Emira Property Fund has issued an operational update post the release of its financial results for the six months ended 30^th September 2024 released in mid-November 2024.

At the end of January 2025, total vacancies across its portfolio had increased to 6.8% (by GLA) primarily due to its tenant, RTT, reducing space at Acsa Park and the impact of disposals over the period with its weighted average lease expiry (WALE) remaining unchanged at 2.8 years, average annual lease escalations registering at 6.4% with 77.5% (by gross rental) of mature leases having been retained. The REIT’s average weighted average total reversions for the period improved to an overall -4.2% as opposed to September 2024’s -6.8%.

Its retail portfolio, consisting of 12 assets of mainly grocer-anchored neighbourhood and community shopping centres, recorded an increase in vacancies at the end of the period to 4.4% from September 2024’s 4.2%, a WALE of 3.1 years (September 2024: 3.2 years) with 81.9% (by gross rental) of maturing leases retained, and total weighted average reversions for the period having improved to -0.9% (September 2024: -4%).

Emira’s 10 office assets, which are primarily P- and A-grade, reported an increase in vacancies to 9.7% (September 2024: 9.4%) with the portfolio’s WALE improving to 2.6 years (September 2024: 2.5 years). The Fund retained 57% (by gross rental) of maturing leases during the period with total weighted average reversions improving to -5.8% (September 2024: -9.6%).

Its 21 industrial assets, which are split between single-tenant light industrial and warehouse facilities; multi-tenant midi- and mini-unit industrial parks, recorded an increase in vacancies at the end of the period to 7.8% (September 2024: 0.7%) due to RTT reducing space requirements. The portfolio’s WALE decreased to 2.7 years (September 2024: 2.9 years) with 73.2% (by gross rental) of maturing leasing retained. Total weighted average reversions for the period declined to -10.8% (September 2024: -7.9%).

Emira’s residential portfolio, comprising 3 389 units (September 2024: 3 588) in Gauteng and Cape Town, recorded vacancies of 4% (by units) as at 31^st January 2025 (September 2024: 5%) due to held-for-sale units. If excluded, vacancies would reflect 2.9%. 386 residential units were transferred during the period, realising gross disposal proceeds of R312.9 million.

During the reporting period, 26 assets, comprising 5 retail properties, 10 office buildings, and 11 industrial parks, were transferred out of the Fund, generating total gross proceeds of R2.4 billion.

In the USA, Emira holds 11 equity investments in grocery-anchored, open air power centres. With its co-investors, the Fund successfully completed the sale of San Antonio Crossing, of which Emira held a 49.5% equity stake, with gross proceeds of US$ 28.2 million at an 8.87% premium to book value on transfer in mid-December 2024.

As at 31^st January 2025, vacancies across the 11 assets in the US increased to 3.9% (September 2024: 3.5.

On the 17^th of March 2025, Emira exercised its Tranche 2 Subscription Option in DL Invest Group, the Luxembourg-headquartered Polish property developer and investor, and on the 20^th of March 2025, subscribed for an additional 113 new B Shares and 113 x 9% Loan Notes, each linked to a B Share to form a Linked Unit, increasing Emira’s stake to 45% of the total DL Invest shares with the total consideration for the Tranche 2 Subscription €44.5 million, comprising €8.9 million for the B Share subscription and €35.6 million for the Loan Notes. The Tranche 2 Subscription was funded through a new five-year Euro debt facility with a fixed interest rate of 4.71%.

As at 31^st of December 2024, the DL Invest Group holds a portfolio of 38 assets with an estimated value of approximately €670 million comprising logistics and industrial assets (67% by value), retail assets (11%) and mixed-use properties (22%). Total vacancies across the DL invest portfolio increased to 3.2% at the end of December 2024, while the WALE remained at 5.5 years.

As at the 28^th of February 2025, Emira had unutilised debt facilities of R1.09 billion with cash-on-hand of R349.2 million which was bolstered in March 2025 by a new 5-year €45 million term debt facility from RMB to fund the DL Invest Tranche 2 Subscription.

Its loan-to-value (LTV) ratio decreased to c.34.1% (September 2024: 42%) due to disposal proceeds received on assets transferred post-September 2024 being used to reduce debt. Following the DL Invest Tranche 2 Subscription, Emira’s LTV increased and is expected to close at c.36% to 37% by the 31^st of March 2025.

The Fund says it is on track to exceed its objectives for FY2025 with its results for the full year ended 31^st March 2025 to be released in late May 2025.