Online Reporter
Nelson Gahadza
Business Reporter
TIGERE Property Fund investors have opted to receive their latest dividend in the form of additional units rather than cash, highlighting strong appetite for exposure to its real estate portfolio as it pursues more acquisitions.
According to a notice issued by Terrace Africa Asset Management, the manager of Tigere REIT, 91,48 percent of eligible units elected the scrip option, resulting in 28 335 929 new units being issued instead of the dividend.
Only 2,64 percent of units opted for a cash payment, while holders representing 5,88 percent of units did not submit election forms and will therefore receive the default cash option.
The elections were closed on September 2, 2026, at 4 pm.
Based on the elections, Tigere REIT will pay a total gross dividend of US$86,380,45 at a rate of US$0,05449 cents per unit. The amount includes withholding taxes applicable to both cash and scrip options.
The strong preference for the scrip option comes as Tigere continues to expand its property portfolio and strengthen earnings.
In its financial statements for the six months ended June 30, 2026, the REIT reported a 97 percent year-on-year increase in rental revenue to US$2,17 million, while net property income rose 84,7 percent to US$2,23 million.
The growth was attributed to the inclusion of Greenfields Retail Centre and Zimre Park Drive-Thru in the portfolio, positive rental reversions of 7 percent and in-force rental escalations of 5,31 percent across the portfolio.
On a like-for-like basis, rental revenue increased 3,6 percent despite redevelopment-related vacancies at Highland Park Phase 1 during the period.
Occupancy remained high at 97 percent during the period, with the manager saying committed occupancy was 100 percent as tenants were expected to commence trading during the second half of the year.
The REIT said the broader property market continued to show an upward trajectory, supported by new development activity and increased capital raising in the REIT sector.
It also noted growing demand for quality retail space, including from international entrants and blue-chip hardware businesses benefiting from Zimbabwe’s construction boom.
The sector’s outlook, according to Tigere, remains supported by foreign currency receipts and the ability of property investments to provide an inflation hedge.
Meanwhile, Terrace Africa said the REIT manager Is negotiating the acquisition of a yield-accretive property from Electrosales in Zvishavane.
The proposed transaction forms part of Tigere’s plans to diversify and grow its portfolio during the second half of the year.
Other projects under consideration include Design Quarter and Parkade, Cardinals Corner, Kadoma Retail Centre Phase 1 and Gweru Retail Centre Phase 1.
The manager said a market update would be issued to unitholders as developments on the proposed Electrosales transaction emerge.
