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Reviewed condensed consolidated preliminary financial results for the year ended 30 June 2022 and 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
(Approved as a REIT by the JSE)
(“Emira” or “the Fund” or “the Company”)
REVIEWED CONDENSED CONSOLIDATED PRELIMINARY FINANCIAL RESULTS FOR THE YEAR ENDED
30 JUNE 2022 AND DIVIDEND DISTRIBUTION DECLARATION
Nature of business
Emira is a diversified Real Estate Investment Trust (“REIT”), with a property portfolio of predominantly
South African assets, and a component of offshore assets in the USA. In line with its strategic
objectives, Emira’s property portfolio spans multiple sectors, namely office, retail, industrial and
residential. The Company is focused on growing the quality and value of its portfolio of property
investments, in order to sustain and enhance its distribution growth to shareholders.
Commentary
Distributable earnings for the year ended 30 June 2022 improved by 3,8% to R673,9m. 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 63,20 cents per share for the six months to 30 June 2022 (June
2021: 66,65 cents). This is a period-on-period decrease of 5,2%, bringing the full-year dividend per
share to 119,79 cents (2021: 118,65 cents), an increase of 1,0%.
The sound performance achieved for the year is attributable to decisions taken over recent years on
the strategic direction of the Fund, with active and hands-on asset management, focusing on basic
property fundamentals and performing them with excellence. While there was continued uncertainty
throughout the year due to the lingering effects of COVID-19, the July 2021 unrest, rising inflation
fears and the Russia/Ukraine conflict, it has been pleasing to see how Emira’s investments have
withstood the pressure.
The steady performance of the local industrial and retail sectors has countered the strained office
market, while the Fund’s exposure to the stable economy of the US has provided a buffer to the low
growth South African environment. Emira’s residential investments have also proved stable, and while
growth in income has been marginal, it is pleasing to note that vacancies have decreased substantially.
Financial summary
The reviewed condensed preliminary financial results for the year ended 30 June 2022, as compared
to the year ended 30 June 2021 (“comparative period”), are set out below:
• Directly held portfolio revenue decreased by 0.5% to R1 474,3 million compared to R1 481,1
million for the comparative year;
• Headline earnings per share decreased by 14,6% to 160,72 cents compared to 188,24 cents for
the comparative period;
• Earnings per share increased by over 107,9% to 200,39 cents compared to 96,38 cents for the
comparative period;
• Net asset value per share increased by 7.3% to 1 628,6 cents compared to 1 518,3 cents for the
comparative period;
• Distributable earnings increased by 3,8% to R673,9 million compared to R649,1 million for the
comparative period; and
• Dividend declared increased by 1,0% to 119,79 cents per share compared to 118,65 cents per
share for the comparative period.
Unmodified review opinion
These condensed consolidated preliminary financial results for the year ended 30 June 2022 have
been reviewed by Ernst & Young Inc., who have expressed an unmodified review conclusion. The
auditor’s report does not necessarily report on all of the information in the result announcement.
Shareholders are therefore advised that in order to obtain a full understanding of the nature of the
auditor’s engagement they should obtain a copy of the auditor’s report together with the
accompanying financial information from the issuer’s registered office. The distribution statement and
commentary was not reviewed.
Dividend distribution declaration
The Board has approved, and notice is hereby given that a final gross dividend of 63,20 cents per share
has been declared (June 2021: 66,65 cents), payable to the registered shareholders of Emira on
Monday, 12 September 2022. 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, taking into
account 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.
Last day to trade cum dividend Tuesday, 6 September 2022
Shares trade ex-dividend Wednesday, 7 September 2022
Record date Friday, 9 September 2022
Payment date Monday, 12 September 2022
Share certificates may not be dematerialised or rematerialised between Wednesday, 7 September
2022 and Friday, 9 September 2022, 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 50,56000 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 as a result 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 preliminary financial results for the year ended
30 June 2022 which may be downloaded from
https://senspdf.jse.co.za/documents/2022/jse/isse/EMIE/June22Prov.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
17 August 2022
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: 17-08-2022 11:41:00
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