Emira Property Fund (JSE: EMI) reported robust results for the year ended 31 March 2026, declaring a cash-backed second-half dividend of 64.61cps, taking its total dividend for the 2026 financial year to 129.01cps, which is 4.1% higher than the prior year.
Net asset value per share increased 1.3% over the twelve-month period, mainly driven by value gains from Emira’s investment in Poland and its South African portfolio, but these were largely 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 geographic markets locally and abroad. In South Africa, at year-end, it held direct commercial — retail, industrial, office — and residential property portfolios, as well as an equity interest in listed REIT SA Corporate Real Estate (JSE: SAC). Internationally, Emira invests indirectly alongside specialist co-investors. At the close of its financial year, it held a ~49% equity stake in six dominant, grocery-anchored centres in the US alongside 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 higher-yielding, value-accretive 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 operational metrics across our diversified portfolio,” reports Day, noting that Emira’s solid second half was supported by a more stable domestic macroeconomy with improved business confidence and no load shedding.
“Emira has entered our 2027 financial year well positioned, despite elevated geopolitical risks that have renewed upward inflationary and interest rate pressures. 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 capitalised.”
Emira’s loan-to-value ratio improved to 30.2% from 36.3% at the prior year end and its interest cover ratio improved to 2.8 times. By deploying proceeds from its disposal programme to repay debt and into interest-bearing cash deposits, as well as replacing some settled debt with lower-cost Euro-denominated funding, Emira reduced its total net finance costs by 18.3%. GCR Ratings reaffirmed Emira's long-term and short-term credit ratings of A(ZA) and A1(ZA) respectively, with a stable outlook.
Emira's well-tenanted South African direct portfolio comprised 48 properties valued at R8.9bn. The portfolio's fair market value, adjusted for disposals, increased 2.1%.
The commercial portfolio of 35 assets is balanced across urban retail (58%), office (27%) and industrial (15%), with improved performance metrics across all sectors. Net property income grew 3% in Emira’s commercial portfolio as it stood at year-end, but disposals during the year contributed to an overall 13.2% decline compared to the prior year.
Commercial portfolio vacancies decreased, improving to 4.1% from 6.4%. Vacancies across all sectors remained below national benchmarks, reflecting sustained tenant demand and effective leasing.
In Emira’s largely grocer-anchored neighbourhood centre portfolio, whose crown jewel is the dominant 91,000sqm-plus regional Wonderpark in Pretoria North, total retail vacancies held steady at 4.2%. Rental reversions, however, lingered in negative territory, declining from -1.2% to -2.9%.
Total weighted average reversions in the primarily P- and A-grade office portfolio improved significantly, from -9.3% to -0.6%. Office vacancies, however, edged up from 8.4% to 9.9% mainly due to a single sizeable vacancy at Menlyn Corporate Park.
Showing robust tenant appeal and near-full occupancy, vacancies in Emira’s industrial portfolio improved to near zero (0.7%). The portfolio predominantly comprises single-tenant light industrial and warehouse properties, as well as multitenant midi- and mini-unit industrial parks. Rental reversions in the portfolio also improved, from -9.9% to -6.6%.
The residential portfolio (12%) comprises 1,970 units across 13 properties, focused on quality, value-oriented, high-demand suburban rental units.
Residential portfolio vacancy held steady at the low 3.5% mark including units for sale, a favourable level compared to the Rode benchmark. The solid underlying demand for these units is driven by the balance of affordability and quality of life offered, with the average unit rental around R6,000pm.
As in the commercial portfolio, the impact of bulk and individual unit sales over 12 months saw residential net property income decrease by 35.2%.
During the year, Emira disposed of seven non-core commercial properties for total proceeds of R479.0m. Its programme of residential sales progressed, with a further 1,375 units transferring, generating gross proceeds of R810.8m. A further R1.1m of properties, comprising seven commercial assets and 538 residential units, were held for sale at year-end.
Emira allocated R128.6m to targeted upgrades across its portfolio, enhancing asset performance while protecting and prolonging asset value. With the exception of R20.7m of solar PV projects and electrical upgrades in the residential portfolio, most of the capital expenditure (R107.9m) prioritised expansion projects in the commercial portfolio to better service tenant needs 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 programme and realise value at favourable pricing, closing the period at 6.9% of SA Corporate ordinary shares in issue, valued at R623.6m. SA Corporate contributed R43.8m to the year's distributable income.
"Both investments align with Emira's strategy of deploying capital into meaningful, value-accretive opportunities, including acquiring stakes in quality undervalued listed and unlisted assets,” says Day.
Emira's US portfolio closed the year with six investments totalling 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 during the year at a 0.9% premium to appraised value. Post-period, on 11 May 2026, a further asset was disposed, reducing the US exposure to five equity investments.
Strong leasing activity and consistent tenant demand improved vacancy levels to 2.3%, down from 4.6%. Rental reversions remained flat at 0.6%. The remaining portfolio held its value, supported by sound property fundamentals and a high-quality tenant base.
The US equity investments contributed R145.9m to Emira's full-year distributable income, down from the prior year as a result of the disposals and a stronger ZAR to the USD. Emira has applied a 95% payout ratio to distributable income from its US investments.
This is the first time that Emira held its full 45% stake in DL Invest for an entire 12-month period, which earned Emira R146.2m for the year’s distributable income.
“DL Invest has shown consistent and disciplined strategic execution since Emira’s investment. It is supported by a resilient economy, a positive real estate market and favourable sector fundamentals, especially in the logistics and industrial property sectors. We’ve 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. It’s development pipeline, with a combined carrying value of EUR215.5m, continues to provide a platform for future growth.
Emira provided its executive directors’ KPI for distributable earnings as 133.53cps for the 12 months to 31 March 2027.
"We remain focused on delivering meaningful growth and long-term value for all shareholders," concludes Day.
.../endsABOUT EMIRA PROPERTY FUND:Emira is a South African Real Estate Investment Trust (REIT) with a diversified portfolio across sectors and geographies. In South Africa, it holds direct commercial – retail, industrial, office – and residential property portfolios, as well as stakes in two listed REITs: SA Corporate Real Estate and Octodec Investments. Internationally, Emira invests indirectly through equity interests alongside specialist co-investors. In the US, it holds influential stakes, ranging between 45% and 49%, in six dominant, grocery-anchored centres with US-based partner The Rainier Group. In Poland, Emira has a 45% equity stake in DL Invest, a Luxembourg-headquartered developer and long-term investor in industrial and logistics centres, mixed-use offices, and retail parks located across Poland.
