• 91% of Revenue in USD: A significant increase from 72% last year
• 100% Occupancy Rates: Both Highland Park Phase 1 and Chinamano Corner maintain full occupancy
• Debt-Free Policy: Remains debt-free, enhancing liquidity and financial stability

Harare- Tigere Property Fund has reported a notable shift in its financial landscape for the half-year ended June 30, 2024, marked by a significant increase in USD revenue collections.

According to its latest 6 months performance to June 2024, 91% of revenue was collected in U.S. dollars, a remarkable rise from 72% during the same period last year, leaving only 9% in local currency.

This shift reflects the American dollar as the currency of preference against the local currency.

Zimbabwe Gold (ZiG), Zimbabwe’s fourth currency gamble in a decade was introduced on the 5^th of April.

According to the latest RBZ’s monetary policy statement review, ZiG’s acceptance in the market has increased to over 90%, catering for essential services except for fuel and passports which are primarily paid in foreign currency.

However, the assertion proves to be wrong as a surge in US dolars means tenants and owners are preferring to pay rentals in US dollars to preserve value demonstrating confidence erosion in the country’s legal tender.

US dollar remains a currency of choice as it provides cushion against economic fluctuations and instability. The preference for USD over the local currency reflects a growing confidence among investors, who increasingly view the U.S. dollar as a more stable and reliable store of value.

Despite this positive development, the fund faced challenges, with profit after tax dropping 52% to US$1.1 million.

Total income fell by 10%, influenced by a 12% decline in rental income. The decline in rental income was attributed to various factors, including competitive pressures and changes in market dynamics.

However, occupancy rates remained robust at 100% for both Highland Park Phase 1 and Chinamano Corner, which highlights the strength of demand in a buoyant property market where supply struggles to keep pace with consumer interest.

The stability of the property market is further enhanced by the perception of land and property as safe-haven assets.

Investors are increasingly seeking to preserve their capital and hedge against inflation by investing in real estate, which is perceived to offer value preservation and generate foreign exchange earnings.

This trend has contributed to the ongoing demand for properties, which has remained strong even in challenging economic conditions.

Highland Park is poised for further growth, with plans underway to enhance revenue through additional parking allocations—a project expected to be implemented in the third quarter of 2024.

The fund anticipates closing its yield-accretive acquisition of Phase 2 during the same quarter, which will add to its property portfolio and strengthen its market position.

Tigere maintained its debt-free policy without receiving any loans during the period, leading to improved liquidity with a current ratio of 1.42x, compared to 1.40x in the previous period.

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