JSE-listed real estate investment trust (Reit) Emira Property Fund has reported robust results for the financial year ended March 31, declaring a cash-backed second-half dividend of 64.61c a share, taking its total dividend for the financial year to 129.01c a share, which is 4.1% higher than the prior year.

Net asset value per share increased by 1.3% over the 12-month period, mainly driven by value gains from Emira’s investment in Poland and its South African portfolio, but these were largely offset by a stronger rand against the dollar and euro.

Distributable income per share for the period increased by 3.7% year-on-year to 129.53c.

Emira CEO James Day, in a media release, attributed the strong set of results to consistent strategic execution with the goal of recycling capital into higher-yielding, value-accretive assets, driving ongoing portfolio optimisation, enhancing returns and delivering reliable long-term performance.

He noted that Emira’s solid second half was supported by a more stable domestic macroeconomy with improved business confidence and no loadshedding.

“Emira has delivered a solid set of results for the 12 months to March 31. In a period that was initially characterised by decreasing macroeconomic certainty on the back of the US tariffs and supported by strong tailwinds for the South African economy and South African property specifically, we once again end the period with heightened geopolitical risk and increased uncertainty as a result of conflict in the Middle East.

“Despite that, operational performance has remained resilient, supported mostly by improving fundamentals locally,” he said during a presentation of Emira’s results on May 28.

Emira’s loan-to-value ratio improved to 30.2% from 36.3% at the prior year-end and its interest cover ratio improved to 2.8 times.

By deploying proceeds from its disposal programme to repay debt and into interest-bearing cash deposits, as well as replacing some settled debt with lower-cost euro-denominated funding, Emira reduced its total net finance costs by 18.3%.

SOUTH AFRICA

In South Africa, Emira's well-tenanted South African direct portfolio comprised 48 properties valued at R8.9-billion. The portfolio's fair market value, adjusted for disposals, increased by 2.1% year-on-year.

The company reports that its commercial portfolio of 35 assets is balanced across urban retail (58%), office (27%) and industrial (15%), with improved performance metrics across all sectors.

Net property income grew by 3% in Emira’s commercial portfolio, but the company explains that disposals during the year contributed to an overall 13.2% decline compared with the prior year.

Commercial portfolio vacancies decreased, improving to 4.1% from 6.4% in the prior financial year. Vacancies across all sectors remained below national benchmarks, reflecting sustained tenant demand and effective leasing.

In Emira’s largely grocer-anchored neighbourhood centre portfolio, whose “crown jewel” is the dominant 91 000 m²-plus regional Wonderpark in Pretoria North, total retail vacancies held steady at 4.2%. Rental reversions, however, lingered in negative territory, declining from -1.2% to -2.9%.

Total weighted average reversions in the primarily P- and A-grade office portfolio improved significantly, from -9.3% to -0.6%. Office vacancies, however, edged up from 8.4% to 9.9%, mainly owing to a single sizeable vacancy at Menlyn Corporate Park. 

Showing robust tenant appeal and near-full occupancy, vacancies in Emira’s industrial portfolio improved to near zero (0.7%).

The portfolio predominantly comprises single-tenant light industrial and warehouse properties, as well as multitenant midi- and mini-unit industrial parks. Rental reversions in the portfolio also improved, from -9.9% to -6.6%.

Meanwhile, the residential portfolio (12%) comprises 1 970 units across 13 properties, focused on quality, value-oriented, high-demand suburban rental units.

Emira reports that the residential portfolio vacancy in South Africa held steady at the low 3.5% mark including units for sale, a favourable level compared to the Rode benchmark.

The company explains that the solid underlying demand for these units is driven by the balance of affordability and quality of life offered, with the average unit rental around R6 000 a month.

As in the commercial portfolio, the impact of bulk and individual unit sales over 12 months saw residential net property income decrease by 35.2%.

CAPITAL RECYCLING

Meanwhile, during the year, Emira notes that it disposed of seven noncore commercial properties for R479-million. Its programme of residential sales progressed, with a further 1 375 units transferring, generating gross proceeds of R810.8-million. 

Emira allocated R128.6-million to targeted upgrades across its portfolio, enhancing asset performance while protecting and prolonging asset value.

With the exception of R20.7-million of solar PV projects and electrical upgrades in the residential portfolio, Emira explains that most of the capital expenditure of R107.9-million prioritised expansion projects in the commercial portfolio to better service tenant needs as well as implement operational and carbon reduction improvements.

Emira says its equity interest in SA Corporate was subject to various transactions, both to deploy liquidity from its disposal programme and realise value at favourable pricing, closing the period at 6.9% of SA Corporate ordinary shares in issue, valued at R623.6-million.

The company notes that SA Corporate contributed R43.8-million to the year's distributable income.

Additionally, after year-end, Emira acquired a 23.5% shareholding in JSE-listed Reit Octodec Investments. During the presentation, Day explained that Emira was looking to deploy capital into further value-accretive opportunities, such as Octodec.

"Both investments align with Emira's strategy of deploying capital into meaningful, value-accretive opportunities, including acquiring stakes in quality undervalued listed and unlisted assets,” Day noted in a media release.

US, POLAND

Meanwhile, Emira's US portfolio closed the year with six investments totalling R1.3-billion, or $77.8-million.

Disposal activity in this portfolio continued, as Emira and its co-investors actively managed the portfolio by exiting five equity holdings during the year at a 0.9% premium to appraised value.

Post-period, on May 11, the company notes that a further asset was disposed, reducing the US exposure to five equity investments.

Strong leasing activity and consistent tenant demand improved vacancy levels to 2.3%, down from 4.6%. Rental reversions remained flat at 0.6%.

The company says the remaining portfolio held its value, supported by sound property fundamentals and a high-quality tenant base.

The US equity investments contributed R145.9-million to Emira's full-year distributable income, down from the prior year as a result of the disposals and a stronger rand to the US dollar.

Emira notes that it has applied a 95% payout ratio to distributable income from its US investments.

Moreover, in Poland, Emira notes that this is the first time that it held its full 45% stake in Luxembourg-headquartered Polish property company DL Invest for an entire 12-month period, which earned Emira R146.2-million for the year’s distributable income.

The company explains that DL Invest's portfolio has grown to 42 income-generating properties and was valued at €808.7-million at December 31, 2025, comprising 72% industrial and logistics, 18% mixed-use/office and 10% retail parks.

Total vacancy was maintained at 3.2% with a stable weighted average lease expiry of 5.1 years. Its development pipeline, with a combined carrying value of €215.5-million, continues to provide a platform for future growth.

Emira provided its executive directors’ key performance indicators for distributable earnings to reach 133.53c a share for the 2027 financial year.

“We are well positioned for growth into 2027,” said Day during the presentation.