TIGERE Real Estate Investment Trust (Tigere) remains one of the most attractive assets listed on the Zimbabwe Stock Exchange (ZSE), thanks to its consistent dividend pay outs and strategic commitment to investing in high-yielding properties, according to FBC Securities.
As the country's first listed real estate investment trust, Tigere REIT boasts a portfolio of two properties-Highland Park Phase 1 and Chinamano Corner.
The trust is set to expand its holdings with the impending acquisition of its third property, Highland Park Phase 2.
In its latest research paper on the fund, research firm FBC Securities noted that Tigere REIT remained attractive and profitable.
“Tigere REIT remains one of the attractive ZSE-listed investment assets due to its consistency in paying out regular dividends and commitment to invest in more yield accretive properties,” the report reads in part.
“Due to the high-quality state of its properties, the trust attracts reliable and quality tenants, with occupancy rate currently at 100%.”
However, the research firm noted a marginal decline in the REIT's half-year 2024 (HY24) financial performance compared to HY23, primarily due to exchange rate volatilities in the first quarter of 2024.
These volatilities caused price distortions and reduced volumes for Highlands Park's anchor tenant, TM Pick n Pay.
“With the relative monetary sector stability brought about by the introduction of the ZiG (Zimbabwe Gold), the trust expects improved financial performance in HY2 2024,” it said.
Tigere boasts of various highly promising pipeline projects that are expected to be operational between the end of 2024 to end of 2025.
These include Greenfields Retail Centre — Harare Showgrounds, Kadoma Shopping Centre, Highland Park Precinct, RuwaZimre Park project, and the Bulawayo project.
These additions will increase unitholders’ value, FBC Securities noted.
On August 29, 2024, the fund’s unitholders approved the acquisition of Highlands Park Phase 2, which is expected to generate a 25% increase in net income and allow the REIT to be adequately diversified.
Highland Park Phase 2 is a property adjacent to Phase 1 and is currently wholly owned by Modern Touch Investments.
Modern Touch is an associate company of Frontier Real Estate, the promoter and major unit holder in Tigere REIT.
Tigere REIT’s asset manager and trustee believe that acquiring this third property aligns well with the REIT’s investment philosophy and will be in the best interest of unit holders.
Phase 2 is being valued at US$10,83 million.
The fund has set out an ambitious target to grow the REIT to US$100 million in the next five years and acquiring this property will be one of the steps towards achieving that goal.