- Tigere REIT nears completion of Highland Park Phase 2
- Preemptive right secures Tigere REIT's investment in real estate
- Strong tenant demand fuels Tigere REIT's net property income
Harare- Tigere, a distinguished ZSE-listed real estate investment trust, is poised to complete its Highland Park Phase 2 undertaking in Q4 2023 indicating another noteworthy milestone in the company's property markets.
The company has revealed that it has already secured a pre-emptive right to acquire Phase 2, which serves as a testament to its commitment to strategic investments in the real estate sector.
The pre-emptive right bodes well for the company as its occupancy rate reached 100% during the six months to 30 June 2023 due to an upsurge in demand for space of the company's assets.
The demand for properties has been on the rise, primarily due to a burgeoning population, as well as outdated stock, thereby providing substantial growth opportunities. Tenant demand across various sub-sectors has remained robust due to a paucity of quality stock.
During the review period, the Highland Park and Chinamano Corner properties experienced heightened customer traffic, with new tenants, including restaurants, opening for trade, thereby reinforcing the strong performance of the two assets.
The company stated that the surrounding areas have continued to benefit from having high-quality retail shopping experiences.
As a result of the demand for rental accommodation, rental income surged to US$790,523, while utilities income amounted to US$157,373, leading to a significant increase in net property income to US$861,949.
Total income amounted to US$862,636, while losses resulting from exchange movements were US$50,796.
The REIT declared a Q2 interim dividend of US$ 255,202, comprising US$ 218,087 (being 0.03 United States cents per unit) and an additional ZWL 167,651,585. (being 23.30 Zimbabwe cents per unit) in respect of the quarter ended 30 June 2023.
The future of REITS appear to be bright, with a growing number of investors turning to this investment vehicle as a means of gaining exposure to the real estate market. REITs have become increasingly popular due to their ability to provide investors with a diversified portfolio of income-producing real estate assets, along with the benefits of liquidity, transparency, and tax efficiency.
One of the factors that is expected to drive the growth of REITs in the future is the increasing demand for real estate assets, particularly in emerging markets where rapid urbanisation is fuelling demand for housing, commercial, and infrastructure assets.
Additionally, the rise of e-commerce and the changing nature of work are leading to new opportunities for REITs, as businesses seek out modern, flexible spaces that can accommodate their evolving needs.
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