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 half-year results announcement for the six
months ended 30 September 2025 ("interim results"), released on SENS on 12 November 2025. The
Company wishes to provide an update to investors regarding the operational performance of its
investments for 10-months ended 31 January 2026 ("the period") together with other financial
information up to the date of this announcement.
SA direct local portfolio
Commercial portfolio (operational metrics for the 10 -month period apply to 37 held properties)
During the period, the South African economy showed signs of stabilisation, with modest growth,
easing inflation, a stronger Rand, and improving domestic sentiment. The local commercial property
portfolio performed in line with expectations. However, the recent escalation of US–Iran tensions in
the Middle East has increased global oil prices which is expected to increase inflation which could
impact funding costs, valuations, and investor sentiment while weighing on liquidity and near-term
sector recovery.
Vacancies across the total portfolio increased to 4,5% (by GLA) at the end of the period (September
2025: 3,8%). The increase was due to SALGA vacating 3 564m² at Menlyn Corporate Park in October
2025. Although total portfolio vacancies have increased, 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 being retained. Total weighted average rent
reversions for the period have improved to -3,7% (September 2025: -4,7%).
The Fund's weighted average lease expiry ("WALE") at the end of the period improved to 3,0 years
(September 2025: 2,7 years), while average annual lease escalations remained the same at 6,4%.
Emira's experience by sector is as follows:
Retail:
Retail vacancies at the end of the period improved to 4,5% (September 2025: 4,8%). The
WALE increased to 3,9 years (September 2025: 3,1 years) and 84,5% (by gross rental) of
maturing leases in the period were retained. Total weighted average rent reversions for the
period are similar at 0,5% (September 2025: 0,6%).
Emira's retail portfolio of 11 properties (September 2025: 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 at the end of the period increased to 9,9% (September 2025: 8,0%) due to
SALGA vacating a portion of their space at Menlyn Corporate Park. The WALE improved to 2,5
years (September 2025: 2,3 years) and 92,2% (by gross rental) of maturing leases in the
period were retained. Total weighted average rent reversions for the period improved to -3,7%
(September 2025: -4,2%).
Emira's office portfolio consists of 10 properties (September 2025: 10 properties), the
majority of which are P- and A-grade properties. While the sector's fundamentals remain
subdued, improving demand is beginning to support a gradual recovery in real rental growth.
Industrial:
Industrial vacancies at the end of the period increased to 1,3% (September 2025: 0,4%). The
WALE decreased marginally to 2,5 years (September 2025: 2,6 years) and 86,5% (by gross
rental) of maturing leases in the period were retained. Total weighted average rent reversions
for the period have improved slightly to -8,0% (September 2025: -8,8%).
Emira's 16 industrial properties (September 2025: 19 properties) are split between single-
tenant light industrial and warehouse facilities and multi-tenant midi-unit and mini-unit
industrial parks.
Residential portfolio
The residential portfolio consists of 2 104 units (September 2025: 2 203) located in Gauteng (96% of
units) and Cape Town (4% of units).
Vacancies at the end of the period for the residential held portfolio (excluding any held-for-sale units)
was similar at 1,8% by units (September 2025: 1.7%).
Disposals
During the period, four commercial properties were transferred out of the Fund, and subsequent to
31 January 2026 a further three properties have transferred, generating total gross proceeds of
R479m. These disposals comprise of four industrial properties, two retail properties and one office
property.
During the period and subsequent to 31 January 2026, 1 321 units in the residential portfolio have
transferred, realising total gross disposal proceeds of R782m.
US portfolio
As at 31 January 2026, the US portfolio comprised of eight equity investments in grocery anchored,
value orientated, open air power centres (September 2025: 10). During the period Emira and its co-
investors successfully completed the disposal of:
• University Town Centre – August 2025
• Dawson Marketplace – November 2025
• Moore Plaza – December 2025
These disposals realised total gross proceeds for Emira, before closing costs, capital gains and
branch profit taxes, of USD 46m (c. R782m). Post 31 January 2026, a further two investments were
disposed, namely Wheatland Towne Center and Stony Creek Marketplace, realising total gross
proceeds to Emira of USD 18m (c. R306m).
At the end of the period, vacancies across the remaining US portfolio properties improved to 2,4%
(September 2025: 2,8%).
DL Invest Group S.A ("DL Invest")
Emira holds a 45% equity interest in DL Invest, a Luxembourg-headquartered Polish property
company. Through its subsidiaries (collectively the "DL Group"), it develops and holds logistics
centres, mixed use/office centres, and retail parks across Poland.
As at 31 December 2025, the DL Group held a portfolio of 42 properties (excluding land and
properties under development). This portfolio consists of logistics/industrial properties (82% by
GLA), retail properties (7% by GLA), and mixed-use properties (11% by GLA). As at 31 December
2025, total vacancies across DL Invest's portfolio decreased to 2,7% (September 2025: 3,0%), while
the WALE remained at 5,2 years.
Emira's equity interest in DL Invest is held through linked units, each comprising an indivisible
ordinary B share and a loan note. During the period, Emira received EUR 3,6m (c. R70m), being the
return on the linked units for the six-months ended 30 September 2025. A further EUR 3,7m (c. R72m)
is due on 31 March 2026.
SA Corporate Real Estate Limited ("SA Corporate")
As at 31 January 2026 Emira held an 8,7% equity interest in SA Corporate. Subsequently, and
following the increase in SA Corporate's share price, Emira disposed a portion of its investment
realising gross proceeds of R188,8m, which is in line with its strategy of realising assets at or close
to their net asset value.
Capital management and liquidity
As at 31 January 2026, the Fund had unutilised debt facilities of R1,43bn together with cash-on-hand
of R740,2m. This liquidity position has subsequently been further strengthened by proceeds
received from local commercial and residential property disposals, as well from the disposal of
investments in the USA.
The Fund's loan-to value ratio ("LTV") improved to 34,1% as at 31 January 2026 (September 2025:
35,6%), primarily due to disposal proceeds that have either been applied to reduce debt or retained
as cash. The LTV has subsequently improved further following the additional disposals.
Restructure of Inani Prop Holdings (Pty) Limited ("Inani")
During the period, Emira participated in a restructuring of Inani, in which it holds a 20% equity
interest. The transaction involved establishing Inani as a joint venture between Emira and two new
shareholders, alongside a restructuring of the senior debt. Emira retained its 20% stake in Inani.
As part of the restructure, participating shareholders have agreed to provide the following support
over a four-year period:
• Cash Flow Underwrite: commitment to fund any shortfall between Inani's net operating cash
flow and its debt service and capital expenditure requirements.
• De-gearing Underwrite: commitment to fund any shortfall of a targeted senior debt reduction
of R134,7m through asset disposals by the third anniversary.
• Sales Underwrite: commitment to acquire any remaining properties on the fourth
anniversary at a value equal to the outstanding senior debt.
Emira's participation in these undertakings is 30%. Funding for Emira's proportion of the
commitments will be provided by Inani's senior lender.
Any amounts under the Cash Flow and De-gearing Underwrites will be provided to Inani through the
subscription of preference shares. The Sales Underwrite will be settled through the acquisition of a
proportionate share of any remaining properties at the end of the term.
The underwrites are recognised by Emira as financial liabilities in terms of IFRS 9, and the valuation
thereof will reflect the expected performance of the underlying properties, any assets under contract
for sale, and anticipated exit values of the remaining portfolio.
As previously communicated, Emira assumed asset management responsibility for the Inani
portfolio in December 2024. Since then, good progress has been made in stabilising Inani's eight
remaining assets through a combination of income-accretive capital expenditure, letting activity,
and asset sales aimed at reducing senior debt.
Conclusion
The Fund is on track to its objectives for the full year ended 31 March 2026. As disclosed in Emira's
results for the year ended 31 March 2025, the executive directors' KPI for distributable income per
share is 127,78 cents for the 12 months to 31 March 2026.
Emira expects to release its results for the full year ended 31 March 2026 on Wednesday, 27 May
2026.
This information is the responsibility of the Directors and has not been reviewed or reported on by
our external auditors.
Bryanston
31 March 2026
Equity and Debt Sponsor
Questco Corporate Advisory
Date: 31-03-2026 05:15:00
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