Investors that bought into the Tigere Property Fund’s real estate investment trust (REIT) will share over US$150,000 and Z$75 million from the fund’s maiden dividend.
The Tigere REIT was the first such investment to be listed on the Zimbabwe Stock Exchange when it made its debut on 30 November 2022. In line with its prospectus, Tigere has declared a dividend of US$152,577, or 0,021 United States cents per unit, plus an additional Z$75,816,772 (which is 10,54 Zimbabwe Cents per unit), for the period.
A REIT allows a company to pool investor funds into real estate investments. Investors buy units in the trust and share profits from the investments. Tigere currently holds two properties, Highland Park Shopping Mall and Chinamano Corner, both built by Terrace Africa. The company is developing new properties to add to the Tigere portfolio, including a hotel, a mall at the showgrounds in Harare, and an office complex.
Terrace Africa expects all its properties to be occupied this quarter, says Brett Abrahamse from Terrace Africa Asset Management.
“We have seen exceptional turnovers from our retail and food-related tenants. Performance of the portfolio was in line with expectations and our assets will reach 100% occupancy levels within Q1 of 2023. The key characteristic of a REIT distributing regular income is now a reality in Zimbabwe,” Abrahamse says.
“The portfolio is collecting a substantial amount of its revenues in USD which further drives the value proposition to our investors. We are very excited about Tigere REIT’s prospects for 2023 and look forward to delivering on our mandate to investors,” adds Abrahamse.
Under listing guidelines in Zimbabwe, a REIT must pay a minimum of 80% of its distributable income to unitholders each financial year.