Emira delivers growth as global strategy pays off

• Full-year dividend rises 4.1% as Emira delivers resilient earnings and strong cash-backed shareholder returns.
• South African portfolio vacancies improve while strategic capital recycling unlocks value and strengthens the balance sheet.
• Offshore investments in the US and Poland contribute strongly to income diversification and future growth.

Emira delivers resilient performance in challenging market

‍Emira Property Fund (JSE: EMI) has reported a strong set of results for the financial year ended 31 March 2026, demonstrating the benefits of its diversified portfolio strategy and disciplined capital allocation approach.

The South African REIT declared a cash-backed second-half dividend of 64.61 cents per share, taking its total dividend for the year to 129.01 cents per share, a 4.1% increase on the previous financial year.

Net asset value per share increased by 1.3%, supported by gains in both the South African and Polish portfolios. These gains were partially offset by the strengthening of the Rand against the US Dollar and Euro at year-end.

Emira's performance comes at a time when many property funds continue navigating economic uncertainty, elevated interest rates and changing tenant demand patterns.

Who is Emira?

‍Emira Property Fund is one of South Africa's most diversified real estate investment trusts, with exposure across multiple property sectors and international markets.

Its South African portfolio includes retail, industrial, office and residential properties, complemented by strategic listed property investments.

Beyond South Africa, Emira has built significant offshore exposure through:

• A roughly 49% stake in six dominant grocery-anchored shopping centres in the United States alongside The Rainier Group.
• A 45% interest in DL Invest, one of Poland's leading industrial, logistics and mixed-use property developers and investors.

This diversified model has become a key driver of earnings resilience and long-term growth.

CEO James Day: Strategy continues to deliver

‍Emira CEO James Day credited the results to the company's ongoing focus on portfolio optimisation, disciplined capital recycling and value-accretive investments.

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"The results show continued progress against Emira's key strategic objectives and improved operational metrics across our diversified portfolio," says Day.

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He notes that a more stable South African operating environment, improving business confidence and the absence of load shedding supported stronger performance during the second half of the year.

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"Emira has entered our 2027 financial year well positioned despite elevated geopolitical risks and renewed inflationary pressures. Our diversified portfolio supports resilient returns across market cycles, our capital recycling strategy continues to unlock value, and our balance sheet remains well managed and well capitalised."

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The group's financial position strengthened materially during the year, with:

• Loan-to-value improving from 36.3% to 30.2%
• Interest cover ratio increasing to 2.8 times
• Net finance costs declining by 18.3%
• GCR reaffirming Emira's A(ZA) and A1(ZA) credit ratings with a stable outlook

South African portfolio shows improving fundamentals

‍Emira's South African portfolio comprises 48 properties valued at approximately R8.9 billion. Adjusted for disposals, the portfolio's value increased by 2.1% over the year.

Commercial Portfolio

‍The commercial portfolio consists of 35 assets diversified across:

• Retail: 58%
• Office: 27%
• Industrial: 15%

While disposals reduced overall portfolio size, operational performance improved across all sectors. Commercial vacancies declined significantly to 4.1%, compared with 6.4% a year earlier, remaining below national market averages.

Retail Sector

‍Emira's retail portfolio remains anchored by dominant convenience and neighbourhood shopping centres, including Wonderpark in Pretoria North.

Retail vacancies remained stable at 4.2%, reflecting continued demand for grocery-led convenience centres.

Office Sector

‍The office portfolio delivered one of the strongest improvements during the year. Weighted average rental reversions improved dramatically from -9.3% to -0.6%, reflecting stabilising market conditions.

Office vacancies increased slightly to 9.9%, primarily due to a single large vacancy at Menlyn Corporate Park.

Industrial Sector

‍Industrial assets continue to outperform. Vacancies improved to just 0.7%, effectively full occupancy, highlighting the strength of logistics and light industrial demand.

Rental reversions also improved from -9.9% to -6.6%.

Residential Portfolio

‍Emira's residential portfolio comprises 1,970 units across 13 properties. Focused on affordable, quality suburban rental accommodation, the portfolio continues to benefit from robust tenant demand.

Vacancies remained exceptionally low at 3.5%, outperforming industry benchmarks.

With average rentals of around R6,000 per month, the portfolio is well positioned within the value-oriented residential market where affordability remains a key driver.

Capital recycling unlocks value

‍A cornerstone of Emira's strategy is the continuous recycling of capital from mature or non-core assets into higher-yielding opportunities.

During the year, Emira:

• Sold seven non-core commercial properties for R479 million
• Completed transfers of 1,375 residential units generating R810.8 million
• Held a further R1.1 billion of assets for sale at year-end

Importantly, the company reinvested R128.6 million into targeted upgrades across the portfolio.

These investments focused on:

• Commercial property expansion projects
• Tenant-driven enhancements
• Sustainability initiatives
• Energy efficiency improvements
• Solar PV installations

The group also actively managed its listed property exposure. Its investment in SA Corporate contributed R43.8 million to distributable income, while after year-end Emira acquired a strategic 23.5% stake in Octodec Investments.

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"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.

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US portfolio continues to deliver

‍Emira's United States portfolio remains an important source of diversified earnings. At year-end, the portfolio comprised six grocery-anchored shopping centre investments valued at approximately R1.3 billion (USD77.8 million).

Active portfolio management resulted in the disposal of five equity holdings during the year at prices slightly above appraised value. Operational metrics improved meaningfully:

• Vacancies reduced from 4.6% to 2.3%
• Tenant demand remained strong
• Property values remained stable
• Rental growth remained positive

The US portfolio contributed R145.9 million to distributable income despite the impact of asset sales and a stronger Rand.

Poland becomes a major growth engine

‍Emira's investment in Poland continues to emerge as one of the group's most successful strategic initiatives. For the first time, Emira benefited from a full 12 months of earnings from its 45% stake in DL Invest.

The investment contributed R146.2 million to distributable income during the year.

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Day believes the partnership offers significant long-term growth potential. "DL Invest has demonstrated consistent and disciplined execution since Emira's investment. It benefits from a resilient economy, favourable property market fundamentals and particularly strong demand in the logistics and industrial sectors."

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DL Invest's portfolio has expanded to:

• 42 income-producing properties
• Portfolio value of EUR808.7 million
• 72% industrial and logistics exposure
• Vacancy of only 3.2%
• Weighted average lease expiry of 5.1 years

The group also maintains a development pipeline valued at EUR215.5 million, providing a significant platform for future expansion.

Outlook: Positioned for sustainable growth

‍Despite ongoing geopolitical uncertainty, inflation risks and global economic volatility, Emira enters the 2027 financial year from a position of strength.

The company has successfully reduced debt, strengthened its balance sheet, improved operational metrics and expanded its exposure to higher-growth international markets.

Its diversified earnings streams, disciplined capital recycling strategy and focus on value-accretive investments continue to differentiate it from many traditional property funds.

Management has provided an executive KPI target of 133.53 cents per share in distributable earnings for the year ending 31 March 2027.

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"We remain focused on delivering meaningful growth and long-term value for all shareholders," concludes Day.

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For investors, Emira's latest results suggest a REIT that is not only navigating changing market conditions successfully, but actively positioning itself for the next phase of growth both locally and internationally.

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