Emira Property Fund wishes to update shareholders regarding the impact of Covid-19 on its South African and American operations, together with other relevant information, prior to its year-end on the 30th of June 2020 when it will enter a closed period. This follows the SENS announcement on the 25th of March 2020.
Operational update: direct portfolio
Emira has taken a long-term view when assessing the type and level of rent relief provided to tenants. Tenant sustainability has been at the forefront of the Company’s considerations with a considerable amount of time being spent on engaging with tenants, both directly and through collective industry initiatives, to understand the impact of the Covid-19 related lockdown on their businesses.
The Company has shared the burden by aiding most of its tenants, with a focus on those tenants hardest hit by the lockdown, specifically those unable to trade and Small, Medium and Micro Enterprises (“SMMEs”). Concessions in the form of gross rental deferrals and/or rental remissions have been provided to tenants, depending on their specific circumstances, for the months of April, May and June 2020 and certain negotiations are still underway.
The rent deferrals provided have payment terms ranging from three to nine months, with most deferred rentals being payable in nine equal installments, commencing October 2020. From a commercial perspective, it is more efficient for Emira to invoice the deferred portion of rentals only when payable, hence the applicable deferred rental portions have been credited in April, May and June 2020, respectively.
Read the full update here: