- Tigere Property Fund, a Real Estate Investment Trust (REIT), declared its first US dollar dividend, totaling US$152,000.
- This marks a major milestone for the company, which listed on the Zimbabwe Stock Exchange (ZSE) last year.
- The global REIT market size is estimated to increase by USD 333.01 billion between 2022 and 2027. The market’s growth momentum will accelerate at a CAGR of 2.8% during the forecast period.
Zimbabwe’s Real Estate Investment Trust (REIT) market has seen a significant development in recent times, with one REIT making a bold announcement regarding its dividends. Tigere REIT, known for its extensive real estate portfolio, has declared that it will be paying out its dividends in US dollars.
Tigere Property Fund, Zimbabwe’s first real estate investment trust (REIT) declared its maiden dividend of US$ 152 577 in line with its Listing Prospectus. The REIT, which was listed on the Zimbabwe Stock Exchange on November 30, 2022, will pay a dividend of US 0.021 cents per unit as well as an additional ZW$ 75,816,772 being 10.54 Zimbabwe Cents per unit for the period.
The dividend will be payable on February 24, 2023 to all Unit holders registered at the close of business on February 17. The shares will be traded cum dividend on the Zimbabwe Stock Exchange up to February 14, 2023.
The significance of this move cannot be overstated, as it provides a unique opportunity for shareholders to reap the benefits of an investment denominated in a strong and stable currency. In a country where the local currency market has its fair share of challenges, US dollar-denominated investments serve as a beacon of hope.
The US dollar dividend has been met with much excitement by shareholders and industry experts alike, who see it as a step towards a brighter future for Zimbabwe’s economy.
According to an analyst quoted in Business Weekly, “The move by Tigere REIT is not just a game-changer for the company, but for the entire real estate sector in Zimbabwe. It showcases the potential for growth and development in the country, and serves as a model for other businesses to follow.”
“We have seen exceptional turnovers from our retail and food related tenants. Performance of the portfolio was in line with expectations and our assets will reach 100% occupancy levels within Q1 of 2023. The key characteristic of a REIT distributing regular income is now a reality in Zimbabwe,” said Brett Abrahamse from Terrace Africa Asset Management.
The Tigere REIT currently comprises two commercial real estate assets, namely Highland Park Shopping Centre and Chinamano Corner. Unit holders in the Tigere REIT will also have access to an exciting property development pipeline, which comprises a luxury hotel and integrated office park as well as a shopping mall at the Showgrounds in Harare.
“The portfolio is collecting a substantial amount of its revenues in USD which further drives the value proposition to our investors. We are very excited about Tigere REIT’s prospects for 2023 and look forward to delivering on our mandate to investors,” added Abrahamse.
In recent years, REITs have emerged as a popular alternative financing option for real estate investors, providing a way for individuals to invest in real estate without having to purchase properties outright.
In simple terms, a REIT, or Real Estate Investment Trust, is a type of investment vehicle that allows people to invest in real estate without actually owning physical properties. Instead, REITs pool together money from many investors to purchase and manage income-generating properties such as apartments, hotels, shopping centers, and office buildings.
Read: Zimbabwe Stock Exchange lists first REIT this November
The idea behind a REIT is to provide a way for people to invest in real estate and benefit from the income generated by these properties, without having to worry about the responsibilities of being a landlord. When you invest in a REIT, your money is used to buy shares in the trust, which in turn buys and manages properties.
As a shareholder in a REIT, you receive a portion of the income generated by these properties in the form of dividends. This can provide a regular and stable stream of income, similar to bonds. The value of your investment in a REIT can also increase over time as the value of the properties the REIT owns increases.
The REIT market is estimated to grow at a CAGR of 2.8 per cent between 2022 and 2027. The size of the market is forecast to increase by US$ 333.01 billion. The growth of the market depends on serval factors, including an increase in global demand for warehousing and storage facilities, a growing residential sector globally, and increasing support from the government.
What is the difference between a REIT and a STOCK
A Real Estate Investment Trust (REIT) and a stock are both investment vehicles, but they are quite different in their structure and the type of returns they offer to investors. Understanding the key differences between a REIT and a stock is important for making informed investment decisions.
A REIT is a type of investment vehicle that allows people to invest in real estate without actually owning physical properties. REITs pool together money from many investors to purchase and manage income-generating properties such as apartments, hotels, shopping centers, and office buildings. As a shareholder in a REIT, you receive a portion of the income generated by these properties in the form of dividends. This can provide a regular and stable stream of income, similar to bonds. The value of your investment in a REIT can also increase over time as the value of the properties the REIT owns increases.
A stock, on the other hand, represents a piece of ownership in a company. When you purchase a stock, you become a shareholder in the company, and you are entitled to a portion of the company’s profits in the form of dividends. Stocks can provide both income and potential for growth, as the value of the company and its stock price can increase over time. Unlike a REIT, investing in a stock does not give you direct exposure to real estate, but rather to a company’s financial performance.
Another key difference between a REIT and a stock is the level of risk involved. REITs are generally considered to be less risky than stocks, as they provide a regular and stable stream of income from rental properties. Stocks, on the other hand, can be more volatile, as the value of the company and its stock price can fluctuate widely depending on various factors such as economic conditions, market trends, and company performance.