Wrap Text
Pre-close operational update
EMIRA PROPERTY FUND LIMITED
Incorporated in the Republic of South Africa
(Registration number 2014/130842/06)
JSE share code: EMI ISIN: ZAE000203063
JSE bond company code: EMII
LEI Number: 3789005E23C6259EAE70
(Approved as a REIT by the JSE)
("Emira", "the Company" or "the Fund")
PRE-CLOSE OPERATIONAL UPDATE
Shareholders and noteholders are referred to the Fund's full-year results announcement for the year
ended 31 March 2025 ("year-end results"), released on SENS on 28 May 2025. The Company wishes to
provide an update to investors regarding the operational performance of its investments for the 4-months
ended 31 July 2025 ("the period") together with other financial information up to the date of this
announcement.
SA DIRECT LOCAL PORTFOLIO
Commercial portfolio
Emira's commercial portfolio, comprising directly held local retail, industrial, and office properties,
performed in line with expectations for the period. Portfolio vacancies improved to 4,6% (by GLA) (March
2025: 6,4%), largely due to the RTT Group reinstating 15 840m² at RTT Acsa Park that had been
relinquished in the prior financial year. Tenant retention remains a priority, with 86,6% (by gross rental) of
leases maturing during the period renewed. Market rental growth continues to lag the Fund's contractual
rental escalations, with weighted average total reversions for the period at -6,3% (March 2025: -5,6%). The
Fund's weighted average lease expiry ("WALE") remained stable at 2,8 years (March 2025: 2,8 years), with
average annual lease escalations broadly unchanged at 6,4% (March 2025: 6,5%). Portfolio collections vs
billings for the period were 95,7%.
During the period, the Fund disposed of one industrial property, HBP Industrial Units, realising gross
proceeds of R58,5m. In addition, disposals of two further properties, with aggregate gross proceeds of
R251,0m, are unconditional and are expected to transfer by December 2025.
Emira's sectoral performance during the period is as follows:
Retail:
Retail vacancies increased to 5,1% (March 2025: 4,2%). The WALE is unchanged at 3,1 years (March
2025: 3,1 years) and 93,5% (by gross rental) of maturing leases in the period were retained. Total
weighted average reversions for the period have declined to -3,3% (March 2025: -1,2%).
Emira's retail portfolio of 12 properties consist mainly of grocer-anchored neighbourhood and
community shopping centres, the largest being Wonderpark, a 91 038m² dominant regional
shopping centre located in Karen Park, Pretoria North.
Office:
Office vacancies increased to 8,8% (March 2025: 8,4%). The WALE is unchanged at 2,5 years
(March 2025: 2,5 years) and 84,9% (by gross rental) of maturing leases in the period were retained.
Total weighted average reversions for the period improved to -7,8% (March 2025: -9,3%).
Emira's office portfolio consists of 10 properties, the majority of which are P- and A-grade
properties. The sector's fundamentals remain depressed, with low demand continuing to limit real
rental growth.
Industrial:
Industrial vacancies improved to 2,0% (March 2025: 7,9%) due to the RTT Group taking back 15
840m² at RTT Acsa Park which they had vacated in the previous financial year. The WALE improved
to 2,8 years (March 2025: 2,6 years) and 79,1% (by gross rental) of maturing leases in the period
were retained. Total weighted average reversions for the period have improved to -7,1% (March
2025: -9,9%).
Emira's 19 industrial properties are split between single-tenant light industrial and warehouse
facilities and multi-tenant midi- and mini-unit industrial parks.
Residential portfolio
As at 31 July 2025 the Fund's residential portfolio consists of 2 248 units (March 2025: 3 347) located in
Gauteng and Cape Town.
The occupancy rate of the portfolio reduced to 94,4% (by unit) as at 31 July 2025 (March 2025: 96,6%).
Included in the occupancy rate are the 'for sale' sectional title properties where vacancies are generally
elevated as vacated units are typically left untenanted to facilitate the unit-by-unit disposal process. When
the 'for sale' units are excluded, the occupancy rate was 95,9% (March 2025: 97,2%). Collections vs billings
for the period under review were 95,5%.
Sales in the portfolio continued to progress well, with a further 1 097 units transferring during the period,
generating total gross proceeds, before costs, of R652,2m (of which R569,8m had been classified as held
for sale as at 31 March 2025). A further 289 units, with aggregate gross proceeds of R147,8m, are currently
under contract and are expected to transfer by December 2025.
USA
At 31 July 2025, the US portfolio comprised 11 equity investments in grocery-anchored, value-oriented,
open-air power centres. Portfolio vacancies at the end of the period increased to 6.2% (March 2025: 4.6%),
primarily due to the closure of the 56,162 sq ft Joann store at Belden Park Crossing following its Chapter
11 bankruptcy filing. Overall, the underlying US portfolio continues to perform in line with expectations.
In August 2025, the Fund disposed of its equity interest in University Town Center ("UTC"), realising net
proceeds of $14,5m, before capital gains tax and branch profits tax. The transaction followed an approach
from a co-investor and provided an opportunity to unlock liquidity at a small premium to UTC's March
2025 book value.
DL Invest Group SA ("DL Invest")
Emira holds a 45% equity interest in DL Invest, a Luxembourg-headquartered Polish property company.
Through its subsidiaries (the "DL Group"), the business develops and owns logistics centres and industrial
assets, mixed-use/office centres, and retail parks across Poland. With an internal team in excess of 240
employees, the DL Group executes the full investment process in-house and actively manages projects as
a long-term owner.
As at 30 June 2025, the DL Group's portfolio comprised 39 income-generating properties (excluding land
and developments) valued at approximately €687,5m. By value, the portfolio consists of logistics and
industrial assets (67%), retail parks (11%), and mixed-use/office properties (22%). In addition, the DL
Group held land and properties under development with a combined carrying value of €181,6m. As at the
31 July 2025, total vacancies across the DL Group's operating portfolio improved to 2,9% (March 2025:
3,1%), while the WALE was stable at 5,4 years (March 2025: 5,5 years).
DL Invest has established a strong position in the Polish market through its integrated business model,
diversified portfolio, and consistent financial performance. During the period, the DL Group successfully
issued a €350m Eurobond listed on the Luxembourg Stock Exchange. The issuance was oversubscribed by
leading institutional investors, reinforcing the Group's market standing and positioning it among a limited
number of Polish corporates with access to international capital markets.
27 August 2025 marked the first anniversary of Emira's investment in DL Invest. The Fund is encouraged
by DL Invest's performance over the year, particularly its execution against strategy. The outlook for
Poland's commercial real estate market remains positive, underpinned by a resilient economy, strong
investor demand, and sector-specific growth drivers, especially in logistics and industrial assets. Emira's
investment has created a strong foundation for its strategic partnership with DL Invest, positioning both
parties for long term collaboration and providing the Fund with access to potential future opportunities in
Poland.
SA Corporate Real Estate Limited ("SA Corporate")
As at 31 August 2025, Emira had acquired 144,183,194 ordinary shares in SA Corporate for an aggregate
consideration of R420,6m in a series of on-market transactions.
Emira has generated significant liquidity through its disposal programme and considers an investment in
SA Corporate to be consistent with its investment strategy of acquiring interests in undervalued, quality
assets.
Capital management and liquidity
As at 31 August 2025 the Fund had unutilised debt facilities of R1,0bn together with cash-on-hand of
R415,9m. This will be bolstered once those properties currently under contract for disposal transfer.
The Fund's loan-to value ratio ("LTV") as at 31 August 2025 is 37,1% (March 2025: 36,3%).
Conclusion
The Fund is on track to achieve its objectives for FY26.
Emira expects to release its interim results for the six-months ended 30 September 2025 on Wednesday,
12 November 2025.
This information is the responsibility of the Directors and has not been reviewed or reported on by our
external auditors.
Bryanston
29 September 2025
Equity and Debt Sponsor
Date: 29-09-2025 05:30:00
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