From Daily Maverick · The Finance Ghost · · 3m
Emira's unconventional bets drive 25% returns
South Africa's Emira Property Fund mixes standard office and retail with Polish logistics, US malls and 1,737 residential units to outperform peers.
In brief
South Africa's Emira Property Fund mixes standard office and retail with Polish logistics, US malls and 1,737 residential units to outperform peers. Emira Property Fund's diversified portfolio across South Africa, Poland and the US delivered 25% total returns over 12 months, driven by unconventional assets beyond…
Emira looks like a typical mid-cap Reit
Emira Property Fund has a market cap of R six point seven billion and a dividend yield of nine point three percent, suggesting a modest valuation compared to larger peers.
But returns tell a different story
The share price rose fourteen point six percent over twelve months. With dividends included, total return reached twenty five percent, with solid returns also over three and five years.
Emira's standard portfolio is diverse
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Emira holds twenty nine South African commercial properties: nine retail centres, seven office buildings and thirteen industrial properties. Retail vacancies rose from four point two percent to five point three percent by August two thousand twenty six.
Office leases show pressure
Office vacancies improved from nine point nine percent to seven point seven percent, but reversions fell to negative eight point six percent due to renewal of a major seven year lease in Bryanston, Johannesburg.
Emira is actively selling properties
During the five months to August two thousand twenty six, Emira disposed of six commercial properties for R five hundred thirty one point eight million. A further two disposals are expected by December.
A massive residential portfolio complicates things
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Emira owns one thousand seven hundred thirty seven residential units, down from one thousand nine hundred seventy in March after selling two hundred thirty three units for R one hundred twenty five point three million. A further three hundred eleven units are expected to transfer by March two thousand twenty seven.
The residential story goes back to Transcend
Emira invested in Transcend Residential Property Fund in two thousand eighteen and took it private in two thousand twenty four at a discount to book value. Ninety five percent of current units are in Gauteng, only five percent in Cape Town.
Emira holds stakes in other listed Reits
Emira owns six point nine percent of SA Corporate Real Estate and twenty three point nine percent of Octodec, acquired during April and May two thousand twenty six. The Octodec stake appears too high to be passive.
Poland and the US expand the reach
Emira holds forty five percent of DL Invest, a portfolio of forty three Polish properties focused on logistics and industrial assets. It also owns five US grocery anchored shopping centres with a vacancy rate of two point six percent.
Management signals more moves ahead
Emira's balance sheet is strong with a loan to value ratio of thirty one point three percent. Management noted the fund is on track to achieve its objectives, with interim results due at the end of November two thousand twenty six.
The essence
Emira Property Fund's diversified portfolio across South Africa, Poland and the US delivered 25% total returns over 12 months, driven by unconventional assets beyond typical office and retail holdings.
