Listed real estate investment trust (REIT) Tigere has raised concerns over looming mono-currency uncertainties, warning that the policy shift is threatening funding streams in the sector.
The concern stems from recent remarks by central bank officials suggesting that Zimbabwe could transition to an exclusive use of the local currency by 2030. Authorities have indicated that efforts are underway to build foreign reserves and ensure macroeconomic stability ahead of the potential currency shift.
Presenting its financial results for the year ended, Tigere said the policy signals have already started impacting confidence within the sector.
"Given continued uncertainty surrounding the 2030 migration to mono-currency, the real estate sector remains predominantly equity-financed," the company said.
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Equity financing refers to the process of raising capital by selling shares in a company to existing shareholders or new investors.
Commenting on the mono-currency plans, the International Monetary Fund (IMF) mission stressed the importance of further strengthening the monetary and foreign exchange frameworks. IMF staff also underscored the need to complement such efforts with measures that enhance demand for the Zimbabwe Gold (ZiG) currency.
Despite these challenges, Tigere reported a solid performance. Net Property Income stood at US$1,205,846, up 56.6% from the previous year, driven largely by the inclusion of Highland Park Phase 2 in FY24, which continues to demonstrate growth in income and customer traffic.
The fund's profitability remained robust, despite intensified competition and a volatile currency environment. Total Dividend Per Unit (DPU) rose by 44.8% year-on-year to US0.0951 cents, while Earnings Per Unit (EPU) increased 25.8% to US0.0925 cents. This was achieved despite a 48.8% increase in the number of units in issue, supported by an 87.2% year-on-year rise in comprehensive income to US$990,155.
Collection rates also improved to 87.3% in HY25, up from 81.2% in the comparable period, following the implementation of stricter rental collection policies.
