Tigere REIT records sold revenue growth in 2024
TIGERE, Zimbabwe’s first listed Real Estate Investment Trust (REIT), has witnessed commendable revenue growth for 2024 in an economy the company says is characterised by tight monetary and fiscal policies.
The REIT remains optimistic about maintaining positive performance through strategic portfolio diversification and careful tenant selection.
Company representative Mr Brett Abrahamse said: “Our revenue growth has been robust, driven primarily by the operational performance of key assets such as Highland Park Phase 1 and Chinamano Corner, which have maintained 100 percent occupancy throughout the second half of the year.
“The newly acquired Highland Park Phase 2 has also achieved full occupancy, contributing meaningfully to our revenue base,” he said.
The broader operating environment has posed significant challenges. The introduction of the ZiG on April 5, 2024, was intended to address inflation and stabilise the local currency.
But Mr Abrahamse said, “Skepticism over money supply dynamics during the ongoing Emergency Road Rehabilitation Programme (ERRP 2) led to a resurgence of the gap between official and parallel exchange rates.
“The Reserve Bank of Zimbabwe (RBZ) responded with a 42,6 percent devaluation of the ZiG on September 27, 2024, from an official rate of 14 to 24,39, which subsequently stabilised the disparity between the interbank and parallel markets, cooling inflationary pressures in the final quarter of the year.”
Against this backdrop, Tigere’s ability to sustain revenue growth underscores the resilience of its diverse portfolio.
The acquisition of Highland Park Phase 2 was a strategic move aimed at reducing the company’s historical reliance on retail properties, which previously constituted over 50 percent of the fund’s total Gross Leasable Area (GLA).
That figure now stands at 25,7 percent of GLA, reflecting a deliberate effort to diversify revenue streams.
“Our strategic focus has been to enhance revenue by diversifying our portfolio beyond retail, thereby reducing our exposure to macroeconomic risks,” Mr Abrahamse explained.
“The acquisition of Highland Park Phase 2 aligns well with this objective, while the potential acquisition of Greenfields Retail Centre in 2025 represents another step toward sustainable growth.”
Land values across Zimbabwe have continued to appreciate, impacting net rental yields across the property market.
In an environment where construction activity remains buoyant, increasing competition from other industry players, the company’s performance illustrates the importance of a diverse tenant mix.
According to the asset manager’s report, tenants with longer lease tenures and hard-currency generation capabilities have provided a cushion against the macroeconomic risks affecting the formal retail sector.
“Tigere’s strategy of prioritizing tenants with stable, hard-currency revenue streams has been instrumental in maintaining revenue growth and occupancy levels. We believe that success in new retail developments will largely depend on achieving a resilient tenant mix,” said Mr Abrahamse.
Tigere’s portfolio performance remains anchored by its flagship properties, Highland Park Phase 1 and Chinamano Corner, which have demonstrated resilience in the form of full occupancy and steady revenue generation.
Meanwhile, the newly acquired Highland Park Phase 2 has quickly reached full operational capacity, bolstering the fund’s revenue potential.
Looking ahead, Tigere retains the pre-emptive right to acquire the US$20 million Greenfields Retail Centre, a property located along Samora Machel Avenue, adjacent to the Zimbabwe Agricultural Showgrounds, which property developer Terrace Africa, completed late last year.
The transaction is slated for completion in the third quarter of 2025 once the asset reaches full occupancy.
“The acquisition of Greenfields Retail Centre will further diversify our portfolio and provide additional revenue streams. We anticipate that the asset will reach full occupancy by the third quarter 2025, allowing us to proceed with a de-risked transaction,” noted Mr Abrahamse.
Tigere’s strategic approach appears well-calibrated to withstand ongoing economic challenges. As the REIT looks to the future, its focus on diversification, solid tenant selection, and prudent portfolio management will be crucial in maintaining revenue growth in an unpredictable operating environment.
herald
