JSE-listed Emira Property Fund says its local commercial portfolio has performed well in the five months ended August 31, with total vacancies across the portfolio having increased only marginally to 4.3% from 4.1% at the end of March.

This increase was owing to the impact of disposals made during the period, but tenant retention remains a strong priority for the group, with 87% of leases that matured during the period having been retained.

Six properties transferred out of the fund during the period, generating total gross proceeds of R446-million. These disposals included two retail properties: Park Boulevard in Durban and Makro in Johannesburg; and four industrial properties: 12/14 Winnipeg Avenue, 34/36 Director Road, and 98 Loper Road in Johannesburg, along with the HBP Commercial Unit in Pretoria.

An additional 20 properties are under contract for disposal and in various stages of the transfer process, which, once completed, will generate R1.9-billion in gross proceeds.

Emira’s weighted average total reversions for the five months under review were stable at an overall -3.1%.

The company’s weighted average lease expiry at the end of August improved to three years, while average yearly lease escalations were maintained at 6.5%.

Although collections for the period averaged 95.6%, Emira expects a 100% collection rate by the end of September.

Emira’s retail portfolio comprises 15 properties, mainly anchored by grocery outlets in neighbourhood centres, the largest being Wonderpark, in Pretoria.

The office portfolio consists of 20 properties, the majority of which are P- and A-grade properties.

Further, the company has 28 industrial properties split between single-tenant light industrial and warehouse facilities, as well as multi-tenant, midi- and mini-unit industrial parks.

Its residential portfolio comprises 3 612 units across Gauteng and Cape Town.

Emira also has 12 equity investments in grocery-anchored centres in the US.

The company has unused debt facilities of R300-million coupled with cash on hand of R144-million. Emira says its liquidity will be bolstered by the proceeds from disposals and that it is on track to achieve most of its objectives for the 2025 financial year.

Emira will release its results for the six months ended September 30 on November 14.