Wrap Text
Pre-close operational update
EMIRA PROPERTY FUND LIMITED
Incorporated in the Republic of South Africa
(Registration number 2014/130842/06)
JSE share code: EMI ISIN: ZAE000203063
JSE bond company code: EMII
LEI Number: 3789005E23C6259EAE70
(Approved as a REIT by the JSE)
(“Emira”, “the Company” or “the Fund”)
PRE-CLOSE OPERATIONAL UPDATE
Shareholders and noteholders are referred to the Fund's full-year results announcement for the
year ended 31 March 2026 ("year-end results"), released on SENS on 27 May 2026. The
Company wishes to provide an update to investors regarding the operational performance of its
investments for 5-months ended 31 August 2026 ("the period"), together with other financial
information up to the date of this announcement.
SA direct local portfolio
Commercial portfolio (operational metrics for the period apply to 29 properties that are
held as at 31 August 2026)
During the period, the South African economy demonstrated resilience despite a modest growth
environment and heightened global uncertainty. While the market entered the period anticipating
an easing of funding costs, continuing tensions in the Middle East altered the inflation and interest
rate outlook, resulting in higher interest rates and increased uncertainty around their future
trajectory. These economic and geopolitical risks, together with elevated funding costs, weighed
on investment activity and sentiment. Despite these headwinds, the sector continued to
demonstrate resilience, underpinned by stable property fundamentals and improving operational
performance. Against this backdrop, Emira’s local commercial property portfolio performed in line
with expectations.
Vacancies across the total portfolio increased slightly to 4,3% (by GLA) at the end of the period
(March 2026: 4,1%). Tenant retention remains a key focus, with 88,2% (by gross rental) of leases
that matured during the period being retained (March 2026: 81,6%). The total rent reversion rate
for the period was -4,4%, with the outcome primarily determined by two specific leases concluded
during the period (March 2026: -3,7%).
The Fund's weighted average lease expiry ("WALE”) at the end of the period improved to 3,1
years (March 2026: 3,0 years), while the weighted average lease escalation remained the same
at 6,3% (March 2026: 6,3%).
Emira's experience by sector is as follows:
Retail:
Retail vacancies at the end of the period increased to 5,3% (March 2026: 4,2%), primarily
due to Pick n Pay reducing its footprint at Southern Sentrum, Bloemfontein, to 9 195 m²
as part of its national store optimisation strategy. Of the 4 533m² of space returned, 1
728m² has already been re-let to a new national tenant. The WALE decreased to 3,7 years
(March 2026: 3,9 years) and 94,5% (by gross rental) of maturing leases in the period were
retained (March 2026: 81,5%). Total reversion rate for the period improved to -0,2%
(March 2026: -2,9%).
Emira's retail portfolio of 9 properties (March 2026: 10 properties) consist mainly of grocer-
anchored neighbourhood and community shopping centres, the largest being
Wonderpark, a 91 189m² dominant regional shopping centre located in Karen Park,
Pretoria North.
Office:
Office vacancies at the end of the period improved to 7,7% (March 2026: 9,9%) mainly
due to the take up of space by various tenants at Menlyn Corporate Park. The WALE
remained the same at 2,4 years (March 2026: 2,4 years) and 74,7% (by gross rental) of
tenants were retained (March 2026: 70,9%). Total rent reversions for the period were
-8,6% (March 2026: -0,6%), mainly due to the renewal of a major 7-year lease at
Knightsbridge in Bryanston.
Emira's office portfolio consists of 7 properties (March 2026: 9 properties), the majority of
which are P- and A-grade properties. While office market fundamentals remain
challenging, leasing activity is showing signs of improvement, supporting a gradual
stabilisation in rental levels.
Industrial:
Industrial vacancies at the end of the period increased to 1,1% (March 2026: 0,7%). The
WALE improved to 3,1 years (March 2026: 2,6 years) and strong tenant retention was
maintained during the period, with a retention rate of 98,0% (by gross rental) (March 2026:
92,8%). Total rent reversions for the period improved to -2,2% (March 2026: -6,6%).
Emira's 13 industrial properties (March 2026: 16 properties) are split between single-
tenant light industrial and warehouse facilities and multi-tenant midi-unit and mini-unit
industrial parks.
Residential portfolio
The residential portfolio at 31 August 2026 consists of 1 737 units (March 2026: 1 970) located in
Gauteng (95% of units) and Cape Town (5% of units).
Vacancies at the end of the period for the residential portfolio (excluding any held-for-sale units)
improved marginally to 2,0% by units (March 2026: 2,1%).
Disposals
During the period, six properties in the commercial portfolio transferred out of the Fund,
generating total gross proceeds of R531,8m. These disposals comprise three industrial
properties, two office properties and one retail property. A further two properties being disposed
are unconditional and are expected to transfer by December 2026.
During the period 233 units in the residential portfolio transferred out of the Fund, realising total
gross disposal proceeds of R125,3m. A further 311 residential units being disposed are
unconditional and are expected to transfer by March 2027.
US portfolio
As at 31 August 2026, the US portfolio comprised of 5 equity investments in grocery anchored,
value orientated, open air power centres (March 2026: 6 properties). During the period, Emira
and its co-investors successfully completed the disposal of one property, Newport Pavilion, which
transferred on 8 May 2026. This disposal generated total gross proceeds for Emira of USD14,8m
(c. R242,7m), before closing costs, capital gains tax and branch profit tax.
During the period, an agreement was concluded for the disposal of a further investment, Summit
Woods, with transfer expected in October 2026. The transaction, at a premium of 8,1% to the
March 2026 book value, is anticipated to generate gross proceeds for Emira of USD21,3m (c.
R342,4m), before closing costs, capital gains tax and branch profit tax.
At the end of the period, vacancies across the remaining five US properties, including Summit
Woods, increased to 2,6% (March 2026: 2,3%).
DL Invest Group S.A ("DL Invest")
Emira holds a 45% equity interest in DL Invest, a Luxembourg-headquartered Polish property
company. Through its subsidiaries (collectively the “DL Group”), it develops and holds logistics
centres, mixed use/office centres, and retail parks across Poland and is strategically expanding
digital infrastructure as a segment through the potential development of data centres at select
locations in Poland.
As at 30 June 2026, the DL Group held a portfolio of 42 properties (excluding land and properties
under development), with a further logistics asset added in July 2026 following the completion of
a development. This portfolio consists of logistics/industrial properties (82% by GLA), retail
properties (6% by GLA), and mixed-use properties (12% by GLA). Total vacancies across DL
Invest’s portfolio improved to 3,1% (March 2026: 3,2%), while the weighted average unexpired
lease term (“WAULT”) reduced to 4,9 years (March 2026: 5,1 years).
DL Invest continues to perform well, underpinned by active asset management and disciplined
execution. The company is enhancing value across its existing portfolio while progressing a
pipeline of new developments, reinforcing the Fund’s confidence in its long-term growth prospects
and strategic partnership.
SA Corporate Real Estate Limited (“SA Corporate”)
As at 31 August 2026, Emira held a 6,9% interest in SA Corporate. The investment continues to
diversify Emira's earnings base, providing exposure to a well-diversified portfolio of resilient retail,
industrial and residential assets that deliver defensive income and attractive long-term growth
potential.
Investment in Octodec Investments Limited (“Octodec”)
As previously announced, Emira acquired an initial 23,6% interest in Octodec during April and
May 2026 for R1,05bn through a combination of on-market purchases and shares tendered
under its voluntary offer. Subsequent acquisitions during the period increased Emira's interest to
23,9% as at 31 August 2026.
Octodec is a diversified REIT with a substantial portfolio of residential, retail, office and industrial
assets concentrated in the Tshwane and Johannesburg metropolitan areas.
The investment is consistent with Emira's strategy of allocating capital to high-conviction, value-
accretive opportunities. It provides exposure to a quality South African property portfolio at an
attractive entry point, with the potential to enhance long-term shareholder returns.
Capital management and liquidity
As at 31 August 2026 the Fund had unutilised debt facilities of R1,9bn together with cash-on-
hand of c.R867,5m. This will be further bolstered once those properties currently under contract
for disposal, including Summit Woods in the USA, transfer.
The Fund's loan-to value ratio ("LTV") as at 31 August 2026 is c.31,3% (March 2026: 30,2%).
Conclusion
The Fund is currently on track to achieve its objectives for FY27.
Emira expects to release its interim results for the six-months ended 30 September 2026 on
Monday, 30 November 2026.
This information is the responsibility of the Directors and has not been reviewed or reported on
by our external auditors.
Bryanston
30 September 2026
Equity and Debt Sponsor
Questco Corporate Advisory
Date: 30/09/2026 03:00:00
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