Tigere REIT delivers stellar performance
CLOUDINE MATOLA
Tigere Real Estate Investment Trust (REIT) delivered a robust financial performance for the year ended December 31, 2025, defying rising competition within the retail property segment, Business Times can report.
Presenting the fund’s 2025 financial results, Brett Abrahamse, managing director of Terence Africa, said the REIT met its earnings expectations in line with guidance issued in its December 16, 2025 Pre-Close Statement.
“The Fund posted a strong set of results over the period under review despite rising competition within the retail segment, culminating in firm alignment with earnings guidelines in the Pre-Close Statement published on the 16th of December 2025,” Abrahamse said.
Net property income surged 62% to US$2.7m, up from US$1.7m in 2024. The strong growth was driven by the inclusion of Greenfields and Zimre Park Drive Thru in the latter part of the fourth quarter, the first full 12-month contribution from Highland Park Phase Two, in-force lease escalations, and positive rental reversions following renewals at Highland Park Phase One and Chinamano Corner.
Profitability per unit also strengthened during the period under review. Distributable income per unit (DIPU) rose 23.2% to US0.197 cents, while dividend per unit (DPU) climbed 28.2% to US0.228 cents, translating into higher distributions for unitholders.
The REIT’s cost-efficiency drive further bolstered performance. The operating expenses ratio declined sharply to 16.5% from 23.2% in the prior year, pushing the distributable income margin up to 87.4% from 79.2%.
“The Fund maintained its cost and scale efficiency momentum, as evidenced by an impressive decline in the Operating Expenses Ratio to 16.5% against a prior year outturn of 23.2%. The aforesaid scale economies paved the way for a notable year-on-year increase in the distributable income margin to 87.4% from 79.2% in the prior year. Net property income margin (net of recoveries) for the portfolio declined to 73.9% compared to 75.8% in FY24, but we expect this to improve following full optimisation of newly acquired assets,” Abrahamse said.
Operationally, collection efficiency improved significantly. Debtors fell 61.6% to US$52,014, resulting in a collection rate of 97.3%, compared to 91.3% in FY24 — underscoring stronger tenant performance and tighter receivables management.
The balance sheet remained solid, with no new debt added to the capital structure during the year. Investment property values expanded 75.6%, largely reflecting yield-accretive acquisitions completed in the fourth quarter.
Part of the growth was attributable to fair value adjustments at Highland Park and Chinamano Corner, where escalations and positive rental reversions supported asset revaluations. Consequently, net asset value (NAV) per unit edged up 1.64% to US3.23 cents.
Performance ratios also improved. Distributable income to weighted NAV rose to 6.2% from 5.1% in FY24, while net income to weighted NAV increased to 7.2% from 6.2%. Management attributed this to resilient tenant performance and the acquisition of additional assets at attractive net initial yields — Greenfields at 9.2% and Zimre at 7.7%.
Looking ahead, Tigere is positioning for further growth in 2026. The REIT expects to finalise the acquisition of four yield-accretive commercial properties in the coming financial year, leveraging retained pre-emptive rights to secure the assets upon completion.
“Per the published Pre-Close Statement, we expected to complete the acquisition of four yield-accretive commercial real estate assets in the coming financial year, in accordance with retained pre-emptive rights to acquire these properties on completion,” the REIT said.
With a strengthened balance sheet, rising distributions, and an expanding portfolio, Tigere enters 2026 on firm footing — signalling continued momentum in Zimbabwe’s evolving real estate investment landscape.
