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Business Reporter

Tigere Property Fund says it has positioned itself for sustained growth with a pipeline of ‘exciting’ acquisition opportunities for new developments.

The first Zimbabwean Real Estate Investment Trust (REIT) to be listed on a local exchange, Tigere said its REIT delivered an impressive financial performance for its first full year of trading to December 31, 2023, and declared a full-year dividend of US$1 056 million dividend.

“Despite the challenging economic environment, the REIT has demonstrated resilience, delivered on dividend expectations, and positioned itself for continued growth with a pipeline of exciting acquisition opportunities on new developments,” the company said in its financials.

The firm said the Highland Park Phase 1 and Chinamano Corner projects maintained 100 percent occupancy in the second half of the year, while all the tenants have swiftly met their operational mandates to date.

Tigere said the Highland Park Phase 2 properties officially opened for trading in December 2023, and were well received by consumers, as evidenced by the increased foot traffic and turnovers across all tenants.

“Phase 2 has provided a further boost to Phase 1 tenants, and as it stands, there is an extensive waiting list of tenants for the available spaces.

The firm said the Tigere REIT held a pre-emptive right to acquire Phase 2, and in a cautionary statement, it said it was engaged in negotiations with a related party to acquire Highland Park Phase 2 for inclusion in the REIT.

Terrace Africa Asset Management managing director, Mr Brett Abrahamse, said that through its developer relationships, the REIT had secured a pipeline of new, exciting retail and commercial assets that will form part of its growth strategy.

The REIT has an ambitious target to grow beyond US$100 million in assets under management within the next three years, while at the same time maintaining its strong dividend pay-out ratio.

“We are very pleased with the results of our first full trading year, and we anticipate continued stability in hard currency revenue and dividend payouts. The REIT has also benefited from strong and growing retail and food tenant turnovers.

“New acquisition opportunities will provide the REIT with future geographic, sectoral, and counterparty diversification,” he said.

He added that the firm remains committed to delivering sustainable growth and creating long-term value for its unitholders.

A REIT is a collective investment vehicle that allows investors to pool capital, which is then invested in a portfolio of selected properties for a return.

Investors are certain of dividend yields and payments as REITs are mandated to distribute a minimum of 80 percent of net income.

During the period under review, the REIT saw an increase in USD receipts as the reporting period progressed and as ZWL liquidity tightened in the market.

However, the final dividend of US$312 367, being 0,0434 United States cents per unit in respect of the quarter ended December 31, 2023, will be payable on or about April 30, 2024, to all unitholders of the REIT registered at the close of business on April 26, 2024.