I.H Securities rates Pfuma Fund REIT a hold on growth pipeline

A hold rating just landed on Zimbabwe's freshest REIT, but the real story is a pipeline that could flip its entire value proposition within a few years.

Pfuma Fund REIT gets its first call

• I.H Securities slapped a hold on Pfuma Fund REIT with a buy-on-dips angle.
• Pfuma's current price basically mirrors the existing portfolio's worth.
• Medium-term upside hinges on new developments boosting NAV.
• IH described it as a stability-plus-growth hybrid play.

Listing and early market performance

• Pfuma Fund REIT hit the Victoria Falls Stock Exchange on February 6.
• Arctic Blue Asset Management is behind the launch.
• Initial fundraising pulled in US$25 million at full subscription.
• Market cap climbed to US$74.14 million by Monday.

Expansion pipeline looks ambitious

• Cork Corner in Avondale headlines the growth slate.
• Greenfield projects span Eastlea, Chivhu, Kwekwe, and Ruwa.
• Roughly 18,000 square metres of lettable space gets added.
• Gross lettable area should jump past 35,000 square metres by late 2026.

Yield trajectory and NAV projections

• Seeded assets like Hogerty Hill Centre sit at around 6.6% yield.
• Targeted returns at Silverbrook and Chivhu top 12%.
• Blended portfolio yield is projected to reach roughly 8.5% by 2029.
• NAV could climb from US$46.73 million to US$53.93 million post-construction.

Anchor tenants keeping income stable

• Hogerty Hill Centre and Chegutu Retail Centre were the seed properties.
• TM Pick n Pay and Simbisa outlets anchor those locations.
• Rental income stays dollar-denominated for inflation protection.