Tigere REIT soars despite Zimbabwe’s economic turb...

Tigere REIT soars despite Zimbabwe’s economic turbulence

Nyashadzashe Ndoro

Tigere Real Estate Investment Trust’s latest report highlights the challenges and opportunities faced by the company in Zimbabwe’s economic climate.

The company released its financial statements for the year ended December 31, 2023.

According to the Asset Manager’s Report, the first half of 2023 was marked by inflation and a weakening local currency. The Tigere REIT, however, saw an increase in USD receipts as the year progressed due to tightened local currency liquidity. The report forecasts a difficult operating environment in the future due to exchange rate fluctuations, new monetary policies, and a decrease in gold deliveries.

Despite the economic challenges, Tigere REIT benefited from a positive trend in the property market. The report states that there has been a rise in suburban property values due to businesses relocating from the CBD. Additionally, real estate has become an attractive hedge against inflation, leading to increased investor interest.

The Trust held investment property valued at US$22 360 000 as at December 31, 2023.

The report noted that the Tigere REIT’s portfolio performed well with full occupancy achieved in Highland Park Phase 1 and Chinamano Corner for the latter half of 2023. Highland Park Phase 2, which opened in December 2023, was also well-received with high foot traffic and tenant turnover. The report highlights a significant waiting list for space in Phase 2, where Tigere REIT holds a pre-emptive right to acquire.

The Independent Auditor’s Report confirms that the financial statements presented Tigere REIT’s financial performance fairly. The report also identified the valuation of investment property, a significant asset for the Trust, as a key audit matter. The auditors assured that the valuation methods used by Tigere REIT were appropriate and adhered to International Financial Reporting Standards.

“In evaluating the appropriateness of the valuation and the compliance to IFRS13 we employed various audit procedures including the following:

“Evaluated Trust’s independent external valuer’s competence and capabilities as evidenced by licence with the professional body.

“Reviewed the methods, assumptions and inputs used by the external valuers.

“Reviewed the financial statements for adequate disclosures of the assumptions, judgments and various inputs to the valuation

“We are satisfied that the Trust’s investment property valuation is adequate and appropriate,” the auditors noted.

Overall, the Tigere REIT financial statements paint a picture of a company navigating a complex economic environment while experiencing positive performance within its property portfolio.