Emira says it remains on track to meet its full-year guidance, with distributable income per share expected to rise about 2.3% as portfolio vacancies stay below benchmark levels.
The group is targeting 127.78c per share, it said in a 10-month operational update to end-January.
Portfolio vacancies edged up to 4.5% by gross lettable area at the end of the period, from 3.8% in September, largely due to the South African Local Government Association (Salga) vacating 3,564m² at Menlyn Corporate Park in October. Despite the increase, vacancies remain acceptable.
“Emira’s vacancy rates across all relevant sectors remain below current market benchmarks. Tenant retention remains a key focus, with 87.3% (by gross rental) of leases that matured during the period retained. Total weighted average rent reversions for the period improved to minus 3.7% [from minus 4.7% previously],” the group said.
Retail vacancies improved, with solid tenant retention and stable rent reversions. The group’s retail property portfolio comprises largely grocer-anchored neighbourhood and community shopping centres.
Industrial vacancies remained the lowest in the portfolio, rising slightly, with rent reversions improving to minus 8%, from minus 8.8% previously. During the period, Emira transferred four properties out of its portfolio, with three more disposed of after January 31, bringing in total gross proceeds of R479m.
The group’s US portfolio disposals generated gross proceeds of $46m (R782m), with two recent sales after the end of January — Wheatland Towne Center and Stony Creek Marketplace — bringing in $18m.
The group also held a stake in SA Corporate and later sold part of it, generating R188.8m in line with its strategy of realising assets near net asset value.
The group, which owns Woodlands Square in Tampa, Florida, holds R740.2m in cash and R1.43bn in unused debt facilities, a position boosted by the local and US disposals. Its loan-to-value ratio improved to 34.1% and has since fallen further following additional disposals.
During the period, the group also participated in the restructuring of Inani, a South African commercial property company, retaining its 20% stake in a joint venture with two new partners.
“Since taking over asset management of Inani in December 2024, we have made good progress stabilising its eight remaining assets through capital expenditure, leasing and asset sales to reduce senior debt,” Emira said.
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