Vusumuzi Dube
Judith Phiri, Business Reporter
TIGERE Property Fund, Zimbabwe’s first real estate investment trust (REIT) has declared its quarterly dividend of US$219 839 in line with its Listing Prospectus.
The REIT, which was listed on the Zimbabwe Stock Exchange on 30 November 2022, will pay a dividend consisting of US$101 325 being 0,014 United States cents per unit as well as an additional ZWL$110 050 700 being 15,29 Zimbabwe cents per unit in respect of the period ended 31 March 2023. Tigere REIT is affiliated with Terrace Africa Asset Management.
REITs are investment vehicles regulated under the Collective Investment Scheme Act. Per listing guidelines in Zimbabwe, a REIT is obligated to pay a minimum of 80 percent of its distributable income to unitholders each financial year.
“Performance of the REIT assets for the period was in line with expectations and both assets have reached 100 percent occupancy levels.
“By March 2023, the portfolio had reduced its ZWL exposure to below 20 percent of revenue and the Asset Manager expects increased hard currency collections which will result in a higher proportion of USD dividends payable to unitholders,” said Mr Brett Abrahamse from Terrace Africa Asset Management in a statement.
He said the dividend will be payable around 28 April to all unitholders of the REIT registered at the close of business on 21 April.
While the shares will be traded cum dividend on the Zimbabwe Stock Exchange (ZSE) up to 17 April and ex-dividend as from 19 April.
A REIT is a company that owns or finances income-producing real estate across a range of property sectors. These real estate companies have to meet a number of requirements to qualify as REITs.
Most REITs trade on major stock exchanges, and they offer a number of benefits to investors. Globally, REITs have been a popular product for investors searching for exposure to real estate with the promise of consistent dividend payments and liquidity.
In Zimbabwe, they are expected to encourage the growth of the property sector and provide funding for new and exciting infrastructure development projects.
The Tigere REIT comprises two commercial real estate assets, Highland Park Shopping Centre and Chinamano Corner.
Unitholders in the Tigere REIT will also have access to property development pipeline, which comprises a luxury hotel and integrated office park as well as a shopping mall at the Showgrounds in Harare.
Last year during the launch of the Tigere REIT, Minister of Finance and Economic Development Professor Mthuli Ncube emphasised how property will always be a key contributor to the economy within Zimbabwe.
He said that the REIT legislation will further encourage growth within the sector. Prof Ncube challenged other property owners and pension funds in the real estate and property development industry to take a cue from the Tigere REIT and focus on bringing new and exciting products to the market.
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