Emira Property Fund reported a steady decline in vacancy rates across its SA portfolio driven by strong leasing activity and targeted asset upgrades that bolstered tenant retention and demand.
Vacancies fell across all commercial sectors, with overall rates dropping from 4.1% to 3.6%. Office vacancies were down to 8.4%, retail was steady at 4.2% and industrial tightened to 0.5%. Residential occupancy remained strong at 97.2%, backed by solid demand and steady rental growth, the group said in its results for the year to end-March.
The Reit restructured the SA portfolio, selling R2.8bn in noncore assets and securing contracts worth R628.3m. Despite economic challenges and slowing rental growth, it noted early improvements due to reduced load-shedding and increased political stability as drivers of stronger medium-term returns.
The boost in occupancy contributed to a 4.9% rise in distributable income per share (DIPS) for the year, with a final cash dividend of 61.5c per share declared, bringing total dividends for the year to 123.89c — up 5.9% compared to the previous year.
The Hyde Park Lane owner’s directly held portfolio revenue fell 8.2% to R1.73bn, but headline earnings per share soared 381% to 487.5c. Net asset value per share rose 20.9% to 2,067.3c.
Offshore, Emira, along with its co-investors, sold San Antonio Crossing in the US at an 8.87% premium to book value, following the asset’s strong performance. The sale comes as Emira’s US retail portfolio continues to benefit from the sector’s resilience, closing the financial year with 11 investments valued at $145.4m (R2.7bn).
US vacancies rose to 4.6% from 3.6% the previous year, with the average lease expiry shortening to 4.2 years. In Europe, Emira increased its stake in Polish logistics group DL Invest to 45%. The investment offers a 7.2% annual cash yield, linked to European inflation.
Emira said it looked forward to sustaining and growing value for investors through disciplined capital recycling and focused execution. The group appointed nonexecutive director James Day as CEO from July.
Day joined the Emira board in October 2023 and has an extensive background in the international and local property sector, including expertise in financing, strategy and transactions.
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