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Unaudited condensed consolidated interim financial results for the 6 months ended 30 September 2024, dividend decl
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: 3789005E23C6259EAE70
(Approved as a REIT by the JSE)
("Emira" or the "Fund" or the "Company")
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS
ENDED 30 SEPTEMBER 2024 AND DIVIDEND DECLARATION
Nature of business
Emira Property Fund Limited is a Real Estate Investment Trust ("REIT") domiciled in South Africa and
together with all its subsidiaries, owns a portfolio of property investments which are diversified both
sectorally and geographically. Emira continues to deliver returns throughout the cycles by way of its
risk-mitigating sectoral and geographical diversification strategy.
The Fund has direct property holdings as well as indirect property investments, through equity
investments in property owning companies with specialist third-party co-investors.
In South Africa, the Fund owns a direct portfolio of properties diversified across the retail, industrial,
office and residential sectors, which it segregates between the Commercial Portfolio (the retail,
industrial and office properties) and the Residential Portfolio (the residential properties) respectively.
The Residential Portfolio includes the properties of Transcend Residential Property Fund (Pty) Ltd, a
specialist residential property company wholly owned by Emira which is focused on value-oriented,
good-quality suburban units.
Emira has international exposure through its indirect property investments in the United States of
America (the "USA" or "US") and Poland. In the USA Emira has equity interests in 12 grocery-anchored
dominant value-oriented power centres, held together with its US-based partner, The Rainier
Companies. In Poland, Emira has an effective 25% equity interest in DL Invest Group S.A. ("DL Invest"),
a Luxembourg-headquartered property company which develops and holds logistics centres, mixed
use/office centres, and retail parks across Poland.
Commentary
These results are for the six months ended 30 September 2024 (the "current reporting period") and
are compared to the six months ended 30 September 2023 (the "prior period" or "comparative
period").
Distributable earnings for the current reporting period is R332,0m compared to R310,7m for the prior
period. After taking the adjustments to reflect the cash backed position into account, Emira's Board
of Directors (the "Board") has declared an interim dividend of 62,39 cents per share for the current
reporting period (September 2023: 61,74 cents). This amounts to a period-on-period increase of 1,1%.
The local portfolio has performed well, with most key performance indicators exceeding expectations.
While business confidence has seen a boost following the national election results, certain obstacles
remain. Elevated vacancy rates and recent economic pressures have introduced a lag effect that is
likely to moderate real growth in the near term however, the improved sentiment is expected to
support stronger returns over the long term.
The Fund's US investments have performed in line with expectations, although the period-on-period
growth appears inflated due to the once-off negative items recorded in the prior period. Overall, the
US portfolio remains stable and is supported by the enduring strength of the US economy.
The first tranche of Emira's investment into DL Invest was successfully concluded on 27 August 2024.
This investment enhances Emira's diversification strategy by providing access to the growing Polish
economy, which features distinct drivers and opportunities compared to South Africa. Poland's
economy is projected to grow significantly, supported by strong consumer spending, infrastructure
development, and favourable macroeconomic conditions.
Interest rates remained persistently high throughout most of the reporting period, with the
anticipated easing of rates starting later than expected. This delay, combined with the runoff of some
of the Fund's USD cross-currency interest rate swaps, has resulted in funding costs being higher than
initially projected.
Recognising the unpredictability of market conditions, the Company is committed to focusing on
fundamental principles and elements that remain within its control. This approach involves prudent
risk management, diligent assessment of market dynamics, and a steadfast dedication to operational
excellence. By prioritising these fundamentals, Emira aims to navigate through challenging
environments effectively while positioning itself to capitalise on opportunities that may arise.
Financial summary
The reviewed condensed consolidated financial results for the six months ended 30 September 2024,
as compared to the six months ended 30 September 2024 ("comparative period"), are set out below:
• Directly held portfolio revenue, decreased by 1,7% to R928,6 million compared to R944,6 million
for the comparative period;
• Headline earnings per share, increased by 2 818,9% to 213,26 cents compared to 7.31 cents for
the comparative period;
• Earnings per share, increased by 1 624,1% to 300,70 cents compared to 17,44 cents for the
comparative period;
• Net asset value per share increased by 14,2% to 1 945,5 cents compared to 1 703,1 cents for
the comparative period;
• Distributable earnings, increased by 6,9% to R332,0 million compared to R310,7 million for the
comparative period; and
• Total dividend declared, increased by 1,1% to 62,39 cents per share compared to 61,74 cents
per share for the comparative period.
Dividend declaration
The Board has approved, and notice is hereby given that a final gross dividend of 62,39 cents per share
has been declared (September 2023: 61,74 cents), payable to the registered shareholders of Emira on
Monday, 9 December 2024. In making its decision on whether to pay out a dividend and the quantum
thereof, the Board has assessed the Company's solvency and liquidity position, considering the
Company's current position together with forecasts.
The issued share capital at the declaration date is 522 667 247 listed ordinary shares. The source of
the dividend comprises net income from property rentals, income earned from the Company's equity-
accounted investments, interest earned on loans receivable and interest earned on cash on deposit.
Please refer to the condensed consolidated statement of comprehensive income for further
information.
Last day to trade cum dividend Tuesday, 3 December 2024
Shares trade ex-dividend Wednesday, 4 December 2024
Record date Friday, 6 December 2024
Payment date Monday, 9 December 2024
Share certificates may not be dematerialised or rematerialised between Wednesday, 4 December
2024 and Friday, 6 December 2024, both days inclusive.
In accordance with Emira's status as a REIT, shareholders are advised that the dividend meets
the requirements of a "qualifying distribution" for the purposes of section 25BB of the Income
Tax Act, No. 58 of 1962 ("Income Tax Act"). Accordingly, qualifying distributions received by local
tax residents must be included in the gross income of such shareholders (as a non-exempt dividend
in terms of section 10(1)(k)(aa) of the Income Tax Act), with the effect that the qualifying distribution
is taxable as income in the hands of the shareholder. These qualifying distributions are, however,
exempt from dividend withholding tax in the hands of South African tax resident shareholders,
provided that the South African resident shareholders have provided the following forms to their
Central Securities Depository Participant ("CSDP") or broker, as the case may be in respect of
uncertificated shares, or the transfer secretaries, in respect of certificated shares:
a) a declaration that the dividend is exempt from dividends tax; and
b) a written undertaking to inform the CSDP, broker or the transfer secretaries, as the case may be
should the circumstances affecting the exemption change or the beneficial owner cease to be
the beneficial owner, both in the form prescribed by the Commissioner for the South African
Revenue Service. Shareholders are advised to contact their CSDP, broker or the transfer
secretaries, as the case may be to arrange for the abovementioned documents to be submitted
prior to payment of the dividend, if such documents have not already been submitted.
Qualifying dividends received by non-resident shareholders will not be taxable as income and instead
will be treated as ordinary dividends, but which are exempt in terms of the usual dividend exemptions
per section 10(1)(k) of the Income Tax Act. Any distribution received by a non-resident from a REIT
will be subject to dividend withholding tax at 20% unless the rate is reduced in terms of any applicable
agreement for the avoidance of double taxation ("DTA") between South Africa and the country of
residence of the shareholder. Assuming dividend withholding tax will be withheld at a rate of 20%, the
net amount due to non-resident shareholders will be 49,91200 cents per share. A reduced dividend
withholding tax rate in terms of the applicable DTA, may only be relied on if the non-resident
shareholder has provided the following forms to their CSDP or broker, as the case may be, in respect
of the uncertificated shares, or the transfer secretaries, in respect of certificated shares:
a) a declaration that the dividend is subject to a reduced rate because of the application of a DTA;
and
b) a written undertaking to inform their CSDP, broker or the transfer secretaries, as the case may
be should the circumstances affecting the reduced rate change or the beneficial owner cease to
be the beneficial owner, both in the form prescribed by the Commissioner for the South African
Revenue Service. Non-resident shareholders are advised to contact their CSDP, broker or the
transfer secretaries, as the case may be to arrange for the abovementioned documents to be
submitted prior to payment of the dividend if such documents have not already been submitted,
if applicable.
Local tax resident shareholders as well as non-resident shareholders are encouraged to consult their
professional advisors should they be in any doubt as to the appropriate action to take.
The Company's tax reference number is 9995/739/15/9.
Short form announcement
This short form announcement is the responsibility of the Board, is only a summary of the information
in the full announcement released on SENS and therefore does not contain full or complete details.
Any investment decisions by investors and/or shareholders should be based as a whole on
consideration of the unaudited condensed consolidated interim results for the six months ended 30
September 2024, which were released on SENS and may be downloaded from
https://senspdf.jse.co.za/documents/2024/jse/isse/emie/Nov24.pdf or may be requested via email
from sponsor@questco.co.za. The full announcement is also available on the Company's website at:
https://emira.co.za/financial-reporting/ .
Registered office: 1st Floor, Block A, Knightsbridge, 33 Sloane Street, Bryanston, 2191
Bryanston
13 November 2024
Equity and debt Sponsor
Questco Corporate Advisory Proprietary Limited
Ground Floor, Block C, Investment Place, 10th Road, Hyde Park, 2196
Date: 13-11-2024 11:15:00
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