• Completed yield-accretive acquisitions of Greenfields Retail Centre  and Zimre Park Drive-Thru in Q4 2025, boosting investment property value 75.6%  and NAV to US$59.49 million
  • Net property income rose 61% to US$2.73 million on full-year Highland Park Phase 2 inclusion, lease escalations, and new assets; operating expenses ratio fell to 16.5% from 23.2%, lifting distributable income margin to 87.4%
  • Total comprehensive income nearly doubled to US$2.68 million; DIPU up 23.2% to US0.197 cents, DPU up 28.2% to US0.228 cents; Q4 dividend declared at US$847,250 with 103.2% payout ratio

 

               

Harare- In a year of resilient growth for Zimbabwe's nascent REIT sector, Tigere Real Estate Investment Trust emerged as a standout performer, completing two strategic retail acquisitions in Q4 2025 that propelled its investment property value up 75.6% to US$58.41 million and drove total comprehensive income to US$2.68 million, nearly double the US$1.35 million recorded in 2024.

The additions of Greenfields Retail Centre acquired at a 9.2% net initial yield and Zimre Park Drive-Thru (7.7% yield) not only scaled the portfolio but immediately enhanced earnings, with Greenfields exceeding sales expectations in its debut months through strong tenant performances from outlets like Smokehouse and Hungry Lion.

This acquisitive momentum, aligned with Tigere's pre-emptive rights strategy, underlined the REIT's agility in a stabilizing Zimbabwean economy where the Reserve Bank's hawkish policies curbed local currency depreciation to just 0.6% and narrowed parallel-interbank premiums, fostering a conducive environment for USD-denominated property investments.

The broader property market in Zimbabwe expanded by about 5% in 2025, fuelled by urbanisation, diasporan inflows, infrastructure developments, and foreign currency surges from mining, agriculture, and remittances, which stimulated demand across suburban retail and hospitality segments.

Tigere capitalized on this, maintaining a 97% average occupancy rate by year-end, down slightly from 100% due to value-adding tenant replacements, while achieving a 61% rise in net property income to US$2.73 million. Key drivers included the full-year contribution from Highland Park Phase 2, lease escalations, and positive rental reversions at Highland Park Phase 1 and Chinamano Corner.

Operational efficiencies shone through, with the expenses ratio falling to 16.5% from 23.2%, boosting the distributable income margin to 87.4%. Collection rates improved to 97.3%, reducing debtors by 61.6% to US$52,014, and the debt-free balance sheet supported robust cash flows from operations at US$2.65 million.

Comparatively, Tigere's performance outpaced the sector's overall trajectory, where Zimbabwe's REIT market, comprising just two listed entities on the ZSE (Tigere and Revitus Property Opportunities REIT) until mid-year additions saw market capitalization surge 160.74% to ZWG 4.25 billion by December 2025, reflecting strong investor appetite despite a 8.87% dip in traded value to ZWG 194.68 million.

Revitus, focused on property opportunities, contributed to this cap growth but lacked Tigere's retail-specific momentum, with Tigere's acquisitions enabling superior income per unit metrics: distributable income per unit rose 23.2% to US0.197 cents, and dividend per unit climbed 28.2% to US0.228 cents.

On the VFEX, the newer Eagle Real Estate Investment Trust (listed in Q2 2025) targeted development in tourism and hospitality, achieving initial occupancy projections but trailing Tigere's established 97% rate and proven USD dividend consistency.

Upcoming listings like Pfuma Fund REIT (set for February 2026) and potential Seatrite Five Trust REIT aim for similar USD-focused payouts (Pfuma targeting 80%+ of net income quarterly), but Tigere's early-mover advantage and 24% FFO per unit growth to US0.1972 cents position it as a benchmark for yield and stability.

Fair value adjustments added US$366,000, primarily from Highland Park and Chinamano escalations, lifting NAV per unit 1.64% to US3.23 cents. Distributable income to weighted NAV improved to 6.2% (from 5.1%), and net income to weighted NAV rose to 7.2% (from 6.2%), benefiting from high-yield acquisitions and tenant resilience.

The Q4 dividend declaration of US$847,250 (US0.04602 cents per unit) marked a 103.2% payout ratio, drawing on retained earnings amid minimal capex needs, though future asset maturation may increase maintenance demands.

Looking forward, Tigere plans Highland Park redevelopments in 2026 to enhance tenant mix and revenue, alongside potential acquisitions from its pipeline (Kadoma, Gweru, Ruwa Phase 2, Bulawayo). While suburban retail thrives, CBD vacancies persist due to informal trade, and hospitality occupancies softened amid supply-demand imbalances.

Compared to regional peers like South Africa's Growthpoint Properties (which reported modest 3-4% distribution growth in 2025 amid economic headwinds), Tigere's 28% DPU increase highlights Zimbabwe's unique USD-hedged appeal, though illicit capital inflows noted in sector reports pose regulatory risks.

With an unmodified audit from PKF (key matter: investment properties) and no post-balance sheet events, Tigere REIT solidifies its role as Zimbabwe's REIT pioneer, delivering superior returns.

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