Tigere expects FX revenue growth

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ZIMBABWE’S only exchange-traded Real Estate Investment Trust (REIT), Tigere Property Fund, says it expects increased hard currency collections, which will result in a higher proportion of US dollar dividends.
During the first quarter ended March 31, 2023, the REIT, which was listed on the Zimbabwe Stock Exchange in November last year, declared an interim dividend of US$219 839 consisting of US$101 325 (being 0,014 United States cents per unit) as well as an additional $110,050,70.
“By March 2023, the portfolio had reduced its ZWL revenue exposure to below 20 percent and the asset manager expects increased hard cash collections, which will result in higher proportion of US$ dividends payable to unit holders,” the company said in a trading update.
REITs are described as investment vehicles regulated under the Collective Investment Scheme Act. In Zimbabwe, a REIT is obliged to pay a minimum of 80 percent of its distributable income to unit holders each financial year. In Zimbabwe, REITs are primed to support the growth of the property sector and provide funding for new infrastructure development projects.

Over the years, the property market has also remained one of the most lucrative investment options in Zimbabwe, offering real returns despite the prevailing economic headwinds in the country.
“During the quarter, we have continued to see the real estate and construction sectors expand as more participants seek to secure long-term and hard currency value,” Tigere REIT said.
Currently, the Tigere REIT comprises two commercial real estate assets — Highland Park Shopping Centre and Chinamano Corner.
“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 fit outs.
“Highland Park Phase 2 is currently under construction and is expected to open in the fourth quarter of 2023. The additional lifestyle and food related tenants will further entrench Highland Park as a premier lifestyle and shopping venue within Harare,” Tigere said.
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