Tigere Property Fund, Zimbabwe’s first real estate investment trust (REIT) has declared its maiden dividend of US$ 152 577 in line with its Listing Prospectus.
The REIT, which was listed on the Zimbabwe Stock Exchange on 30 November 2022, will pay a dividend of 0,021 United States cents per unit as well as an additional ZW$ 75,816,772 being 10,54 Zimbabwe Cents per unit for the period.
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 percent of their distributable income to Unit holders each financial year.
“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.
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 and exciting 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.
“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,” added Abrahamse.
The dividend will be payable on the 24th of February 2023 to all Unit holders 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.
