Listed real estate investment trust (REIT) Tigere has expressed concern over growing uncertainty surrounding a possible move to a mono-currency system, warning that the proposed policy shift poses a threat to funding streams within the sector.
This follows recent comments by Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu suggesting that Zimbabwe may adopt exclusive use of the local currency (ZiG) by 2030.
He said that steps are being taken to build foreign currency reserves and maintain macroeconomic stability ahead of the anticipated transition.
In its financial results for the year ended, Tigere noted that the mere signalling of such a policy has already begun to erode confidence in the real estate sector. The company said:
Given continued uncertainty surrounding the 2030 migration to mono-currency, the real estate sector remains predominantly equity-financed.
Despite these challenges, Tigere reported a strong performance. Net Property Income rose to US$1,205,846, an increase of 56.6% from the previous year, largely attributed to the inclusion of Highland Park Phase 2 in FY24, which continues to show growth in both income and customer traffic.
The fund’s profitability remained resilient despite heightened competition and a volatile currency environment. Total Dividend Per Unit (DPU) increased by 44.8% year-on-year to US0.0951 cents, while Earnings Per Unit (EPU) rose by 25.8% to US0.0925 cents.
This performance was achieved despite a 48.8% increase in the number of units in issue, supported by an 87.2% year-on-year rise in comprehensive income to US$990,155.
Collection rates also improved to 87.3% in HY25, up from 81.2% in the corresponding period, following the introduction of stricter rental collection policies.
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