INVESTORS SNAP UP EMIRA DEBT: TEMPLETON

Listed property funds access capital to buy real estate in a number of ways, including through the bond market. James Templeton, CEO of Emira, a Real Estate Investment Trust listed on the Johannesburg stock exchange, has said before that it is Emira’s policy to diversify its sources of funding between commercial banks, the debt capital markets and money markets. Listed property companies are tapping into the bond market for funding because it lowers the average cost of borrowings and diversifies sources of borrowings. As at 30 June 2014, Emira had more than 140 properties with a total asset value of R10,7 billion. It was trading on the JSE at a 52-week high last week (see share price chart below). Templeton provides an update on Emira’s access to debt capital markets here. – JC

 By James Templeton, CEO of Emira Property Fund

Emira enjoys robust access to debt capital markets, says James Templeton.

Emira Property Fund’s access to debt capital markets remains robust, even with general lacklustre demand for listed property commercial paper (CP).

At the beginning of November, Emira renewed R450 million of 12-month unsecured CP in a split of R250 million 12-month CP and R100 million each of two- and three-year Domestic Medium Term Notes (DMTNs). This equates to an average duration of 20 months, at a better-than-budgeted average margin of 119bps.

Last week Emira raised a further R50 million of six-month CP at 37bps over six-month JIBAR.