Emira reports reduced interim vacancy

Emira Property Fund, a diversified trust and property group, has shown resilience in the face of challenges brought about by the pandemic, as CEO Geoff Jennett discusses the company's recent achievements and future prospects in a recent interview with CNBC Africa. The company has managed to reduce vacancies in its direct South African portfolio and increase tenant retention rates to 86%. Moreover, Emira Property Fund has boosted its dividend by 8.8% for the interim period, indicating a positive outlook for the company's financial performance. One of the key changes driving the decision to pay an interim dividend, according to Jennett, is the heightened confidence in the business's ability to navigate the uncertainties created by the pandemic. Despite ongoing challenges and disruptions, the company has managed to maintain a strong financial position, allowing them to distribute profits to shareholders. The company's success can also be attributed to its diversified portfolio, which includes retail, office, and industrial properties. By spreading their investments across different sectors, Emira has been able to mitigate risks associated with sector-specific downturns and capitalize on the strengths of each market segment. This approach has resulted in an overall vacancy rate of 6.1%, showing an improvement from the previous six months. Jennett highlighted the importance of conservative gearing and hedging strategies in managing the impact of rising interest rates on the company's finances. With a loan-to-value ratio of 41.8% and a significant portion of interest rate exposure hedged, Emira Property Fund is well-positioned to weather any fluctuations in interest rates that may arise in the near future. In terms of growth opportunities in the South African market, Jennett pointed out the challenges posed by infrastructure constraints and oversupply in the office sector. However, he remains optimistic about the potential in retail and industrial properties, noting that these segments are showing resilience and steady performance. Emira Property Fund is eyeing acquisitions, particularly in the US market, where the economy is robust and offers opportunities for portfolio diversification. Looking ahead, Jennett emphasized the importance of government actions in boosting business confidence in the property sector. The potential lifting of the state of emergency and clear signals of economic stability are crucial factors that can drive investments and stimulate growth in the industry. As Emira Property Fund continues to navigate the evolving landscape of the real estate market, the company remains focused on capitalizing on opportunities for growth and expansion. With a strategic approach to asset management and a commitment to innovation, the company is poised to achieve continued success in the coming years.