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Unaudited financial results for six months ended 31 December 2012 and income distribution declaration
EMIRA PROPERTY FUND
(A property fund created under the Emira Property Scheme, registered in terms of the Collective Investment Schemes Control Act)
Share code: EMI ISIN: ZAE000050712 (Emira or the Fund)
Unaudited financial results for six months ended 31 December 2012 and income distribution declaration
Distribution 55,69 cents per PI
Growth in distributions +3,5%
Distributable income R276,9 million
Net asset value rose by 4,4% to 1 249 cents per PI
Vacancies reduced from 10,2% to 7,8%
Commentary
The board of directors of Strategic Real Estate Managers (Pty) Ltd (STREM) is pleased to announce a distribution of 55,69 cents per Emira participatory interest (PI) for the
six months to 31 December 2012. This is an increase of 3,5% on the previous comparable period and represents a total return of 18,9% comprising a capital return of 14,4% and
income return of 4,5%, based on the distributions actually paid out during the period under review. The percentage of weighted average PIs in issue that traded in the six-month period
equated to 22%.
Vacancies and tenant renewals: Vacancies decreased from 10,2% at June 2012, to 7,8% by December 2012, due to substantial declines in office and retail vacancies, which included
the letting of 5 200 m² at Podium at Menlyn, while the sale of certain non-core buildings also assisted in this regard. On an adjusted basis (excluding properties under
refurbishment or redevelopment), vacancies declined from 9,5% to 7,4 %.
Major new leases concluded include: the letting of 20 Anvil Road to a single tenant of 12 248 m² for seven years, the successful conclusion of a lease for 4 094 m² to SARS for
five years at Waterkloof House, and the installation of an engineering firm on a 5 year lease for 3 805 m² at 96 Loper Road, Aeroport. During the period the Fund also managed to
renew its largest tenant by GLA, RTT Group, which occupies a total of
59 594 m², for a period of approximately 5,5 years from January 2013.
Disposals: The strategy to dispose of non-core buildings continued during the period under review. Three properties totalling R85,9 million which had been sold at 30 June 2012
but not yet transferred Mutual Mews, 33 Heerengracht and Midrand Business Park, were transferred out of Emira during the period. A further three properties Montana Value
Centre, Worldwear Fashion Mall and Fleetway House, totalling R117,6 million had been unconditionally sold at 31 December 2012 but had not yet been transferred. Ten non-core properties
remain on the disposal list, with a value of R339,2 million.
Acquisitions: As was reported previously, the Fund acquired a new 13 782 m² A-grade office development from Eris Property Group on the corner of Corobay and Aramist Avenues in
Menlyn, Pretoria, which was substantially complete at 30 June 2012, for R311,5 million. The building is 70% let to Worley Parsons for 10 years, has a one year gross rental warranty
on the balance of the vacant space from the developer and is expected to yield 9,0% in the first year.
Refurbishments and extensions: Several projects totalling approximately R582,9 million are underway, the most significant of which include (i) a major upgrade and extension to
Wonderpark Shopping Centre, where the centre is being enlarged from 63 000 m² to 90 000 m² to accommodate existing national tenants such as Game, Woolworths, Jet and Edgars and the
introduction of new anchor tenants such as Checkers, Dis-Chem, Stuttafords, Hi Fi Corp, PQ Clothing, Cotton On and The Hub (R513 million), (ii) the upgrading at Hyde Park Lane
(R21,3 million), (iii) the replacement of lifts and the refurbishment of Braamfontein Centre (R16,8 million) and (iv) the refurbishment of East Coast Radio House (R10,0 million). The
extension of Woolworths at Boskruin Shopping Centre (R9,5 million) was completed during the period.
Repurchases of participatory interests: The board previously approved the implementation of a PI repurchase programme which was confirmed by PI holders at the AGM in
November 2012. In terms of the programme a portion of the proceeds from the sale of the properties can be used to repurchase PIs in the open market which would then be cancelled. In
September 2012, 3,56 million PIs were repurchased in the open market at a cost of R14,33 per PI. By 31 December 2012, 10,7 million PIs had been repurchased in the open market at a
cost of R137,6 million, an average of R12,85 per PI, which would have had a current market value of R158,1 million.
Gearing: In order to take advantage of the lower interest rates available in the debt capital market, Emira issued R400 million of three-month unsecured commercial paper in
August 2012. The proceeds raised were used to partly repay a portion of the R650 million Emira commercial mortgage backed securitisation (CMBS) which was due for repayment in March
2013. The commercial paper was successfully rolled-over in November 2012 at an all-in-rate of 5,385% and is due in February 2013.
Furthermore in November 2012 Emira placed 1 year unsecured commercial paper for R450 million at an all- in- rate of 5,825%. R250 million of the proceeds were used to repay the
balance of the Emira CMBS and the balance will be used to fund the capital expenditure noted above.
In December 2012, the Fund restructured its debt swap profile by extending and cancelling swap contracts that were at unfavourable rates and taking out new interest-rate swap
agreements at lower rates. After taking into account the funding costs in respect of the cancellation fees paid of R28,7 million, there is an estimated benefit to the Fund of R4,5
million per annum. The cancellation fees paid will not affect distributions.
Growthpoint Australia Limited (GOZ): In place of the cash distribution for the six months to 31 December 2012, Emira has elected to receive GOZ stapled securities at a price
of AUD 2,18, in terms of GOZs distribution reinvestment plan. It is estimated that Emira will receive an additional 943 242 new GOZ stapled securities, which is subject to
finalisation on the date of issue of the securities. The price as at Wednesday 13 February 2013, was AUD 2,40.
Property management: During the period, it was decided to put the Funds property management contract out to tender. Three property managers, including the current property
manager Eris Property Group (Eris) - were requested to submit tenders and after considering the submissions, it was decided to transfer the management of the Funds retail
properties (excluding Wonderpark Shopping Centre) to Broll Property Group, with effect from 1 January 2013. This equates to 26% of the portfolio by GLA and 47% by number of tenants. The
management of the remaining properties of the Fund remains with Eris.
Results
The improved global economic outlook, continued local growth, significant leasing progress made during the period and an improved operational performance, has resulted in the
Fund achieving an increase in distributable income.
Excluding the straight-lining adjustments in respect of future rental escalations, revenue rose by 4,7% over the comparable period . This was positively impacted by acquisitions
and organic growth from the existing portfolio and increased recoveries of municipal expenses, offset by rental reversions on new leases and renewals and the disposal of properties
as noted above.
Property expenses declined by 0,3% over the previous comparable period. This was as a result of decreases in expenditure in respect of leasing costs and refurbishments.
Income from the Funds listed investment in Australia increased due to an increase in the distribution received from GOZ and the depreciation of the rand against the Australian
dollar.
Net interest costs rose by 30,7% to R119,4 million as a result of the drawdown of the Funds available debt facilities for the capital expenditure noted above, while the average
interest rate payable declined to 8,9% following the debt facility and interest-rate swap restructuring, as well as the decline in lending rates.
Net asset value increased by 4,3% from 1 153 cents per PI at 30 June 2012 (1 196 cents excluding the deferred tax provision) to 1 202 cents per PI (1 249 cents) at 31 December
2012 as a result of the revaluation of investment properties and the investment in GOZ, offset by the repurchase of PIs, the fees paid to cancel interest rate swap agreements and the
deficit on the revaluation of interest rate agreements held at 31 December 2012.
Distribution statement for the six months ended 31 December 2012
R000 December December % change Year ended
2012 2011 30 June 2012
Operating lease rental income and tenant recoveries excluding 670 935 640 640 4,7 1 259 787
straight-lining of leases
Property expenses excluding amortised upfront lease costs (254 344) (255 190) (0,3) (475 728)
Per statement of comprehensive income (249 798) (254 400) (1,8) (475 141)
Amortised upfront lease costs (4 546) (790) (587)
Net property income 416 591 385 450 8,1 784 059
Income from listed investment 17 288 15 969 8,3 33 522
Management expenses
Reimbursement to STREM (9 433) (8 746) 7,9 (18 061)
Administration expenses (22 189) (23 572) (5,9) (47 037)
Per statement of comprehensive income (35 990) (32 357) 11,2 (66 764)
Charge in respect of share appreciation rights scheme 4 347 - -
Management expenses incurred by STREM included in the above 9 454 8 785 7,6 19 727
Depreciation (5 874) (5 211) 12,7 (10 739)
Per statement of comprehensive income (5 894) (5 211) 13,1 (10 757)
Depreciation incurred by STREM included in the above 20 - 18
Net finance costs (119 437) (91 360) 30,7 (184 373)
Finance costs (124 084) (93 975) 32,0 (189 571)
Interest paid and amortised borrowing costs (124 143) (99 546) 24,7 (208 205)
Interest capitalised to the cost of developments 59 11 925 (99,5) 26 168
Preference share dividends paid - (5 776) (100,0) (6 849)
STC on preference share dividends paid - (578) (100,0) (685)
Investment income 4 647 2 615 77,7 5 198
Per statement of comprehensive income 4 688 2 654 76,6 5 274
Investment income earned by STREM (41) (39) 5,1 (76)
Distribution payable to participatory interest holders 276 946 272 530 1,6 557 371
Number of units in issue 497 299 883 506 466 288 (1,8) 500 864 482
Distribution per participatory interest (cents) 55,69 53,81 3,5 110,68
Disposals
In accordance with the strategy of the Fund, certain properties that are underperforming or pose excessive risk to the Fund are earmarked and disposed of.
Properties transferred out of Emira during the six months to December 2012
Valuation Sale Exit
June 2011 price yield
Property Sector Location GLA (m²) (Rm) (Rm) (%) Effective date
Mutual Mews Retail Rivonia Gauteng 1 596 12,0 11,9 11,9 31 July 2012
33 Heerengracht Office Cape Town CBD 6 744 19,2 25,0 (1,4)* 3 August 2012
Midrand Business Park Office Midrand Gauteng 13 420 52,2 49,0 10,9 31 August 2012
83,4 85,9 7,4
* Building was substantially vacant and had been moth-balled, resulting in operating expenses with minimal income.
Properties sold but not yet transferred at December 2012
Valuation
June 2011
Property Sector Location GLA (m²) (Rm) Anticipated effective date
Montana Value Centre Retail Montana Gauteng 9 717 39,2 March 2013
Fleetway House Office Cape Town CBD 7 090 33,4 May 2013
Worldwear Fashion Mall Retail Fairlands Gauteng 14 172 37,0 May 2013
Vacancies
Number of June 2012 Vacancy Number of Dec 2012 Vacancy
of buildings GLA (m²) June 2012 % of buildings GLA (m²) Dec 2012 %
Office 69 449 283 83 657 18,6 67 435 159 62 873 14,4
Retail 38 379 741 24 623 6,5 37 377 596 16 260 4,3
Industrial 42 340 244 10 783 3,2 42 339 330 10 154 3,0
Total 149 1 169 268 119 063 10,2 146 1 152 085 89 287 7,8
Valuations
One-third of Emiras portfolio is valued by independent valuers at the end of every financial year, with the balance being valued by the directors. At the interim stage,
directors valuations are used.
Total portfolio movement
June 2012 Dec 2012 Difference Difference
Sector (R000) R/m2 (R000) R/m2 (%) (R000)
Office 3 884 752 8 647 4 378 957 10 063 12,7 494 205
Retail 3 027 980 7 974 3 241 977 8 586 7,1 213 997
Industrial 1 446 640 4 252 1 495 140 4 406 3,4 48 500
Property under development 454 346 - (454 346)
8 813 718 9 116 074 3,4 302 356
Investment properties increased by R302,3 million made up of capital expenditure including capitalised interest of R111,8 million, less disposals of R85,9 million, depreciation
of R5,9 million and a net upward revision in property values of R282,3 million.
Debt
Emira has a moderate level of gearing with debt to total assets at 31 December 2012 equating to 28,4%.
In order to take advantage of the current prevailing low interest rate environment, Emira raised R400 million through the issue of three-month commercial paper into the market in
August 2012 at an all in rate of 5,425%. The funds were utilised to redeem part of the Emira securitisation of R650 million. The paper was successfully rolled-over for a further
three months in November 2012, at an all in rate of 5,385%. A further R450 million was raised in November 2012 through the issue of one-year commercial paper at an all in rate of
5,825%. These funds were used to repay the balance of the Emira securitisation (R250 million) and to fund the extensions being undertaken at Wonderpark Shopping Centre.
In December 2012 the Fund restructured its debt swap profile by extending, cancelling and re-entering into certain interest-rate swap agreements. After taking into account
funding costs in respect of the cancellation fees of R28,7 million that were incurred, there is an estimated net benefit to the Fund of R4,5 million per annum. The cancellation fees
paid will not effect distributions.
As at 31 December 2012, 80,1% of the Funds debt had been fixed for periods of between three and 12 years. After the restructuring mentioned above, at 31 December 2012, the
weighted average cost of debt equated to 8,9%.
Weighted Weighted
average rate % average term Amount (Rm) % of debt
Debt Swap 9,5 6 years, 4 months 2 216,6 80,1
Debt Floating 6,3 549,3 19,9
Total 8,9 2765,9 100,0
Less: Costs capitalised not yet amortised (4,3)
Per statement of financial position 2 761,6
Prospects
The outlook for distributions has improved during the period as a result of various operational improvements, the sale of non-core buildings, earnings enhancing acquisitions,
debt restructuring and the repurchase of PIs. The rate of growth in distributions for the 12 months to June 2013 is therefore expected to approximate that achieved for the period
under review. The forecast financial information on which this statement has been based has not been reviewed or reported on by the Funds auditors.
Income distribution declaration
Notice is hereby given that an interim cash distribution of 55,69 cents (2012: 53,81 cents) per participatory interest has been declared, payable to participatory interest
holders on 11 March 2013. The source of the distribution comprises net income from property rentals, income earned from the Funds listed property investment and interest earned on cash
on deposit. Please refer to the statement of comprehensive income for further details. The distribution is not regarded as a dividend and therefore no dividend withholding tax
is payable on the distribution amount.
Last day to trade cum distribution Friday, 1 March 2013
Participatory interests trade ex distribution Monday, 4 March 2013
Record date Friday, 8 March 2013
Payment date Monday, 11 March 2013
PI certificates may not be dematerialised or rematerialised between Monday, 4 March 2013 and Friday, 8 March 2013, both days inclusive.
By order of the STREM Board
Martin Harris Ben van der Ross James Templeton Sandton
Company Secretary Chairman Chief Executive Officer 12 February 2013
Condensed consolidated statement of comprehensive income
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Dec 2012 31 Dec 2011 30 Jun 2012
R000 R000 R000
Revenue 658 566 637 051 1 253 379
Operating lease rental income and tenant recoveries 670 935 640 640 1 259 787
Allowance for future rental escalations (12 369) (3 589) (6 408)
Income from listed property investment 17 288 15 969 33 522
Property expenses (249 798) (254 400) (475 141)
Payment in respect of amendment to existing service charge arrangement - (68 250) (68 250)
Fee paid on cancellation of interest-rate swap agreements (28 713) - -
Administration expenses (35 990) (32 357) (66 764)
Depreciation (5 894) (5 211) (10 757)
Operating profit 355 459 292 802 665 989
Net fair value adjustments 341 288 39 803 307 127
Net fair value gain/(deficit) on investment properties 290 157 (12 873) 218 242
Change in fair value as a result of straight-lining lease rentals 12 369 3 589 6 408
Change in fair value as a result of amortising upfront lease costs (4 546) (790) (587)
Change in fair value as a result of property appreciation/(depreciation) in value 282 334 (15 672) 212 421
Revaluation of derivative financial instrument relating to share appreciation rights scheme 4 604 - (243)
Unrealised gain on fair valuation of listed property investment 46 527 52 676 89 128
Profit before finance costs 696 747 332 605 973 116
Net finance costs (148 431) (174 981) (325 175)
Finance income 4 688 2 654 5 274
Interest received 4 688 2 654 5 274
Finance costs (153 119) (177 635) (330 449)
Interest paid and amortised borrowing costs (124 143) (99 546) (208 205)
Interest capitalised to the cost of developments 59 11 925 26 168
Preference share dividends paid - (5 776) (6 849)
Unrealised deficit on interest-rate swaps (29 035) (84 238) (141 563)
Profit before income tax charge 548 316 157 624 647 941
Income tax charge (16 000) (248) (68 669)
SA normal taxation - (8 861) (9 796)
Deferred taxation (16 000) 9 191 (58 188)
Revaluation of investment properties (14 010) 12 613 (53 201)
Other timing differences including allowance for future rental escalations (1 990) (3 422) (4 987)
STC on preference share dividends paid - (578) (685)
Profit for the period 532 316 157 376 579 272
Attributable to Emira equity holders 536 736 157 376 581 037
Attributable to non-controlling interests (4 420) - (1 765)
532 316 157 376 579 272
Total comprehensive income
Attributable to Emira equity holders 536 736 157 376 581 037
Attributable to minority interests (4 420) - (1 765)
532 316 157 376 579 272
Condensed consolidated statement of cash flows
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Dec 2012 31 Dec 2011 30 Jun 2012
R000 R000 R000
Cash generated from operations 395 482 387 590 770 266
Finance income 4 688 2 654 5 274
Interest paid (124 143) (99 546) (208 205)
Preference share dividends paid - (5 776) (6 849)
Taxation paid - (3 774) (9 770)
Cancellation payment in respect of amendment to existing service charge arrangement - (68 250) (68 250)
Fee paid on cancellation of interest-rate swap agreements (28 713) - -
Distribution to participatory interest holders (284 842) (296 221) (568 750)
Net cash utilised in operating activities (37 528) (83 323) (86 284)
Acquisition of, and additions to, investment properties and fixtures and fittings (111 756) (182 675) (675 077)
Proceeds on disposal of investment properties and fixtures and fittings 85 900 210 645 266 400
Acquisition of investment in listed property fund (17 288) (61 096) (61 096)
Net cash utilised in investing activities (43 144) (33 126) (469 773)
Participatory interests re-purchased (51 141) (18 110) (86 530)
Interest in interest-bearing debt 136 655 79 131 574 171
Derivative acquired in respect of share appreciation rights scheme (3) - (3 908)
Net cash generated from financing activities 85 511 61 021 483 733
Net increase/(decrease) in cash and cash equivalents 4 839 (55 428) (72 324)
Cash and cash equivalents at the beginning of the period 22 188 94 512 94 512
Cash and cash equivalents at the end of the period 27 027 39 084 22 188
Condensed consolidated statement of financial position
Unaudited Unaudited Audited
31 Dec 2012 31 Dec 2011 30 Jun 2012
R000 R000 R000
Assets
Non-current assets 9 147 203 7 886 284 8 603 145
Investment properties 8 489 374 7 327 848 8 006 870
Allowance for future rental escalations 128 863 142 254 140 296
Unamortised upfront lease costs 39 037 34 087 33 855
Fair value of investment properties 8 657 274 7 504 189 8 181 021
Listed property investment 482 274 382 007 418 459
Derivative financial instrument 7 655 - 3 665
Deferred taxation - 88 -
Current assets 115 401 154 696 126 504
Accounts receivable 88 374 115 612 104 316
Cash and cash equivalents 27 027 39 084 22 188
Non-current assets held for sale 458 800 636 092 632 697
Total assets 9 721 404 8 677 072 9 362 346
Equity and liabilities
Participatory interest holders capital and reserves 5 979 450 5 706 586 5 775 221
Non-current liabilities 2 299 656 2 078 561 2 317 506
Interest-bearing debt 1 911 574 1 929 879 1 974 919
Derivative financial instruments 156 108 - 126 614
Deferred taxation 231 974 148 682 215 973
Current liabilities 1 442 298 891 925 1 269 619
Short-term portion of interest-bearing debt 850 000 200 000 650 000
Accounts payable 246 650 280 945 265 616
Derivative financial instruments 68 702 138 450 69 161
Distribution payable to participatory interest holders 276 946 272 530 284 842
Total equity and liabilities 9 721 404 8 677 072 9 362 346
Reconciliation between earnings and headline earnings and distribution
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Dec 2012 31 Dec 2011 30 Jun 2012
R000 R000 R000
Profit for the period attributable to equity holders 532 316 157 376 579 272
Adjusted for:
Net fair value (gain)/deficit on revaluation of investment properties (290 157) 12 873 (218 242)
Deferred taxation on revaluation of investment properties 14 010 (12 613) 53 201
Headline earnings 256 169 157 636 414 231
Adjusted for:
Allowance for future rental escalations 12 369 3 589 6 408
Amortised upfront lease costs (4 546) (790) (587)
Unrealised deficit on interest-rate swaps 29 035 84 238 141 563
Revaluation of derivative financial instrument relating to share appreciation rights scheme (4 604) - 243
Unrealised gain on listed property investment (46 527) (52 676) (89 128)
Payment in respect of amendment to existing service charge arrangement - 68 250 68 250
Charge in respect of leave pay provision and share appreciation rights scheme 4 347 - 1 608
Fee paid on cancellation of interest-rate swap agreements 28 713 - -
SA normal taxation - 8 861 9 796
Deferred taxation other timing differences 1 990 3 422 4 987
Distribution payable to participatory interest holders 276 946 272 530 557 371
Distribution per participatory interest
Interim (cents) 55,69 53,81 53,81
Final (cents) - - 56,87
55,69 53,81 110,68
Number of participatory interests in issue at the end of the period 497 299 883 506 466 288 500 864 482
Weighted average number of participatory interests in issue 498 587 863 507 828 350 506 806 636
Earnings per participatory interest (cents) 106,76 30,99 114,30
The calculation of earnings per participatory interest is based on net profit for the
period of R532,3 million (2011: R157,4 million), divided by the weighted average
number of participatory interests in issue during the period of 498 587 863
(2011: 507 828 350).
Headline earnings per participatory interest (cents) 51,38 31,04 81,73
The calculation of headline earnings per participatory interest is based on net
profit for the period, adjusted for non-trading items, of R256,2 million
(2011: R157,6 million), divided by the weighted average number of participatory
interests in issue during the period of 498 587 863 (2011: 507 828 350).
Condensed consolidated statement of changes in equity
Revaluation Non-
Participatory and other Retained controlling
interest reserves earnings interest Total
R000 R000 R000 R000 R000
Balance at 1 July 2011 3 755 926 2 081 521 (1 356) 3 759 5 839 850
Participatory interests repurchased (18 110) (18 110)
Total comprehensive income for the period 157 376 157 376
Distribution to participatory interest holders (272 530) (272 530)
Transfer from fair value reserve (net of deferred taxation) (115 154) 115 154 -
Balance at 31 December 2011 3 737 816 1 966 367 (1 356) 3 759 5 706 586
Balance at 1 July 2012 3 669 396 2 105 118 (1 287) 1 994 5 775 221
Participatory interests repurchased (51 141) (51 141)
Total comprehensive income for the period 536 736 (4 420) 532 316
Distribution to participatory interest holders (276 946) (276 946)
Transfer to fair value reserve (net of deferred taxation) 259 790 (259 790) -
Balance at 31 December 2012 3 618 255 2 364 908 (1 287) (2 426) 5 979 450
Related parties and related party transactions
At 31 December 2012 the Funds BEE partners The Tiso Group, The Shalamuka Foundation, Avuka Investments, The RMBP Broad Based Empowerment Trust and Mr B van der Ross held 12,2% of
the participatory interests in issue. The remaining participatory interests were widely held.
The following transactions were carried out with related parties:
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Dec 2012 31 Dec 2011 30 Jun 2012
R000 R000 R000
Strategic Real Estate Managers (Pty) Ltd
Payment in respect of amendment to existing service charge arrangement - 68 250 68 250
Relationship: Manager of Emira Property Fund
Segmental information
Administrative
Office Retail Industrial and Corporate Total
Sectoral segments R000 R000 R000 R000 R000
Revenue 305 191 268 067 85 308 658 566
Revenue 298 433 267 746 104 756 670 935
Allowance for future rental escalations 6 758 321 (19 448) (12 369)
Segmental result -
Operating profit 180 735 146 473 56 745 (28 494) 355 459
Investment properties 4 378 957 3 241 977 1 495 140 9 116 074
Geographical segments
Revenue
Gauteng 222 900 174 553 77 827 475 280
Western and Eastern Cape 36 997 24 231 12 192 73 420
KwaZulu-Natal 24 479 43 234 14 737 82 450
Free State 14 057 25 728 39 785
298 433 267 746 104 756 670 935
Investment properties
Gauteng 3 397 080 2 073 732 1 127 540 6 598 352
Western and Eastern Cape 553 600 361 000 171 900 1 086 500
KwaZulu-Natal 288 977 518 245 195 700 1 002 922
Free State 139 300 289 000 428 300
4 378 957 3 241 977 1 495 140 9 116 074
Basis of preparation and accounting policies
The unaudited condensed consolidated interim financial statements of Emira Property Fund (Emira or the Fund) have been prepared in accordance with International Financial Reporting
Standards (IFRS) including IAS 34, and are in compliance with the Listings Requirements of the JSE Limited. The accounting policies used in the preparation of these financial
statements are consistent with those used in the annual financial statements for the year ended 30 June 2012.
As a result of the amendment to the service charge arrangements, in terms of IFRS, the risk and rewards of the manager of Emira, Strategic Real Estate Managers (Pty) Ltd
(STREM) are deemed to be attributable to Emira. The financial statements of STREM have therefore been consolidated with those of Emira, even though Emira has no direct or indirect
shareholding in STREM. This report was compiled under the supervision of Peter Thurling CA(SA), the Chief Financial Officer.
Fund Manager: Strategic Real Estate Managers (Pty) Limited Directors of the Fund Manager: BJ van der Ross (Chairman)*, JWA Templeton (Chief Executive Officer), MS Aitken*, BH
Kent**, V Mahlangu**, NE Makiwane**, W McCurrie*, MSB Neser**, V Nkonyeni*, PJ Thurling, U van Biljon *Non-executive Director **Independent Non-executive Director Registered
address: 3 Gwen Lane, Sandton, 2146 Sponsor: Rand Merchant Bank (a division of FirstRand Bank Limited) Transfer Secretaries: Computershare Investor Services (Pty) Limited, 70
Marshall Street, Johannesburg, 2001
13 February 2013
Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Date: 13/02/2013 03:53:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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