THE Revitus Real Estate Investment Trust (REIT) has declared a US$38 430 dividend for the quarter ended March 31, 2025, which is 16% lower than the comparable period last year, as it seeks to unlock central business district (CBD) value.
In the first quarter ended March 31, 2024, the REIT declared a dividend US$45 804.
The Revitus REIT was listed on December 18, 2023, following an initial public offering wherein ZWL48 551 516 400 was raised.
The Revitus REIT was launched by the National Railways of Zimbabwe Pension Fund (NRZPF) to raise capital for renovating CBD properties such as the Pioneer House in Bulawayo and Chester House in Harare.
NRZPF launched the REIT seeking to raise US$8 million.
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The lower dividend comes despite a higher profit of US$130 892 during the period under review, from a prior year comparative of US$102 636.
Further, the net asset value was up at US$21,03 million during the first quarter, from US$US$20,85 million in the same period last year.
“The REIT remains focused on revitalisation of the seeded CBD office buildings to unlock value and generate sustainable USD earnings,” Revitus said.
“The pilot project for transformation of Chester House (Harare) from office use to a licensed hotel is actively underway in collaboration with an appointed reputable international operator, with completion expected by Q2 2026.
“Ongoing maintenance works at Electra House and Africa House, including elevator refurbishments, are anticipated to enhance their overall appeal, attract more tenants, and ultimately improve performance of the properties.”
Revitus said real estate remained a favoured investment, offering capital preservation and steady rental income despite macroeconomic uncertainties.
“Recovery across commercial, residential, and industrial sectors is expected to drive gradual growth,” it said.
“The oversupply of CBD office spaces from COVID-19 is gradually decreasing as many are converted to mixed-use developments, with office rentals adjusting downward to meet demand.
“The REIT maintains cautious optimism, mindful of potential risks and opportunities in the CBD areas where all its properties are situated.”
The REIT anticipates continued economic growth driven by a good agricultural season, infrastructure improvements, and rising investor confidence.
“In Q1 2025, the restrictive monetary policy stabilised exchange rates and eased inflation. Activity in capital markets was subdued due to liquidity constraints,” Revitus said.
“Statutory Instrument 34 of 2025, gazetted in April, signals a shift to more flexible exchange rate policies and reducing currency risks.”
In its full-year financial performance ended December 31, 2024, the REIT reported a net profit of US$665 756 from a prior year comparative of US$195 574.
“A substantial share of the REIT’s income is generated in US$, which provides a hedge against inflation-related exchange rate fluctuations. Earnings per unit reported for the year were US$0,18 per unit,” Revitus said.
“The valuation of investment properties appreciated by 2,2%, ending the year at US$13,5 million.
“Ongoing short-term repairs and maintenance initiatives are being systematically funded through operational cash flows, adopting a phased approach aimed at enhancing the condition and appeal of the seeded assets.”
Revitus said this strategy was intended to support tenant retention and attract new tenants, thereby strengthening the overall portfolio outlook.
