Emira Property Fund reported strong results for the year ending 31 March 2026, declaring a cash-backed second half dividend of 64.61cps, bringing its total dividend for the 2026 financial year to 129.01cps, up 4.1% on last year.
Net asset value per share increased by 1.3% in the twelve month period, driven mainly by value gains from Emira's investments in Poland and its South African portfolio, but these were offset by a stronger ZAR against the USD and EUR at year end.
Emira is a South African real estate investment trust (REIT) with a diversified portfolio across multiple property sectors and geographical markets, both locally and abroad. In South Africa, at year-end, it had direct commercial – retail, industrial, office – and residential property portfolios, as well as an equity stake in listed REIT SA Corporate Real Estate (JSE: SAC). Internationally, Amira invests indirectly with specialist co-investors. At the end of its fiscal year, it had a ~49% equity stake in six major, grocery-based centers in the US with The Rainier Group, and a 45% equity stake in DL Invest, a Luxembourg-headquartered developer and long-term investor in industrial, logistics, mixed-use office and retail park assets across Poland.
James Day, CEO of Emira Property Fund, attributes the strong set of results to consistent strategic execution with the goal of recycling capital into high-yield, value-growth assets, driving ongoing portfolio optimisation, enhancing returns and delivering reliable long-term performance.
“The results show continued progress against Emira's key strategic objectives and improved operating metrics across our diverse portfolio“Emira's solid second half was supported by improved business confidence and a more stable domestic macroeconomy with no load shedding, Day reported.
“Despite elevated geopolitical risks, which have reignited inflation and interest rate pressures, Emira enters our 2027 financial year well positioned. Our diversified portfolio supports resilient returns across market cycles, our capital recycling strategy continues to unlock value, and our balance sheet is well managed and well capitalized“
Emira's loan-to-value ratio rose to 30.2% from 36.3% at the end of last year, and its interest cover ratio improved to 2.8 times. By deploying the proceeds from its settlement program into debt repayment and interest-bearing cash deposits, as well as replacing some settled debt with low-cost euro-denominated funding, Emira reduced its overall net finance costs by 18.3%. GCR Ratings affirmed Emira's long-term and short-term credit ratings of A (ZA) and A1 (ZA), respectively, with a stable outlook.
South African portfolio
Emira's well-tenanted South African direct portfolio comprised 48 properties worth R8.9bn. The fair market value of the portfolio, adjusted for disposals, increased 2.1%.
The commercial portfolio of 35 assets is balanced across urban retail (58%), office (27%) and industrial (15%), with superior performance metrics across all sectors. Net asset income across Amira's commercial portfolio increased by 3% at year end, but disposals during the year contributed to an overall decline of 13.2% compared to the previous year.
Commercial portfolio vacancies decreased, improving from 6.4% to 4.1%. Vacancies remained below national standards across all sectors, reflecting continued tenant demand and effective leasing.
Across Emira's largely grocery-based neighborhood center portfolio, whose crown jewel is the flagship 91,000-square-metre-plus Regional Wonderpark in Pretoria North, total retail vacancies remained steady at 4.2%. However, fare reversal remained in negative territory, decreasing from -1.2% to -2.9%.
There was a significant improvement in total weighted average return from -9.3% to -0.6%, mainly in the P- and A-grade office portfolio. However, office vacancies increased from 8.4% to 9.9%, mainly due to a large vacancy at Menlyn Corporate Park.
Vacancies across Emira's industrial portfolio improved to almost zero (0.7%), reflecting strong tenant appeal and almost full occupancy. The portfolio primarily consists of single-tenant light industrial and warehouse properties, as well as multi-tenant midi- and mini-unit industrial parks. Rental reversion across the portfolio also improved, from -9.9% to -6.6%.
The residential portfolio (12%) consists of 1,970 units across 13 properties, focused on quality, value-oriented, high-demand suburban rental units.
Residential portfolio vacancy including units for sale remained stable at a low 3.5% mark, which is a favorable level compared to the road benchmark. The solid underlying demand for these units is driven by a balance of affordability and quality of life, with the average unit rent being around R6,000 per month.
Like the commercial portfolio, residential net property income saw a 35.2% decline over 12 months due to the impact of wholesale and individual unit sales.
capital recycling
During the year, Amira disposed of seven non-core commercial properties for total proceeds of R479.0m. Its program of residential sales proceeded, with the transfer of 1,375 units, generating gross income of R810.8m. An additional R1.1m of properties, including seven commercial assets and 538 residential units, were put up for sale at the end of the year.
Emira allocated R128.6m for targeted upgrades across its portfolio, enhancing asset performance while protecting and expanding asset value. With the exception of R20.7m of solar PV projects and electrical upgrades in the residential portfolio, the majority of capital expenditure (R107.9m) prioritized expansion projects in the commercial portfolio to deliver better tenant service as well as implement operational and carbon reduction improvements.
Emira's equity interest in SA Corporate was subject to various transactions, both to deploy liquidity from its disposal program and to realize value at favorable pricing, closing the period on 6.9% of SA Corporate ordinary shares, valued at R623.6 million. SA corporates contributed R43.8m to the year's distributable income.
After year end, Emira acquired a 23.5% shareholding in Octodeck Investments.
“Both investments align with Emira's strategy to deploy capital into meaningful, value-accretive opportunities, including acquiring stakes in quality undervalued listed and unlisted assets.,” says Day.
US portfolio
Emira's US portfolio ended the year with six investments totaling R1.3bn (USD77.8m). Disposal activity in this portfolio continued, as Emira and its co-investors actively managed the portfolio by exiting five equity holdings at a 0.9% premium to the assessed value during the year. After the period, on 11 May 2026, another asset was disposed of, reducing US exposure across five equity investments.
Strong leasing activity and continued tenant demand reduced vacancy levels from 4.6% to 2.3%. Rental reversion remained steady at 0.6%. The value of the remaining portfolio is supported by strong property fundamentals and a high quality tenant base.
US equity investments contributed R145.9m to Emira's full-year distributable income, down from the previous year as a result of disposals and the stronger ZAR against the USD. Emira has applied a 95% payout ratio to distributable income from its US investments.
Poland: DL Invest
This is the first time that Emira held its full 45% stake in DL Invest for a full 12-month period, giving Emira a distributable income of R146.2m for the year.
“Since the Emira investment, DL Invest has shown consistent and disciplined strategic execution. This is supported by a resilient economy, a positive real estate market and favorable sector fundamentals, particularly in the logistics and industrial property sectors. We have established a strong foundation for our strategic partnership with DL Invest, creating long-term mutual value and access to future opportunities in Poland,” Day notes.
DL Invest's portfolio has grown to 42 income-generating properties and was valued at EUR808.7m at 31 December 2025, comprising 72% industrial and logistics, 18% mixed-use/office and 10% retail parks. Total vacancy was maintained at 3.2% with a stable weighted average lease expiry of 5.1 years. Its development pipeline, with a combined value of EUR215.5m, will continue to provide a platform for future growth.
Outlook
Emira provided its executive directors' KPI for distributable income of 133.53cps for the 12 months to March 31, 2027.
“We are focused on delivering meaningful growth and long-term value for all shareholders,” Day concluded.
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