JSE-listed Emira Property Fund reported a strong set of results for the full-year ended March 31, with consistent strategic execution, accretive diversification and disciplined capital management.

The company declared a cash-backed final dividend of 61.50c apiece, taking the full-year dividends to 123.89c apiece, 5.9% higher than the prior year.

Its full-year distributable income per share increased by 4.9%.

Emira’s net asset value per share increased by 20.9% over the period, in a year of improved operational metrics and a considerable repositioning.

All Emira’s key metrics improved, with its South African assets delivering steady outperformance and the US portfolio remaining robust, the company points out.

Concurrently, it achieved meaningful portfolio restructuring and strengthening, with a strong entry into the Polish real estate market.

Through a synchronised asset rotation focus, Emira traded out of R2.8-billion of noncore assets in South Africa, where it had a further R628.3-million of sales under contract at year-end.

The company simultaneously redeployed about R2-billion of proceeds into its international strategy, successfully concluding two tranches of investment in DL Invest, with the balance used to reduce debt.

This strategic capital allocation enhances Emira’s diversification by adding exposure to Poland’s growing economy, supported by strong consumer demand, ongoing infrastructure investment and sound macroeconomic fundamentals, the company highlights.

International investments now comprise 38% of Emira’s portfolio, with the US accounting for 16.6% and Poland for 21.2%.

“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,” say Emira Property Fund CFO Greg Booyens.

Interest cover improved to 2.5 times and the loan-to-value ratio improved to 36.3% from 42.4%.

Emira’s South African direct property portfolio comprises 63 assets, valued at R9.96-billion.

The portfolio’s fair market value, adjusted for disposals, increased by 6.1%.

“We are pleased to report excellent performance across our South African direct property portfolio. While economic headwinds and soft property fundamentals have delayed real rental growth, recent improvements in the operating environment are encouraging,” COO Ulana van Biljon says.

Commercial vacancies decreased from 4.1% to 3.6% post period.

Office vacancies reduced from 10.9% to 8.4%. Retail vacancies remained low at 4.2% and the 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 the US, in December 2024, Emira and its co-investors sold San Antonio Crossing at an 8.87% premium to book value. The US portfolio closed the financial year with 11 investments, which the company says traded well, supported by the continued resilience of the country’s retail real estate sector.

These assets totalled R2.7-billion and delivered R235.1-million in distributable income.

In August 2024, Emira acquired an initial strategically structured stake in DL Invest and completed a second tranche of investment on March 20, taking its total equity interest to 45%.

The company will continue to execute its capital recycling strategy and strategically redeploy the proceeds into higher-yielding, value-accretive opportunities.

Emira also announced that nonexecutive director James Day has been appointed CEO, effective July 1.

He joined the board on October 1, 2023, and brings international and local experience in the listed property sector, with various prior financial management and audit roles in South Africa, the US and Australia.