James Day
Emira Property Fund
CEO
Emira Property Fund’s operational update to 31 August 2025 shows a well-diversified portfolio navigating a normalising property market with steady progress. Although sectoral dynamics vary, the group’s disciplined approach to capital management, active asset recycling, and strategic offshore partnerships continues to support its performance and forward momentum into FY26.
Retail: Margins tighten as consumer headwinds persist
Emira’s retail portfolio remains anchored by dominant and convenience-focused centres, although softer trading conditions are evident. Retail vacancies increased to 5.1% (March 2025: 4.2%), reflecting ongoing pressure on discretionary spending and leasing delays among some smaller tenants. Lease expiry exposure remains well-managed, with a weighted average lease expiry (WALE) of 3.1 years unchanged over the period, while an impressive 93.5% of maturing leases (by gross rental) were successfully retained.
However, rental reversions decreased to -3.3% (March 2025: -1.2%), indicating ongoing rental renewal pressure amid competitive market conditions. The 12-asset portfolio, mainly made up of grocer-anchored neighbourhood and community centres, continues to exhibit defensive qualities. Its flagship property, Wonderpark in Pretoria North — at 91,038 m², one of South Africa’s largest regional centres — remains a key asset, providing scale, consistent foot traffic, and tenant demand.
Despite slight increases in vacancy and negative reversions, Emira’s retail assets continue to attract high tenant retention and stable trading densities, a testament to the quality of its centres and proactive leasing strategies.
Office: Stability amid sectoral headwinds
The office sector continues to face cyclical challenges, marked by low demand and a surplus of supply; yet, Emira’s performance within this segment demonstrates cautious exposure and disciplined leasing practices. Vacancies increased slightly to 8.8% (March 2025: 8.4%), while the WALE remained stable at 2.5 years.
Encouragingly, weighted average reversions improved to -7.8% (March 2025: -9.3%), indicating tentative signs of stabilisation. Lease retention remained at 84.9% (by gross rental), a solid result given the challenging environment.
Emira’s 10-property office portfolio, mainly focused on P- and A-grade buildings, remains centred on well-located assets with excellent accessibility and modern amenities. The fund’s cautious approach — avoiding speculative development and maintaining strict cost control — continues to support portfolio resilience as the office sector seeks stability in occupancy and rents.
Industrial: Recovery accelerates with re-let success
Industrial remains Emira’s top performer for the period, reflecting the ongoing strength of logistics and warehousing demand. Sectoral vacancies improved sharply to 2.0% (March 2025: 7.9%), mainly driven by the RTT Group’s reoccupation of 15,840 m² at RTT Acsa Park, which it had vacated in the previous financial year.
The WALE rose to 2.8 years (March 2025: 2.6 years), with lease retention at 79.1% (by gross rental). Notably, rental reversions improved to -7.1% from -9.9%, highlighting a narrower gap between new and expiring leases as tenant confidence and industrial fundamentals strengthen.
The portfolio of 19 industrial properties, including light-industrial and multi-tenant parks, continues to benefit from strong occupier demand, especially in logistics-focused areas. This sector remains a key stabiliser of earnings for Emira and matches broader REIT trends favouring industrial assets.
Residential: Portfolio streamlined as sales progress
Emira’s residential platform is evolving, shifting its focus from ownership to capital realisation through selective disposals. As of 31 July 2025, the residential portfolio included 2,248 units (March 2025: 3,347), mainly situated in Gauteng and Cape Town.
Occupancy decreased to 94.4% (March 2025: 96.6%), although when excluding ‘for-sale’ units, the effective occupancy rate was higher at 95.9%. Collections against billings remained robust at 95.5%.
Sales momentum remains strong: 1,097 units were transferred during the period, realising R652.2 million in gross proceeds (before costs). A further 289 units, valued at R147.8 million, are under contract and expected to transfer by December 2025. The orderly disposal of non-core residential stock continues to unlock liquidity while aligning with Emira’s capital recycling objectives.
USA: Portfolio stable amid retail rationalisation
By 31 July 2025, Emira’s US portfolio consisted of 11 equity investments in grocery-anchored, value-oriented open-air power centres. Portfolio vacancies rose to 6.2% (March 2025: 4.6%), mainly because of the Joann store closure (56,162 sq ft) at Belden Park Crossing following its Chapter 11 bankruptcy filing.
Despite this, the portfolio continues to perform in line with expectations, underpinned by resilient tenant demand and high retention rates in its remaining centres.
In August 2025, Emira sold its equity stake in University Town Centre (UTC), resulting in net proceeds of $14.5 million (pre-tax). The sale, carried out at a slight premium to its March 2025 book value, provided liquidity and validated the underlying robustness of the US assets.
DL Invest Group SA (Poland): Strategic partnership strengthens
Emira’s 45% equity stake in DL Invest Group SA, the Luxembourg-headquartered Polish property firm, continues to provide diversification and growth. As of 30 June 2025, the DL Group owned 39 income-generating properties, valued at €687.5 million, alongside €181.6 million in land and development.
In terms of value, assets consist of 67% logistics and industrial, 11% retail parks, and 22% mixed-use and office spaces. Portfolio vacancies decreased to 2.9% (March 2025: 3.1%), and WALE stayed steady at 5.4 years.
During this period, DL Invest successfully issued a €350 million Eurobond, which was oversubscribed by institutional investors and listed on the Luxembourg Stock Exchange — a milestone that confirmed its market credibility and access to international capital.
Marking the first anniversary of Emira’s investment in August 2025, management expressed confidence in DL Invest’s execution and strategic alignment. The Polish logistics and industrial markets remain buoyant, positioning Emira for continued offshore growth through this partnership.
SA Corporate Investment and Capital Management
Consistent with its strategy of acquiring stakes in undervalued listed property companies, Emira has amassed 144.18 million SA Corporate Real Estate shares for R420.6 million (as at 31 August 2025). This strategic move improves the Fund’s income stream while utilising liquidity from recent disposals.
At the period-end, Emira reported R1.0 billion in unused debt facilities and R415.9 million in cash on hand, offering flexibility for future opportunities. The loan-to-value (LTV) ratio was 37.1% (March 2025: 36.3%), comfortably within target levels and indicating a prudent balance-sheet stance.
Outlook: Positioned for steady execution in FY26
Emira begins FY26 on a strong foundation. While sectoral performance varies with different demand patterns — industrial leading, retail and office stabilising, and residential rationalising — the Fund’s diversified portfolio and disciplined capital management remain key strengths.
Management continues to recycle capital strategically, strengthen liquidity, and optimise asset quality across regions. With clear visibility into stable earnings and expanding international exposure through DL Invest, Emira is on course to meet its FY26 goals, establishing itself as a resilient, opportunity-driven REIT in a transitioning market.