With just three months after its initial public offering (IPO), real estate company Tigere Property Fund has rewarded its Real Estate Investment Trust (REIT) unit holders their first dividend.
Tigere Real Estate Investment Trust declared a maiden dividend of US$ 152 577 as well as an additional ZW$ 75,816,772 in respect of the period ended 31 December 2022.
Tigere listed on the Zimbabwe Stock Exchange (ZSE) on 30 November last year.
In its financial statement for the period ended 31, December 2022, rental income stood at US$ 205 032 aided by utilities income of US$ 37 408. Utilities expenses consisting of almost 20% of revenue at US$ 41 641 led to a net property income of US$ 200 799.
With operating expenses reaching US$ 71 325, the REIT managed to post a total comprehensive income of US$ 130 040 during the period.
“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,” said Brett Abrahamse from Terrace Africa Asset Management in a statement.
The Asset manager’s reports stated that performance for the period was in line with expectations and both assets will reach 100 percent occupancy levels within Q1 of 2023.
“Well located real estate, with strong leases will continue to be a hedge against inflationary pressures within Zimbabwe. We expect further growth in USD revenue contribution for the next reporting period.”
The Shopping Centres have shown positive growth in customer visits and average turnovers, as new restaurants open and cement their position in the new respective nodes.
The Asset Manager has also identified additional areas of income through various leasing and marketing opportunities.
The Trust has long-term loan of US$ 762 383 with an interest rate of zero percent for the first three years and thereafter 12.5 percent.
The loan has a repayment date of 30 September 2027.
