Emira Property Fund: diversification drives 3.2% increase in final dividend

Emira Property Fund declared a 3.2% higher cash-backed final dividend of 64.40 cents per share for the six months to September 3 due to steady outperformance of the South African assets and a robust performance from the US portfolio.

The South African Real Estate Investment Trust holds direct retail, industrial, office and residential property in South Africa and recently acquired a stake in REIT SA Corporate Real Estate. Internationally, it holds between 45% and 49% in 10 shopping centres with US partner The Rainier Group. In Poland, Emira has a 45% stake in DL Invest, a Luxembourg-based developer and investor in industrial and logistics centres, offices, and retail parks across Poland.

Net asset value per share increased 1.4% over the six-months. James Day, CEO, said the South African assets were supported by a stable and gradually improving environment, driven by steady interest rates, reduced load shedding, and moderate inflation. Additionally, Emira’s strong entry into the Polish real estate market was yielding returns.

“Our diversified portfolio of direct and indirect property investments supports resilient returns across market cycles. Emira continues to be well capitalised with a prudently managed financial position, and our capital recycling strategy continues to strengthen the balance sheet,” Day said.

The loan-to-value ratio improved to 35.6% from 36.3%. In October, GCR reaffirmed Emira’s long-term and short-term credit ratings of A(ZA) and A1(ZA) respectively, with a stable outlook, reflecting a diversified funder base and trusted funding relationships.

Emira’s South African direct portfolio comprises 56 properties, valued at R9.3bn. The portfolio fair market value, adjusted for disposals, increased 1.2%. The 41 commercial assets, balanced across urban retail (50%), office (23%), and industrial (14%), were driven by improved performance across all sectors.

The residential portfolio (13%) comprises 2 203 units across 15 properties owned by Transcend Residential Property Fund.

“Commercial portfolio valuations were positively influenced by improved sentiment in the South African market and more resilient underlying fundamentals,” said Day.

Commercial vacancies decreased to 3.8% from 6.4% over the six months, mainly due to a single industrial tenant reoccupying its space. Vacancies in all sectors remained below national sector benchmarks, according to Day.

Office vacancies in the primarily P- and A-grade portfolios continued to improve, closing at 8%, down from 8.4%. Retail vacancies were low, although slightly up at 4.8% from 4.2%, while in the industrial portfolio, vacancies reduced to 0.4% from 7.9%. Residential occupancies were higher at 98.3%, excluding units for sale,

Emira’s capital recycling strategy saw the disposal of a non-core industrial property and 1 144 residential units for R746.3m. A further R405.7m of properties were under sale agreements when the period closed.

Deploying liquidity from the disposal programme, Emira acquired a 6.4% equity interest in SA Corporate for R497.1m, which at September 30, 2025, was valued at R523.7m based on the share’s closing spot rate. Emira’s equity stake in SA Corporate contributed R13m to the period’s distributable income.

Emira has since invested a further R187.9m in SA Corporate, taking its equity interest to 8.7%.

International investments comprise 37% of Emira’s portfolio, by value, with 14% in the US and 23% in Poland.

The US portfolio opened the period with 11 assets valued at R2.7bn. After the sale of University Town Centre to a co-investor, the portfolio closed the period with 10 investments totalling R2.2bn. Moore Plaza and Dawson Marketplace were under contracts for sale. Emira’s US equity investments contributed R89.8m to half-year distributable income.

In August 2024, Emira invested in DL Invest and it held its 45% stake in DL Invest for the entire period. Its portfolio of 39 properties comprise 67% industrial and logistics, 22% mixed-use/office, and 11% retail parks. It maintained a total vacancy of 3%. Emira earned R74.9m from DL Invest for the period.

“We will continue to direct recycled capital towards meaningful, value-accretive opportunities to grow value for all shareholders,” said Day.

BUSINESS REPORT