Tapiwanashe Mangwiro — Tigere Real Estate Investment Trust (REIT) maintained solid performance during the third quarter of 2024, driven by strong occupancy across its properties.
Company official, Brett Abrahamse, speaking on behalf of the property manager, the acquisition of Highland Park Phase 2 marked a critical milestone for the REIT, which was officially approved by unitholders in an extraordinary general meeting (EGM) held on August 29, 2024.
The inclusion of this asset in the portfolio began yielding income benefits in September.
"The newly incorporated Phase 2 asset will bolster the yield and diversify the underlying portfolio, providing increased dividends to unitholders," Mr Abrahamse explained.
With this acquisition, Tigere REIT aims to enhance overall returns, offering its investors a more robust and diversified income stream.
Tigere REIT's Highland Park Phase 1 and Chinamano Corner shopping complexes have maintained full occupancy throughout the period under review.
This consistency in occupancy is seen as a reflection of the REIT's ability to attract and retain quality tenants.
Mr Abrahamse highlighted the positive performance of Highland Park Shopping Centre in August, where most tenants surpassed their December 2023 turnover levels, thanks to school holidays and a five-weekend month, which included the national Heroes Holiday.
"This period saw record turnovers at Highland Park Shopping Centre, with tenants performing exceptionally well.
"The devaluation of the local currency (ZiG) at the tail-end of the quarter was well received by retailers, and we foresee a recovery in the main anchor's sales volumes during the fourth quarter," Mr Abrahamse added.
Looking ahead, Tigere REIT expects a further boost to earnings as the festive season approaches, with increased foot traffic anticipated in the food and beverage sections of Highland Park.
Mr Abrahamse noted that this trend would likely provide a decent turnover rental boost to the REIT's earnings, reflecting the resilience of the retail segment amid challenging economic conditions.
In line with its strong performance, Tigere REIT declared an interim dividend of US$372 112, which translates to 0,03476 United States cents per unit, for the period ended September 30, 2024. The dividend will be paid on or around November 8, 2024, offering unitholders a tangible return on their investment.
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Mr Abrahamse emphasised the REIT's commitment to delivering consistent dividends to its investors, underpinned by its diversified property portfolio.
During the third quarter, the Zimbabwean real estate market showed buoyancy, with many new projects moving into the planning and development stages.
Mr Abrahamse noted that the demand for value-preserving assets, coupled with exchange rate volatility, had driven up prices across the real estate value chain, including rental levels. However, as new property developments enter the market, the demand-supply balance may start shifting in favour of tenants.
"We believe that well-located, quality assets will retain their premium rental status," Mr Abrahamse said.
He also underscored the importance of prudent cost management, noting that operating costs would ultimately shape the yields generated across the sector.
As Tigere REIT continues to expand its portfolio, its focus remains on identifying high-quality assets that can generate sustainable income for its investors, while navigating the challenges posed by the broader economic environment.
