Tigere REIT rides high on robust property market, announces Q2 dividend

Tigere Real Estate Investment Trust (REIT) has maintained a resilient performance in the first half of 2024, driven by a buoyant property market and strategic management.

The REIT’s asset manager, Brett Abrahamse, emphasised the sector’s strength, noting, “The property market remained buoyant in the first half of the year with demand outweighing supply, resulting in stability in values across all sub-segments.”

This positive market sentiment has reinforced the perception of land and property as safe-haven assets, particularly for investors seeking value preservation and forex earnings.

The REIT’s property portfolio also showcased impressive results, with both Highland Park Phase 1 and Chinamano Corner achieving a 100 percent occupancy rate. Tenants at these locations have swiftly adjusted to the new currency environment, ensuring stable revenue streams.

Abrahamse highlighted future growth prospects, stating, “Highland Park should further grow its revenue with the provision of additional parking allocation, a project which is being actively pursued for implementation during Q3 of 2024.”

Additionally, Tigere REIT is on track to finalise its yield-accretive acquisition of Highland Park Phase 2 by the third quarter of the financial year.

Financially, Tigere REIT has delivered robust results, with net property income for the period standing at US$769 885. An impressive 91 percent of revenue collections were denominated in USD, up from 72 percent in the first half of 2023.

However, challenges were noted, particularly with Highland Park’s main anchor tenant facing difficulties due to pricing dynamics, which negatively impacted turnover receipts.

Abrahamse, however, pointed out a silver lining, “We have noticed a recovery in trade from May 2024 onwards, which we expect to continue.”

The value of the investment property portfolio rose slightly by 0,1 percent to US$22,38 million, reflecting enhancement works at Highland Park Phase 1.

Meanwhile, Tigere REIT continued its debt-free policy, with no loans received during the period, and an improved current ratio of 1,42 times, indicative of strong liquidity and supplier management.

In line with its commitment to unitholders, Tigere REIT declared an interim dividend of US$247 090, equivalent to 0.03435 United States cents per unit, for the quarter ended June 30, 2024.-ebsinessweekl