Emira Property Fund (EMI) H1 2025 earnings summary

Executive summary

• Strong operational performance with significant property disposals and a strategic offshore investment in DL Invest, increasing offshore exposure to 26.8% of total assets after tranche 1 and up to 37% after tranche 2.

• Distributable income per share rose 6.9% year-over-year to 63.51c, and interim dividend per share increased 1.1% to 62.39c.

• Net asset value per share grew 12.3% to 1,946c compared to the prior year.

• Commercial vacancies improved to 3.9%, and residential occupancy (stabilised portfolio) was 96.7%.

• Improved business confidence in South Africa post-election, with macro tailwinds and stable operational metrics.

Financial highlights

• Total disposals of R1.795bn transferred, with an additional R482m pending transfer and R171m in residential disposals.

• Distributable earnings for the period were R332.0m, up from R310.7m year-over-year.

• Net property income from the commercial portfolio increased 3.5% to R422.9m, while residential net property income fell 10.7% due to unit sales.

• Loan-to-value (LTV) ratio improved to 42.0% from 42.4% year-over-year, with undrawn debt facilities of R370m and 74% of debt hedged.

• Cost-to-income ratios for commercial and residential portfolios improved, with net ratios at 25.6% and 30.6% respectively.

Outlook and guidance

• KPI targets remain on track, with confidence in meeting or slightly exceeding distributable income per share targets for FY25.

• Focus for the remainder of FY25 is on completing disposal transfers to further reduce LTV to the 37–39% range.

• Polish deal expected to be accretive, with a second tranche (€45m) investment planned.

• Easing inflation, declining interest rates, and political stability are expected to support improved property demand and investor confidence.

• Distributable income for the year ending 31 March 2025 is expected to be marginally higher than FY24.