Tigere REIT reports steady growth in Q1
In its first-quarter trading update, property firm Tigere REIT, reported a resilient performance, with the real estate market demonstrating significant stability despite prevailing currency headwinds.
The REIT attributed this stability to its forex-based income generating capability, which has insulated the sector from local currency fluctuations.
The demand for high-quality retail infrastructure remains strong, though the supply of such stock is constrained by unattractive financing options.
Nonetheless, the property market has seen a marked increase in the development of clusters, student accommodation facilities, corporate housing and warehouse spaces.
The expansion of road networks and infrastructure works are expected to open up new opportunities by enhancing connectivity and reducing travel distances, potentially boosting the attractiveness of new developments.
Tigere REIT’s property portfolio faced some challenges with tenant receipts in Q1 due to the anticipated introduction of a new currency.
Despite this, the REIT has remained committed to its growth strategy, undertaking strategic capital expenditure projects aimed at enhancing the long-term net income and improving the tenant mix within its portfolio.
Highland Park, a key asset in the REIT’s portfolio, continued to perform exceptionally well, with Phase 1 benefitting from record customer visits and the recent opening of Phase 2 is expected to drive further growth.
Maintaining its commitment to quarterly distributions, Tigere REIT declared an interim dividend of US$225,418 for the quarter ended March 31, 2024, equivalent to 0.0313 United States cents per unit.
Commenting on the REIT’s performance, Tigere REIT stated; “Our forex-based revenue model has been pivotal in shielding us from the adverse effects of local currency volatility. We remain focused on our strategic growth initiatives, which include significant capital expenditures to enhance our property portfolio and attract a diverse mix of tenants.
“The ongoing success of Highland Park, especially with the opening of its second phase, underscores our commitment to delivering high-quality retail infrastructure and maximising returns for our investors.”
Looking ahead, Tigere REIT is poised to capitalise on the expanding infrastructure network and the ongoing high demand for quality property developments.
The strategic investments and the strong performance of key assets like Highland Park position the REIT well for sustained growth, despite the economic challenges posed by currency fluctuations.
Investors can remain optimistic about the REIT’s ability to deliver stable and attractive returns, backed by a solid strategy and robust market fundamentals.-ebusinesswekly
