THE Tigere Property Fund real estate investment trust (Tigere REIT) dividend payout for the quarter ended June 30, 2023, rose 16,08% to US$255 202, sending a positive signal over the asset’s short-term growth.
During the first quarter, the Tigere REIT paid out US$219 839, made up of US$101 325 (being US$0,014 per unit) and $110 050 700 ($15,29 per unit).
The REIT was launched by property development and asset managers, Terrace Africa Asset Management (TAAM) in November 2022, becoming the first such asset class to be listed in Zimbabwe. Upon its listing on the main bourse, the REIT had a net asset value of US$22,2 million.
In a statement over the dividend payout, TAAM said the disbursement of funds was made up of US$218 087 (being US$0,03 per unit) and $167 651 585 (being $23,30 per unit).
“Tigere is a listed REIT on the Zimbabwe Stock Exchange. Notice is hereby given that the REIT has declared its quarterly dividend of US$255 202 made up of US$218 087 (being US$0,03 per unit) as well as an additional $167 651 585 (being $23,30 per unit) in respect of the period ended 30 June 2023,” TAAM said, in the statement released last week.
“The dividend will be payable on or about the 31st of August 2023 to all unit holders of the company registered at the close of business on 25th of August 2023. The units will be traded cum dividend on the Zimbabwe Stock Exchange up to 21st of August 2023 and Ex dividend as from 22nd of August 2023.”
TAAM said the applicable unit holders’ tax will be deducted from the gross dividends.
“All unit holders who are yet to provide both their ZWL and Nostro bank account details are requested to submit to our transfer secretaries,” TAAM said.
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The underlying portfolio's rental income and the sale of portfolio assets both contribute to the dividend income, the primary way unitholders earn income from the REIT.
Total income during the second quarter was US$862 636, against operating expenses of US$244 448.
From the income, rental revenue was US$790 523 while US$157 373 came from utilities income.
However, exchange movements caused a loss for the REIT of US$50 796.
“The property market continues to see transactional growth with sale of existing stock and numerous developments taking place across the country. Steps to improve the regulatory environment for the property market are being taken by Industry and government, which will make it easier for all investors to participate,” TAAM said.
“Increased demand for properties due to a growing population as well as out-dated stock has also provided significant growth opportunities. Tenant demand within most sub-sectors remains strong due to shortage of quality stock.”
The fund had been seeded with two properties under Terrace Africa, namely, Highland Park Phase 1 and Chinamano Corner, both located in Harare.
“Highland Park and Chinamano Corner have experienced increased customer traffic during the period under review. New tenants, among them restaurants have opened for trade underpinning the strong performance of the two assets. The surrounding areas continue to benefit from having high quality retail shopping experiences,” TAAM said.
“Occupancy reached 100% during the period under review due to an upsurge in demand for space at our assets. There is also a strong waiting list of potential tenants. Significant construction progress is being made on Highland Park Phase 2 and the project is expected to be completed in Q4 2023. The Tigere REIT holds a pre-emptive right to acquire Phase 2 on completion.”
