Emira final results 30 June 2016
Revenue for the year was recorded at R1.797 billion (2015: R1.812 billion). Operating profit lowered to R1.118 billion (2015: R1.145 billion). Profit for the year attributable to Emira shareholders decreased to R640.1 million (2015: R1.9 billion). Furthermore, headline earnings per share came in at 164.75 cents per share (2015: 181.62 cents per share).
Dividend distribution declaration
The board has approved and notice is hereby given that a gross final dividend of 75.76 cents per share has been declared (2015: 69.62 cents), payable to the registered shareholders of Emira Property Fund Ltd. on 12 September 2016.
Macro-economic conditions remain challenging with South African GDP growth expected to be stagnant for the remainder of 2016. The continued economic pressure on tenants, together with the over-supply of commercial office space, is expected to negatively impact rentals.
As announced on SENS on 20 June 2016 the Fund forecasts a negative growth in its distributions per share of 2% for the year to 30 June 2017. The forecast negative growth is primarily as a result of increased vacancies in the Fund’s office portfolio together with expected negative rental reversions.
The Emira board has embarked on a strategy to improve the Fund’s sectorial allocations, by reducing its office exposure, to ensure that the portfolio is better positioned for future periods.
Emira’s board is conscious of the Fund’s share price performance over the last 12 months and the divergence between the Fund’s equity value on the stock exchange compared to its book value. Immediately prior to 30 June 2016 Emira commenced an on-market share buy-back strategy reflecting its confidence in its prospects relative to the share price. This and other strategies will continuously be evaluated in the forthcoming period.
This forecast has not been reviewed and reported on by the company’s external auditors.