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EMIRA PROPERTY FUND LIMITED - Response to COVID-19 and withdrawal of dividend guidance

Release Date: 25/03/2020 16:30
 
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Response to COVID-19 and withdrawal of dividend guidance

EMIRA PROPERTY FUND LIMITED
Incorporated in the Republic of South Africa
(Registration number 2014/130842/06)
JSE share code: EMI     ISIN: ZAE000203063
JSE Interest Rate Issuer Code: EMII
(Approved as a REIT by the JSE)
(“Emira” or “the Company”)

RESPONSE TO COVID-19 AND WITHDRAWAL OF DIVIDEND GUIDANCE

Response to COVID-19

The global COVID-19 pandemic has given rise to unprecedented circumstances in our communities
and in our financial markets. Given the threat it represents to the world and South Africa, the Board of
Directors of Emira (“the Board”) unequivocally supports the measures taken by the State President and
the South African Government to curtail the spread of the virus.

Balance sheet position

Shareholders are advised that Emira is taking on this crisis with a strong balance sheet, sustainable
debt levels and a sound liquidity position. More specifically:

    •   Emira’s loan-to-value ratio of 35.1% and interest cover ratio of 3.2 times at 31 December 2019
        remains intact and compares favourably with the Company’s lowest banking covenants of 45%
        and 2.0 times, respectively.
    •   in respect of its liquidity position, Emira has already refinanced most of its shorter-term debt
        maturities and less than R650 million of its R5,2 billion debt is due to expire in the period ended
        31 December 2020.
    •   Emira’s available cash on hand and undrawn facilities currently total R550 million, with further
        backup facilities in progress. Interest rate swap terms and cross-currency interest rate swap
        terms have already been extended, and the average duration is in excess of three years.

Effect on Emira

The duration and extent of the effects of the COVID-19 pandemic are currently unknown, and this
uncertainty extends to quantifying its impact on the balance sheet and distributable income of Emira.
While the lock-down implemented to reduce the spread of the virus will undoubtedly impact Emira’s
tenants, it is at this stage unclear to what degree.

More clarity and certainty will emerge in the weeks ahead and, until then, Emira will continue to act
responsibly, proactively and sustainably, and in the best interests of all of its stakeholders.

Emira’s lines of communication with its tenants, service providers and all stakeholders are open. The
Board will actively adapt and modify the Company’s approach as the situation unfolds, and as the
impact on Emira becomes more certain.

Withdrawal of dividend guidance

Given the uncertainty surrounding the financial impact of the COVID-19 pandemic on Emira, the Board
is of the view that it is no longer appropriate for the dividend guidance for the six-month period ending
30 June 2020, as given on 19 February 2020, to remain in place. The Board will provide further guidance
once there is clarity and certainty on the impact of the COVID-19 pandemic on its operations.


Bryanston
25 March 2020

Sponsor
Questco Corporate Advisory Proprietary Limited

Date: 25-03-2020 04:30:00
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