The Tigere Property Fund Real Estate Investment Trust (REIT) has seen its market capitalisation rise to over US$101 million, following acquisitions of Greenfields Retail Centre and Zimre Park Drive-Thru.
In October, Tigere announced the acquisitions of Greenfields Retail Centre and Zimre Park Drive-Thru for US$25,13 million.
The REIT was launched by Terrace Africa Asset Management (Pvt) Ltd in November 2022, becoming the first REIT to be listed on the Zimbabwe Stock Exchange.
“Following the transaction, Tigere REIT’s market capitalisation has increased to over US$101 million, using a 30-day VWAP [volume-weighted average price] as at the date of release of this pre-close statement. FY2025 distributable earnings are expected to breach US$2,3 million with earnings per unit expected to be within a guideline range of US¢0,1900 — US¢0,1980, representing 17% — 22% year-on-year increase, driven by yield-accretive acquisitions and strong tenant trading performance,” Terrace said.
It said the fourth quarter income growth was largely driven by Greenfields Retail Centre, which has performed above fund expectations.
Tenants, including Smokehouse, Hungry Lion, Rocomamas, Spar, Liquor Supplies, and Rollers have shown positive turnover growth against budget, contributing to higher year-end portfolio income.
Terrace said the enlarged portfolio has delivered meaningful operating leverage, with the fund expecting its operating expense ratio to reduce significantly to between 16,5% and 18,5% this year, down from 23,2% last year.
“Distributable Income yield on NAV for 2026 [on a net basis] is expected to fall within a range of 6,8% – 7,1%, with management confident of achieving the upper end of this range,” Terrace said.
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“The REIT is targeting to pay a minimum dividend of US$1 million per quarter for FY 2026.”
Terrace upgraded the current year net income yield on the net asset value guidance to 6,21% from 6,04%.
Since listing, Tigere REIT has declared 12 consecutive dividends, with the last eight fully paid in US dollars.
“Tigere REIT enters FY2026 with scale, momentum, and a clearly defined growth pipeline,” Terrace said.
This pipeline includes purchasing four properties next year.
These are Design Quarter, a flagship mixed-use asset linked to Highland Park and the new Highlands Precinct; Cardinals Corner (a retail shopping centre drawing catchment from Harare Drive and Harare East), and Kadoma Retail Phase 1 (a quick-service and convenient retail centre and fuel station on a well-located junction).
The pipeline also includes a Gweru Phase 1 property, which consists of a drive-thru, fuel and retail stores situated along the main A5 Highway.
“Management remains focused on growing net distributable income, enhancing portfolio diversification and selectively expanding the asset base through high-quality, yield-accretive investments, both locally and regionally,” Terrace said.
“To support this growth trajectory, the REIT will expand its asset base with high-quality, yield-accretive developments.”
In 2027, the fund’s pipeline will include Ruwa Zimre Park Phase 2, a retail centre to support the existing drive-thru with prime visibility to Mutare Road.
The fund will also acquire a modern retail centre with top consumer brands located within the ZITF complex in Bulawayo.
“The Tigere REIT is exploring a range of funding methods to support its ambitious growth targets,” Terrace said.
In addition, the REIT is evaluating a mix of regional assets, with a right of first refusal to purchase, subject to the assets meeting minimum yield benchmarks and structuring efficiencies.”
It said successful inclusion of these assets is expected to offer investors foreign currency exposure and geographical diversification.
