Tigere REIT expands portfolio to drive sustainable income

27 Mar, 2024 - 00:03 0 Views
Tigere REIT expands portfolio to drive sustainable income

eBusiness Weekly

Business Writer

Tigere REIT is setting its sights on significant growth, aiming to surpass US$100 million in assets under management within the next three years while maintaining its current robust dividend payout ratio.

This ambitious plan is driven by Tigere REIT’s focus on delivering long-term value to its unitholders, the company said in a statement.

“Tigere REIT has been a successful market participant since its listing (on the Zimbabwe Stock Exchange(ZSE)) in November 2022,” said the company. “The REIT is well positioned to deliver sustainable income over the medium to longer term.”

The company said it would prioritise growing distributable income and reduce risk by diversifying. This includes diversifying their tenant base, geographic reach, and the types of properties they hold.

“Key focus area of the management team are to grow the distributable income and provide risk mitigation over the coming years through diversity of tenancy, geography and asset type,” said the company.

Through its developer relationships, the REIT has secured a pipeline of new, exciting retail and commercial assets that will form part of its growth strategy.

In full year to December 31, 2023, Tigere realised net property income of US$1,5 million, a positive indicator of its income-generating capabilities. This was further bolstered by continued high occupancy rates at both Highland Park Phase 1 and Chinamano Corner both in Harare, along with sustained demand for retail space within these properties.

Tigere REIT’s property portfolio also saw an increase in valuation by 1,18 percent, reflecting a rise in the underlying value of its assets.

The official opening of Highland Park Phase 2 in December 2023 marked a significant milestone for Tigere REIT’s expansion strategy.  The REIT holds the pre-emptive right to acquire this phase at an attractive yield, offering the potential for future capital gains.

Tigere REIT declared a final dividend of US$312,367 for the quarter ending December 2023.  This brings the total annual dividend payout to US$1,1 million, reflecting a distribution ratio exceeding 90 percent of net income.

Commenting on the company’s performance, Brett Abrahamse, managing director of Terrace Africa Asset Management (Tigere REIT’s manager), expressed optimism. “We are thrilled with our first full year’s results,” he said.

“We anticipate continued stability in hard currency income and dividend payouts, bolstered by strong tenant turnovers in the retail and food sectors.

“New acquisitions will further diversify our portfolio geographically, by sector, and across tenants,” he explained. Our unwavering focus remains on delivering sustainable growth for the benefit of our unitholders.”

Tigere REIT was listed on the ZSE in November 2022. It aims to deliver attractive risk-adjusted returns via quarterly dividend payments to its unitholders.

A Real Estate  Investment Trust is a collective investment vehicle that allows investors to pool capital, which is then invested in a portfolio of selected properties for a return.

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