Tigere REIT reports steady performance
ROBIN PHIRI
The Tigere Real Estate Investment Trust (REIT) has reported a stable portfolio performance in its latest trading update, maintaining earnings resilience despite a marginal dip in occupancy levels and ongoing infrastructure works at its flagship developments.
Portfolio occupancy at Highland Park Phase 1 eased slightly to 98.7% during the third quarter, a movement the REIT attributed to a “nominal planned vacancy” following a tenant change.
The decline, management said, is expected to be temporary given the “robust tenant turnover pipeline” that continues to underpin the property’s performance.
At the same time, the combined income benefits from the Highland Park Phase 2 acquisition continue to bolster overall returns.
“The Phase 2 development has had a positive impact across the board, reinforcing our income streams and supporting overall yield stability,” Tigere stated.
However, the REIT acknowledged that the third quarter was not without its challenges.
Tenant turnovers remained strong despite disruption caused by the ongoing installation works for the new Highlands Precinct bridge, which led to a temporary parking deficit and some logistical strain.
Despite these headwinds, Tigere expects a seasonal recovery, buoyed by increased foot traffic and higher turnover income as the country enters the peak summer trading period.
Looking ahead, the REIT’s growth strategy is set to gather pace, with plans already underway to acquire two additional income-generating assets in the fourth quarter of this year. If approved by unitholders, the acquisitions will further diversify Tigere’s underlying portfolio and enhance yield performance.
“These target properties present an opportunity to strengthen our portfolio mix and create additional value for unitholders,” the company said.
“We believe this will position the REIT for sustainable growth in a challenging but opportunity-rich market.”
The Zimbabwe Stock Exchange-listed trust also declared a dividend for the period, consistent with its policy of delivering regular income distributions to investors.
However, the REIT Manager urged caution, advising unitholders and the investing public to remain prudent as acquisition negotiations progress.
“While our trading update and dividend declaration reflect a solid performance, the pending transaction introduces uncertainties typical of expansionary moves. Investors should therefore proceed with caution as due process unfolds,” the group stated.
