenced operations at the beginning of the year and rental income is beginning to build as the centre moves towards full operations. The gap between signed and operational space largely relates to tenant fit-outs and regulatory approvals. The immediate focus is to bring remaining contracted tenants into operation and close residual vacancies, with full occupancy targeted by 31 December 2026. Mazowe Mall is significant as it demonstrates the development REIT cycle from development to leasing, operationalisation and ultimately recurring income.
At Eagle Heights in Victoria Falls, development activity accelerated. Construction of the short-stay apartments commenced in February 2026 and reached 43% completion by 30 June, ahead of the 40% target. Three blocks of 29 apartments each are under construction, with the first block targeted for completion in December 2026 and the remaining blocks scheduled for 2027. Hospital construction commenced in May 2026 and had reached 8% completion by end of June, with opening to the public scheduled for 31 August 2027. Design development and tender adjudication for Novotel Victoria Falls were completed during the period, with construction targeted to commence in 2027 following financial close. The approach remains to sequence development expenditure against available capital rather than progress all components at the same pace.
Financially, the most significant asset movement was in development inventory, which increased from US$1.8 million to US$9.1 million, largely reflecting capital deployed into the short-stay apartments at Eagle Heights. Revenue for the six months was US$921,191, comprising US$821,607 from the sale of residential villa stands and US$99,584 in rental income. Gross profit was US$502,924 compared with a gross loss of US$8,423 in the comparative period. The Fund recorded a fair value gain of US$775,701 on investment property.
Mazowe Mall is still moving towards steady-state operations and its rental contribution should be considered in that context. Management expects recurring income to increase as remaining tenants commence operations and turnover-based rentals begin contributing.
Cash deployment was mainly directed towards development activity. Cash and cash equivalents declined to US$1.37 million from US$3.95 million at year-end, while cash outflows from operations were US$4.88 million and from investing activities US$2.24 million. Financing inflows of US$4.33 million were supported by US$1.68 million from unitholders’ funds and US$2.73 million from convertible debentures issued. Long-term liabilities increased to US$8.9 million from US$6.77 million, comprising convertible debentures of US$6.95 million and loan borrowings of US$1.95 million.
For the remainder of 2026, priorities remain clear: achieving full occupancy at Mazowe Mall, completing the first apartment block at Eagle Heights by December 2026, and continuing construction of the remaining blocks and hospital into 2027. Capital raising remains central to delivery of the programme, with the pace of development matched to available capital.
The Fund is still in the capital formation stage, with net property income slowly building up. The Fund has resolved not to declare an interim dividend.
