Tigere Property Fund Sees Stability in Property Sector Despite Challenging Market Conditions

Strategic Insights -

Tigere Property Fund, a real estate investment trust listed on the Zimbabwe Stock Exchange, has reported stability in property values across all sub-segments, with demand outweighing supply in the sector. According to the company's half-year financial statements, occupancy rates remained at 100% at its Highland Park Phase One and Chinamano Corner properties in Harare, with tenants adjusting swiftly to the new currency environment. The company's managing director, Brett Abrahamse, attributes the stability to investors viewing land and property as safe-haven assets due to their value-preserving and forex-earning characteristics.

Key Takeaways:

  • Tigere Property Fund's occupancy rates remained at 100% at Highland Park Phase One and Chinamano Corner, with all tenants adjusting to the new currency environment.
  • The property market saw demand outweighing supply, resulting in stability in values across all sub-segments.
  • Investors view land and property as safe-haven assets due to their value-preserving and forex-earning characteristics.
  • Tigere Real Estate Investment Trust declared a dividend of US$247,090 for the second quarter ended June 30, 2024.
  • The company's net property income for the first half of 2024 was US$769,885, with approximately 91% of revenue collections denominated in US dollars.
  • Highland Park's main anchor tenant experienced a difficult trading period, but showed recovery in trade from May 2024 onwards.
  • Tigere Property Fund is pursuing additional parking allocation at Highland Park, which is expected to contribute to revenue growth.

Statistics:

  • 100% occupancy rates at Highland Park Phase One and Chinamano Corner.
  • US$769,885 net property income for the first half of 2024.
  • 91% of revenue collections denominated in US dollars, up from 72% during the 2023 first half.
  • US$247,090 declared dividend for the second quarter ended June 30, 2024.
  • 0.03435 US cents per unit dividend declared for the second quarter.

Sources:

  • Statement accompanying Tigere's half-year financial statements for the period ended June 30, 2024.
  • Tigere Property Fund's half-year financial statements for the period ended June 30, 2024.
  • Zimbabwe Stock Exchange listings.