Emira grows distributable earnings in tough market conditions

Emira Property Fund, a mixed portfolio property group, has navigated through a challenging operating environment to report resilient financial results for the year to June. Despite facing a series of unprecedented events such as the COVID-19 pandemic, July unrest, rising inflation, and geopolitical tensions, Emira Property Fund has managed to maintain its stability and grow distributable earnings. Geoff Jennett, CEO of Emira Property Fund, shared insights on the fund's performance and strategies for the future in an interview with CNBC Africa. The tough market conditions, characterized by uncertainties like the possibility of a fourth wave of the pandemic and recent riots, have put Emira Property Fund to the test. However, the diversified nature of the fund, with exposures across various sectors in Africa and offshore, has allowed it to weather the storm. Despite challenges, Emira Property Fund achieved a 7% increase in distributable income per share, demonstrating its resilience in the face of adversity. Geoff Jennett highlighted the importance of continuous investment in assets to ensure they are in prime condition for tenants. With a loan-to-value ratio of just 40.5% and a strong focus on asset quality, Emira Property Fund remains well-positioned to navigate through uncertainties and deliver sustainable returns to its shareholders. As inflation and rising interest rates pose concerns for the market, Jennett remains optimistic about the impact on property values and rental income. Inflation can lead to an increase in asset value and rental prices, benefiting property owners in the long run. Emira Property Fund has hedged 73% of its loan-to-value ratio, mitigating the immediate impact of rising interest rates on its tenants and operations. Emira Property Fund is strategically reducing its exposure to office space, aiming to shift its segment mix towards a more diversified portfolio. With plans to decrease office exposure and increase offshore investments, the fund aims to strike a balance between local and international assets. By tapping into first-world economies and undervalued sectors, Emira Property Fund seeks to optimize its portfolio mix for sustainable growth. Looking ahead, the future of Emira Property Fund involves maintaining its diversified status while gradually increasing offshore exposure. With a focus on retail and industrial segments, the fund anticipates growth opportunities in both local and international markets. Emira Property Fund's commitment to improving its position each year and seizing opportunistic investments positions it for sustainable growth and resilience in a rapidly evolving market. In conclusion, Emira Property Fund's ability to adapt to market challenges and capitalize on growth opportunities amidst uncertainty underscores its strength and strategic vision. By staying agile, diversifying its portfolio, and focusing on asset quality, Emira Property Fund continues to demonstrate its commitment to delivering value to shareholders and tenants in a dynamic real estate landscape.