Online Reporter
Tapiwanashe Mangwiro
Tigere Property Fund says it will enter the 2026 financial year with confidence, underpinned by a larger portfolio, rising earnings momentum and an ambitious pipeline of new retail and mixed-use developments.
Management says the Real Estate Investment Trust (REIT) is now positioned to deliver stronger and more predictable income flows, following what it describes as a transformational year in 2025.
In its pre-close statement for the period ending December 31, 2025, Tigere REIT said it expected the distributable income yield on the net asset value for 2026 to fall within the 6,8 percent to 7,1 percent range, with management confident of achieving the upper end of this spread.
The fund is also targeting to pay a minimum dividend of US$1 million per quarter in the forthcoming financial year.
The positive outlook follows a year of rapid expansion and improved operating performance.
According to the statement, “FY2025 was a transformational year for the Tigere REIT, characterised by decisive execution, material acquisitive growth, and strong operational performance.”
The fund said the growth was driven by yield-accretive acquisitions, sustained tenant demand, positive rental growth and disciplined cost control.
A major highlight of the year was the acquisition of Greenfields Retail Centre and Zimre Park Drive-Thru during the fourth quarter of 2025.
The transaction, approved by unitholders, had an all-in consideration of US$25,13 million and involved the issuance of 770,5 million new units.
The Greenfields Retail Centre was acquired at a net initial yield of 9,20 percent, while Zimre Park Drive-Thru was acquired at a 7,74 percent yield.
Following these acquisitions, Tigere REIT’s market capitalisation has increased to over US$101 million, based on a 30-day volume-weighted average price as of the date of the statement.
Management said the enlarged portfolio had delivered meaningful scale benefits, with the operating expense ratio expected to decline to between 16,5 percent and 18,5 percent in 2025, from 23,2 percent in the prior year.
Earnings performance has also strengthened.
The fund expects FY2025 distributable earnings to exceed US$2,3 million, with earnings per unit projected to range between 19 and 19,80 US cents.
This represents a year-on-year increase of between 17 percent and 22 percent, driven by yield-accretive acquisitions and strong tenant trading performance.
The Greenfields Retail Centre has emerged as a key contributor to income growth, performing above expectations.
Tigere Property Fund noted that tenants, including Smokehouse, Hungry Lion, Rocomamas, Spar, Liquor Supplies and Rollers, recorded positive turnover growth against budget, supporting higher portfolio income by year-end.
