ONE of Zimbabwe’s leading investment advisories said investors must consider consolidating their real estate holdings into Real Estate Investment Trusts (REITs) to maximise returns, improve liquidity, and enhance governance.
The recommendation by FBC Securities comes amid growing investor interest in REITs as an accessible entry point into the stock market.
According to the Zimbabwe Stock Exchange Holdings (ZSE Holdings), demand for REITs has been rising as investors seek diversified and structured real estate exposure.
In a recent market insight, FBC Securities outlined the advantages of REITs, stating: “You may consider consolidating your real estate assets into a listed REIT structure. This offers a pathway to unlock liquidity, enhance governance, and attract long-term capital.”
The firm also highlighted key steps for establishing a REIT, emphasising the importance of regulatory approvals, proper structuring, and collaboration with a sponsoring broker for listing on either ZSE or the Victoria Falls Stock Exchange (VFEX).
“You will need advisors with capital markets experience and understanding of property linked instruments,” it said.
“Investor mobilisation, compliance, and transaction coordination require specialised expertise.”
During the first quarter of this year, the ZSE recorded a 6,65% decline in equity turnover to ZiG951,29 million (US$35,54 million) while turnover for exchange traded funds plunged by 96,64% to ZiG273,285 (US$10 210,38).
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However, REITs turnover surged by 18,06% to ZiG21,97 million (US$820 835,85). By the second quarter, the total value traded on the REIT board was ZiG89,44 million (US$3,31 million), representing a 307,06% increase from the first quarter.
The total number of REIT units that exchanged hands during the second quarter was 75,15 million, a huge increase from the first quarter.
Hence, the market capitalisation for the REITs market was ZiG1,54 billion (US$57,15 million) as at the end of June.
In an interview with businessdigest, ZSE Holdings chief executive officer Justin Bgoni said in Zimbabwe when people were uncertain about the market, they preferred property.
