Tigere REIT Delivers with Maiden Massive Dividend Declaration

Tigere Property Fund, Zimbabwe’s first-ever Real Estate Investment Trust (REIT) that we wrote about in an article published late last year, has declared its maiden dividend, providing a new investment opportunity for those seeking exposure to the country’s flourishing property sector. This exciting new development represents a major milestone for Zimbabwean real estate, marking the arrival of a new era in property investment and financing.

According to the Listing Prospectus, the REIT has declared a dividend of US$ 152,577 and will pay a dividend of 0.021 United States cents per unit, as well as an additional ZW$ 75,816,772, being 10.54 Zimbabwe Cents per unit for the period. This is a significant step in the right direction for Tigere REIT, which was only listed on the Zimbabwe Stock Exchange on November 30th, 2022.

As regulated under the Collective Investment Scheme Act, REITs must pay a minimum of 80% of their distributable income to Unit holders each financial year. This provides a reliable source of income for investors, who can expect consistent returns through dividend payments.

Tigere REIT comprises two commercial real estate assets: Highland Park Shopping Centre and Chinamano Corner. The performance of these assets has been exceptional, with strong turnovers from the retail and food-related tenants, and the portfolio is expected to reach 100% occupancy levels within the first quarter of 2023.

Brett Abrahamse from Terrace Africa Asset Management has stated that “the key characteristic of a REIT distributing regular income is now a reality in Zimbabwe.” The Tigere REIT is collecting a substantial amount of its revenues in USD, which further strengthens the value proposition to investors. The REIT has an exciting property development pipeline, including a luxury hotel and integrated office park, as well as a shopping mall at the Showgrounds in Harare.

REITs have become a popular investment vehicle globally, providing investors with the opportunity to gain exposure to real estate while enjoying consistent dividend payments and liquidity. The arrival of Tigere REIT in Zimbabwe is expected to encourage the growth of the property sector and provide funding for new and exciting infrastructure development projects.

The dividend will be payable on February 24th, 2023, to all Unit holders registered at the close of business on February 17th. The shares will be traded cum dividend on the Zimbabwe Stock Exchange until February 14th, 2023.

The declaration of Tigere REIT's maiden dividend marks a new chapter for Zimbabwe’s property sector and provides investors with an exciting new investment opportunity. With its strong performance, reliable income streams, and access to an exciting property development pipeline, Tigere REIT is poised to become a leading player in the Zimbabwean real estate market. The announcement of this dividend is a clear signal of the REIT’s commitment to delivering value to its investors and contributing to the growth of the Zimbabwean economy.