• Investment property surged 57% to US$31.47 million, driven by additions and positive revaluation, despite a deliberate slowdown in stand sales
• The REIT prioritized long-term value creation over short-term trading profits, with key infrastructure works completed and flagship projects underway
• Total assets grew 65% to US$39.46 million, with net asset value rising 51% to US$30.17 million, supported by fresh capital inflows and long-term bank facilities

Harare- Eagle Real Estate Investment Trust, Zimbabwe's first dollar listed reit, has delivered a textbook development-focused performance in 2025, prioritising long-term value creation over short-term trading profits. While total income fell 49% to US$3.58 million and profit for the year declined to US$2.93 million (from US$5.74 million), these headline figures mask the strategic pivot that defines the REIT’s progress.

Revenue from stand sales dropped sharply from US$2.74 million to US$0.96 million as management deliberately slowed disposals to retain and develop higher-value assets, yet this was more than offset by a US$3.35 million fair-value gain on investment property and the successful completion of key infrastructure works. Gross profit contracted to US$0.24 million, but operating expenses were tightly controlled at a 19.3% cost-to-income ratio, preserving cash discipline during the capital-intensive development phase. 

The real story lied in the balance-sheet transformation where investment property ballooned 57% to US$31.47 million (from US$20.07 million), driven by US$8.78 million in additions and the positive revaluation. Total assets grew 65% to US$39.46 million, while net asset value rose 51% to US$30.17 million, supported by fresh unitholder subscriptions of US$6.82 million and convertible debenture issuances. This capital inflow, together with new long-term bank facilities, has funded the accelerated build-out of two flagship projects that will underpin future recurring rental income.

Operationally, the REIT hit critical milestones. Phase one of Mazowe Mall was fully completed and 93% leased, with anchor tenants Spar, Simbisa Brands, Profeeds and Redan already trading; a new Chicken Inn drive-through is scheduled to open in July 2026, pushing occupancy toward 100%.

At Victoria Falls, civil infrastructure and bulk earthworks for the 111-key hotel, 39-bed premium hospital (expanding to 56 beds) and associated hospitality apartments are complete, with apartment construction under way since January 2026 and hospital and hotel tenders finalised for Q2 and later-2026 starts respectively. These assets sit in high-growth corridors, emerging residential and commercial precincts, tourism hubs and health-service nodes, precisely where market demand is concentrating.

The clean, unqualified audit opinion from Kreston Zimbabwe confirms that the financial statements fairly present the REIT’s position under IFRS, with no key audit matters identified and going-concern status explicitly affirmed. The shift from trading profits (stand sales) to development and fair-value recognition is exactly the model a listed REIT is expected to follow: recycle capital into income-producing assets while capturing uplift through professional valuations.

With net cash from financing activities of US$11.71 million and cash balances stable at US$3.95 million, the REIT enters 2026 with strengthened liquidity and a visibly derisked development pipeline. 

Analytically, 2025 marks the inflection from asset-trading to asset-creation. The lower earnings per unit (2.10 US cents versus 4.93) is temporary and fully explained by the deliberate slowdown in disposals; the 51% NAV growth and 57% property portfolio expansion signal sustainable long-term compounding. For investors on the Victoria Falls Stock Exchange, Eagle REIT has demonstrated execution capability on two major mixed-use schemes while maintaining a conservative cost structure and robust capital base.

The next 12–18 months will see these assets move from construction to revenue generation, converting the 2025 investment spend into stable, high-quality rental streams and further fair-value accretion. The REIT is now positioned as one of Zimbabwe’s most visible pure-play development vehicles, with tangible progress that de-risks its growth story and supports its role as a conduit for institutional and retail capital into the country’s evolving property market.

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