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Enacy Mapakame Business Reporter
Zimbabwe’s only listed Real Estate Investment Trust (REIT), Tigere Property Fund, expects an uptick in US dollar revenue for its shareholders in dividends as revenue exposure in foreign currency is now above 80 percent.
Resultantly, the REIT increased US dollar dividend for the quarter to March 31, 2023 to US$219,83, as the group maintains a consistent quarterly dividend policy.
“In line with our commitment to pay quarterly distributions, the REIT declared an interim dividend for the quarter of US$219 839 consisting of US$101 325 (being US$0,014 per unit) as well as an additional $110 050 700 being (15,29 cents per unit) in respect of the period ended 31 March 2023, as communicated in the dividend notice of the 6 of April 2023,” said Tigere.
Tigere listed on the ZSE on November 30, 2022 and commenced trading on December 1, 2022. In January alone, the Tigere REIT rose 23 percent in Zimbabwe dollar terms and 6 percent in US dollar terms on the bourse.
In line with its solid performance, the REIT declared its maiden interim dividend of US$152 577 (being 0,021 United States cents per unit) as well as an additional $75 816 772 (being 10,54 Zimbabwe cents per unit) in respect of the period ended 31 December 2022.
With an increase in US dollar revenue for the quarter to March 31, 2023, Tigere is also expecting its unit holders to enjoy more US-denominated rewards.
“By March 2023, the portfolio had reduced its ZWL (Zimbabwe dollar) revenue exposure to below 20 percent and the Asset Manager expects increased hard currency collections which will result in a higher proportion of USD dividends payable to unitholders,” said Tigere in a trading update for the quarter under review.
The REIT comprises Highland Park Shopping Centre along the Emmerson Mnangagwa Road (formerly Enterprise Road) as well as the Chinamano Corner both in Harare. During the quarter, Tigere REIT enjoyed 100 percent occupancy levels in line with projections. Its net property income closed the period at US$381 569 while total comprehensive income was pegged at US$221 262.
Net asset value closed the period at US$22 409 million while rent per square metre was at US$17.
“The property market has provided proven stability during the period and well-located real estate continues to attract high-quality tenants to deliver premium yields and cash flows.
“During the quarter we have continued to see the real estate and construction sectors expand as more participants seek to secure long-term hard currency value,” said Tigere.
According to the REIT, both Highland Park and Chinamano Corner have grown their customer counts during the period as new restaurants and tenants opened for trade. The increased activity has been visible in the tenant turnovers and fuel volumes recorded. These retail assets continue to attract strong tenants who are willing to invest in quality store fitouts.
Meanwhile, Highland Park Phase 2 is currently under construction and is expected to open in Q4 2023.
The additional lifestyle and food-related tenants will further entrench Highland Park as a premier lifestyle and shopping venue within Harare.
“The Tigere REIT holds a pre-emptive right to acquire Phase 2 on completion. Additional pipeline projects are also progressing and updates will be provided in the next quarterly report,” said Tigere.
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