Emira Property Fund has announced its new CEO, James Day, a non-executive director of Emira and the financial director of Castleview Property Fund, with effect from the 1st of July 2025, following Geoff Jennett’s departure at the end of April due to ‘strategic differences’.
The REIT declared a cash-backed final dividend of 61.50 cents per share for the year ended 31st March 2025, taking the full year dividends to 123.89 cents per share – 5.9% higher than the prior year. Its full year distributable income per share increased by 4.9% with its net asset value (NAV) per share having increased 20.9%.
The Company says its key metrics improved during the period with its South African assets delivering a steady outperformance and its US portfolio remaining robust. It also achieved a portfolio restructuring and strengthening with its entry into the Polish real estate market.
Emira traded out R2.8 billion of non-core assets in South Africa, with a further R628.3 million of sales under contract at yearend. It simultaneously deployed approximately R2 billion (€100 million) of proceeds into its international strategy, successfully concluding two tranches of investment in DL Invest in Poland, with the balance reducing debt.
The Company’s international investments now comprise 38% of its portfolio with 16.6% in the US and 21.2% in Poland.
“Emira achieved a major restructure while maintaining and improving our balance sheet strength. The business remains well-capitalised with a prudently managed financial position that is comfortably within all covenants,” says Greg Booyens, CFO of Emira Property Fund.
The REIT’s South African direct property portfolio comprises 63 assets valued at R9.96 billion with its fair market value, adjusted for disposals, having increased 6.1%. Its commercial portfolio comprises 42 properties balanced across office (22%), urban retail (46%), and industrial (13%) with its residential portfolio (19%) comprising 3 347 units across 21 properties including assets owned by Transcend Residential Property Fund, a wholly owned subsidiary.
Commercial vacancies decreased from 4.1% to 3.6% post period, improving from a fleeting increase to 6.4% at yearend caused by a single industrial tenant relinquishing and then reoccupying its space. Vacancies in all sectors were below national sector benchmarks with its office vacancies having reduced from 10.9% to 8.4%. Its retail vacancies remained low at 4.2% and its industrial portfolio vacancies reduced to 0.5% post period from 0.7%. Residential portfolio occupancies remained high at 97.2%, excluding units for sale.
Emira invested R177.2 million in targeted upgrades, energy efficiency projects and refurbishments in South Africa.
Internationally, Emira invests indirectly through equity interests alongside specialist co-investors. In the United States, it holds stakes ranging between 45% and 49% in dominant, grocery-anchored centres with its US-based partner, The Rainier Group.
In Poland, Emira has a 45% equity interest in DL Invest Group, a Luxembourg-headquartered company that develops and manages logistics hubs, mixed-use offices, and retail parks.
In the US in December 2024, Emira and its co-investors successfully sold San Antonio Crossing at an 8.87% premium to book value. The US portfolio closed the financial year with 11 investments, which traded well with the continued resilience of the US retail real estate sector. These assets totalled R2.7 billion (USD145.4 million) and delivered R235.1 million in distributable income (FY2024: R222.6 million for 12 investments). The US assets reported vacancies of 4.6% (FY2024: 3.6%) and a weighted average lease expiry (WALE) of 4.2 years (FY2024: 5 years).
In August 2024, Emira acquired an initial structured stake in DL Invest and completed a second tranche of investment on 20th of March 2025, taking its total equity interest to 45%. Emira’s investment is structured for an attractive return profile including an annual cash yield of 7.2%, escalated annually by the Harmonised Index of Consumer Prices (HICP) for the European Area, but subject to a cap of 4% and a floor of 2%.
When Emira closed its financial year, DL Invest held a portfolio of 39 completed properties, valued at €689 million. The portfolio comprises 67% industrial and logistics assets, 22% mixed-use/office assets and 11% retail parks with a total vacancy of 3.1% and a stable WALE of 5.5 years. It also includes land and development assets of €173 million.
Emira’s interest cover improved to 2.5 times with its loan-to-value (LTV) ratio improving to 36.3% from 42.4%. GCR reaffirmed the REIT’s long-term and short-term credit ratings of A(ZA) and A1(ZA) respectively, with a stable outlook.
