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Reviewed condensed consolidated financial results for the year ended 31 March 2024 and dividend declaration
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")
REVIEWED CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2024
AND DIVIDEND DECLARATION
Nature of business
Emira Property Fund Limited (the "Company") is a Real Estate Investment Trust ("REIT") domiciled in
South Africa and together with all its subsidiaries (the "Group" or the "Fund" or "Emira"), 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.
Commentary
These results are for the 12 months ended 31 March 2024 (the "current reporting period" or "FY24")
and are compared to the nine months ended 31 March 2023 (the "prior year" or "FY23"). The
shortened prior year is due to the Company changing its financial year-end in the prior reporting
period from 30 June to 31 March. Where required, variances have been disclosed, but given the
difference in the number of months between the current reporting period and the prior year, the
financial variances are abnormally distorted and are not like-for-like, specifically for profit or loss
related items.
Distributable earnings for FY24 is R622,1m compared to R558,0m for the nine-months ended 31
March 2023. After taking the adjustments to reflect the cash backed position into account, Emira's
Board of Directors (the "Board") has declared a final dividend of 55,28 cents per share for the six
months to 31 March 2024 (three months to 31 March 2023: 30,35 cents). The total dividend per share
for the year ended 31 March 2024 is 117,02 cents (nine-months ended 31 March 2023: 96,78 cents),
and while not comparable, is an increase of 20,9% from FY23.
The local portfolio has provided a robust operational performance, ahead of expectations. This can be
attributed to continued enhancement of key metrics, specifically the reduction of vacancies and
improved rent reversions.
While the Fund's US investments were impacted by certain larger tenant failures in the current
reporting period, the US portfolio remains stable and is underpinned by the enduring strength of the
US economy.
By strategically recycling capital, the Fund aims to optimise its portfolio composition, enhance overall
returns, and manage risk effectively. Although the disposal of the high-yielding Enyuka has reduced
distributable income in the short term, it aligns with the Fund's strategic objectives of capital recycling
and reducing risk which reflects a forward-looking approach aimed at maximising value for investors.
As interest rates have remained persistently high and have impacted the Fund's distributable income,
a portion of disposal proceeds (from Enyuka and individual property sales) have been temporarily
reinvested into debt, which has lowered gearing levels and helped to lessen the impact of higher
funding costs.
Operating in uncertain times, the Company remains committed to focusing on fundamental principles
and elements within its control. Prudent risk management, diligent assessment of market dynamics,
and a steadfast dedication to operational excellence are top priority, allowing Emira 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 year ended 31 March 2024, as
compared to the nine months ended 31 March 2023 ("comparative period"), are set out below:
• Directly held portfolio revenue, whilst not comparable, increased by 44,1% to R1 885 million
compared to R1 308 million for the comparative period;
• Headline earnings per share, whilst not comparable, decreased by 49,3% to 50,05 cents
compared to 97.26 cents for the comparative period;
• Earnings per share, whilst not comparable, decreased by 37,3% to 107,25 cents compared to
171,07 cents for the comparative period;
• Net asset value per share increased by 2,2% to 1 733,1 cents compared to 1 694,6 cents for the
comparative period;
• Distributable earnings, whilst not comparable, increased by 11,5% to R622,1 million compared
to R558,0 million for the comparative period; and
• Total dividend declared, whilst not comparable, increased by 20,9% to 117,02 cents per share
compared to 96,78 cents per share for the comparative period.
Dividend declaration
The Board has approved, and notice is hereby given that a final gross dividend of 55,28 cents per share
has been declared (March 2023: 30,35 cents), payable to the registered shareholders of Emira on
Monday, 01 July 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, 25 June 2024
Shares trade ex-dividend Wednesday, 26 June 2024
Record date Friday, 28 June 2024
Payment date Monday, 01 July 2024
Share certificates may not be dematerialised or rematerialised between Wednesday, 26 June 2024
and Friday, 28 June 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 44,22400 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 reviewed condensed consolidated financial results for the year ended 31 March
2024, which were released on SENS and may be downloaded from
https://senspdf.jse.co.za/documents/2024/jse/isse/emie/Apr24.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/
The condensed consolidated financial statements for the year ended 31 March 2024 were reviewed
by Moore Infinity Inc, who expressed an unqualified opinion thereon.
Registered office: 1st Floor, Block A, Knightsbridge, 33 Sloane Street, Bryanston, 2191
Bryanston
30 May 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Ground Floor, Block C, Investment Place, 10th Road, Hyde Park, 2196
Debt Sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited)
Date: 30-05-2024 09:19:00
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