Tigere Property Fund, Zimbabwe’s first Real Investment Trust (REIT) has declared a dividend of ZW$76 million plus an additional US$153 000 in line with its listing prospectus.
This will result in a dividend pay-out of 0,021 United States cents as well as 10,54 Zim$ cents per unit.
The dividend will be payable on the 24th of February 2023 to all Unitholders registered at the close of business on 17th of February. The shares will be traded cum dividend on the Zimbabwe Stock Exchange up to 14th February 2023.
REITs are an investment vehicle regulated under the Collective Investment Scheme Act. Per Listing guidelines in Zimbabwe, a REIT is obligated to pay a minimum of 80% of their distributable income to Unitholders each financial year.
Commenting on the REIT performance since listing, Terrance Africa Asset Management official, Brett Abrahamse confirmed that there has been significant payback on investments.
“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” he said.
He said the portfolio is collecting a substantial amount of its revenues in US$ which further drives the value proposition to our investors and expressed excitement about Tigere REIT’s prospects for 2023 and look forward to delivering on our mandate 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 infrastructure development projects.
The Tigere REIT currently comprises two commercial real estate assets, namely Highland Park Shopping Centre and Chinamano Corner.
Unit holders in the Tigere REIT will also have access to an exciting property development pipeline, which comprises a luxury hotel and integrated office park as well as a shopping mall at the Showgrounds in Harare.