Nqobile Bhebhe
Zimpapers Business Hub
PFUMA Fund is targeting total income of at least US$3 million and net distributable earnings of US$2,5 million this financial year, buoyed by growth in rental revenue, property development investments and anticipated festive-season trading activity.
The property investment fund expects increased consumer spending during the festive season to support retail, food and forecourt turnover in the fourth quarter this year (Q4 F26), boosting its income-generating property portfolio.
The outlook follows a robust third quarter, supported by the addition of the Cork Road Quick Service and Casual Dining Centre and high variable rental income from its Chegutu property, which continues to outperform expectations.
The Victoria Falls Stock Exchange-listed Real Estate Investment Trust Pfuma said rental income increased by 39,9 percent to US$648 049 in the third quarter, from US$463 287 recorded in the second quarter of 2026.
However, the growth was partly offset by a 29 percent decline in investment income as the fund continued deploying cash into its property development pipeline.
“Pfuma delivered a robust third quarter anchored by the addition of the Cork Road Quick Service and Casual Dining Centre and variable rental income from the Chegutu property that continues to perform above expectations.
“Rental income was up by 39,9 percent to US$648 049 (Q2 2026: US$463 287); however, that increase in rental income was offset by a 29 percent decline in investment income as the fund continues to deploy funds into the development pipeline,” it said in its trading update for the quarter ended 30 September.
“As cash held in interest-earning investments is drawn down to fund these developments, investment income will continue to decline ahead of the completion of the assets it is funding.
“We expect this trend to reverse in the coming quarters as completed development assets come online and replace short-term investment income with long-term rental income.”
Distributable income increased by 14,6 percent in the third quarter to US$752 372 compared to the preceding quarter, bringing cumulative year-to-date distributable income to US$1 880 054.
The fund invested a further US$1,304 million into its development pipeline during the quarter as it continues to expand its income-generating property portfolio.
The anticipated improvement in festive-season trading is expected to support business activity across its retail, food and forecourt properties, although the fund remains alert to wider macroeconomic and operational risks.
“We expect festive-season trading to support retail, food and forecourt turnover in Q4 F26 and continue to monitor key risks such as currency and monetary policy changes, liquidity conditions, power supply, fiscal measures affecting consumer spending.
“The fund is targeting no less than US$3 million total income for the year and net distributable income of US$2,5 million.”
Pfuma said the operating environment continues to benefit from tight monetary policy, which has helped anchor inflation and exchange rate expectations, supporting property as a store of value, particularly well-located assets generating consistent rental income.
“While retail spending and property valuations continue to predominantly be denominated in US dollars, constraints remain, namely limited long-term funding, high borrowing costs, tight liquidity and periodic policy uncertainty.
“Demand for modern warehousing and distribution space continues to exceed supply. Much of the existing industrial stock in established nodes is ageing and poorly configured for current logistics needs.
“National retailers, manufacturers and distributors are increasingly seeking build-to-suit and sale-and-leaseback solutions. Construction costs remain largely USD-based and influenced by imported materials, the cost of energy and finance. Institutional-grade, income-producing property remains in short supply as pension funds, insurers and other investors continue to seek high-quality, US dollar-denominated real assets.”
The fund’s performance reflects the growing contribution of rental income as it shifts capital from short-term interest-earning investments towards completed property developments expected to generate recurring revenue.
Meanwhile, Pfuma Fund declared an interim dividend of US$677 135 for the quarter ended 30 September 2026, representing 90 percent of distributable income.
The distribution was made after taking into account regular maintenance expenditure required to sustain the operating properties.
“Pfuma Fund declared an interim dividend of US$677 135 for the quarter ended September 30, 2026, being 90 percent of distributable income, having considered important regular maintenance expenditure for the operating properties.”
