Johannesburg – Emira Property Fund reported on Wednesday distribution growth per participatory interest (PI) of 9% for its full year ended June 30 2015, meeting its market guidance with results that continue its growing track record.
Besides posting total distribution growth at double the inflation rate to deliver real returns, Emira’s net asset value (NAV) increased by 15.9% during the year to 1 751 cents per PI, while its total distributable income grew 14% to R685.5m.
James Templeton, CEO of Emira Property Fund, attributes its meaningful increase in distribution to the fund’s acquisitive growth, the contractual rental escalations on most of its portfolio, improved leasing and rigorous cost controls as well as increased recoveries of municipal expenses.
Templeton will leave Emira at the end of August 2015 to pursue his own interests. Geoff Jennett, Emira’s current CFO, will replace Templeton from September 1. At the same time, the responsibilities of Emira executive director Ulana van Biljon will be formalised to include that of COO. Emira is in the process of appointing a new CFO.
Emira expects to achieve similar improvement in dividends in the coming financial year.
Emira is a JSE-listed Reit that is invested in a quality diversified portfolio of office, retail and industrial properties.
Its assets comprise 148 properties valued at R12.7bn. Emira is also internationally diversified through its direct interest in ASX-listed Growthpoint Properties Australia (GOZ), valued in excess of R796m, with total assets now at R13.6bn.
Emira Property Fund Scheme was converted to a corporate Reit – Emira Property Fund Limited – from July 1 2015.
Emira has been active in the debt funding markets and maintained a moderate level of gearing with a loan-to-value ratio of 33.4%, and 84.6% of its interest rate exposure is fixed for a weighted average length of 3.6 years.
Emira is also recycling its capital by concluding beneficial disposals of non-core properties and reinvesting the proceeds in upgrades, improvements and acquisitions. It has also established a development pipeline of over R2bn to support its strategic growth.