Investors in the Tigere Property Fund’s Real Estate Investment Trust (REIT) have reason to cheer. The first REIT to be listed on the Zimbabwe Stock Exchange, Tigere, will distribute over US$150,000 and $75 million ZWL from its maiden dividend. Tigere REIT was launched on the Zimbabwe Stock Exchange on 30th November 2022, with the declaration of a dividend of US$152,577 or 0.021 United States cents per unit, plus an additional Z$75,816,772 (10.54 Zimbabwe cents per unit) for the period.
What is a REIT?
A REIT is a way for a company to gather investment funds for real estate. Investors purchase units in the trust and share profits from the investments. Tigere currently holds two properties, the Highland Park Shopping Mall and Chinamano Corner, both built by Terrace Africa. The company has more developments in the pipeline, including a hotel, a mall at the Harare showgrounds, and an office complex.
Performance of the Portfolio
The portfolio has seen exceptional turnover from its retail and food-related tenants and is expected to reach 100% occupancy levels within the first quarter of 2023, according to Brett Abrahamse of Terrace Africa Asset Management. Substantial USD Revenues A key advantage of the portfolio is that it collects a substantial amount of its revenues in USD, which further drives the value proposition to investors.
Brett Abrahamse of Terrace Africa Asset Management says that the portfolio has seen impressive turnover from its retail and food-related tenants and is expected to reach 100% occupancy levels within the first quarter of 2023. The portfolio is performing in line with expectations and will soon achieve 100% occupancy levels, which is a key characteristic of a REIT that distributes regular income, says Abrahamse.
The portfolio collects a substantial amount of its revenue in USD, which provides added value to investors. Abrahamse says, “We are very excited about Tigere REIT’s prospects for 2023 and look forward to delivering on our mandate to investors.”
Zimbabwean Listing Guidelines?
Under Zimbabwean listing guidelines, a REIT must pay a minimum of 80% of its distributable income to unitholders each financial year. This means that investors in the Tigere REIT can look forward to a steady stream of income.
The Tigere Property Fund’s real estate investment trust (REIT) made history when it became the first REIT to be listed on the Zimbabwe Stock Exchange on November 30th, 2022. The Tigere REIT is set to share over US$150,000 and Z$75 million from its maiden dividend with its investors, marking a major milestone for the investment fund. The portfolio is expected to reach 100% occupancy levels in Q1 2023, and its substantial USD revenues further drive its value proposition to investors. Terrace Africa is eager to deliver on its mandate to investors and is excited about the prospects for Tigere REIT in 2023.
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