JSE-listed Emira Property Fund is on track to achieve its objectives for the full 2026 financial year, the company highlights in a pre-close operational update for the four months ended July 31 together with other financial information up to the date of this announcement.

Emira’s commercial portfolio, comprising directly held local retail, industrial and office properties, performed in line with expectations for the period.

Portfolio vacancies improved to 4.6% (by gross letting average) from the previous quarter’s 6.4%, largely owing to the RTT Group reinstating 15 840 m² at RTT Acsa Park that had been relinquished in the prior financial year.

Tenant retention remains a priority, with 86.6% (by gross rental) of leases maturing during the period renewed.

Market rental growth continues to lag the fund’s contractual rental escalations, with weighted average total reversions for the period at -6.3%.

The fund’s weighted average lease expiry (WALE) remained stable at 2.8 years, with average yearly lease escalations broadly unchanged at 6.4% from 6.5% in the previous quarter.

Portfolio collections vs billings for the period were 95.7%.

During the period, the fund disposed of one industrial property, HBP Industrial Units, realising gross proceeds of R58.5-million.

In addition, disposals of two further properties, with aggregate gross proceeds of R251-million, are unconditional and are expected to transfer by December.

Retail vacancies increased to 5.1% from 4.2%, while the WALE is unchanged at 3.1 years and 93.5% (by gross rental) of maturing leases in the period were retained.

For retail, total weighted average reversions for the period have declined to -3.3% from 1.2%.

Office vacancies increased to 8.8% from 8.4%, while the WALE is unchanged at 2.5 years and 84.9% (by gross rental) of maturing leases in the period were retained.

For office, total weighted average reversions for the period improved to -7.8% from -9.3%.

Industrial vacancies improved to 2% from 7.9% owing to the RTT Group taking back 15 840 m² at RTT Acsa Park which they had vacated in the previous financial year; while the WALE improved to 2.8 years from 2.6 years and 79.1% (by gross rental) of maturing leases in the period were retained.

For industrial, the total weighted average reversions for the period have improved to -7.1% from -9.9%.

Meanwhile, the occupancy rate of the residential portfolio reduced to 94.4% (by unit) as at period end from 96.6% in the previous quarter. Collections vs billing were 95.5%.

Sales in the residential portfolio continued to progress well, with a further 1 097 units transferring during the period, generating total gross proceeds, before costs, of R652.2-million.

For the US portfolio, vacancies at the end of the period increased to 6.2% from 4.6%. Overall, the underlying US portfolio continues to perform in line with expectations.

In August, the fund disposed of its equity interest in University Town Center, realising net proceeds of $14.5-million, before capital gains tax and branch profits tax.

Emira also holds a 45% equity interest in Luxembourg-headquartered Polish property company DL Invest.

Total vacancies across the DL Group’s operating portfolio improved to 2.9% from 3.1%, while the WALE was stable at 5.4 years.

Emira says it is encouraged by DL Invest’s performance over the year, particularly its execution against strategy.

As at August 31, Emira had acquired 144.2-million ordinary shares in SA Corporate for an aggregate consideration of R420.6-million in a series of on-market transactions.

Emira says it has generated significant liquidity through its disposal programme and considers an investment in SA Corporate to be consistent with its investment strategy of acquiring interests in undervalued, quality assets.

As at August 31, the fund had unused debt facilities of R1-billion together with cash-on-hand of R415.9-million, anticipated to be bolstered once those properties currently under contract for disposal transfer.

The Fund's loan-to-value ratio at August 31 is 37.1%.

Emira expects to release its interim results for the six months ended September 30 on November 12.