Emira delivers 30% HY HEPS jump

Emira Property Fund, a South African real estate investment trust, has shown a remarkable recovery with a 30% increase in headline earnings per share (HEPS) and a 17% growth in dividends per share. The CEO of Emira Property Fund, Geoff Jennett, attributes this impressive growth to a combination of factors. One of the key drivers of growth was the company's strategic decision to move offshore and invest close to AUD$2.5 billion in US assets. This move saw the company acquire 12 assets in the US market over the past six months, compared to the previous period. The US economy proved to be a strong market for Emira, particularly in the open-air power centers with value offerings. The occupancy rates in the US assets improved significantly, leading to a boost in dollar income flows, coupled with a weakening Rand against the dollar. Another contributing factor to the growth was the performance of Emira's local commercial portfolio, including retail, industrial, and office properties. This sector saw an 8% growth in distributable income, with a decrease in vacancy rates. Emira also saw growth through its increased stake in the Transcend Residential Property Fund, further consolidating its position in the market. Geoff Jennett emphasized the importance of diversification in driving growth for the fund. By making strategic investments, focusing on asset enhancement, and making sound decisions, Emira was able to achieve a substantial 17.4% growth in dividends over the six-month period. Emira's success in the US market was highlighted by its partnership with US investors who share a similar culture and value system. Despite challenges such as slowing economic growth and higher interest rates, Emira remains confident in the strength of the US economy and the performance of its assets in the market. The company's focus on dominant power centers with essential services has proven successful, with positive rental reversions and high occupancy rates. While acknowledging concerns about the pressure on US consumers from inflation and rising interest rates, Emira remains optimistic about its rental income streams and the resilience of its assets. In terms of its local focus, Emira continues to invest in retail and industrial properties, prioritizing asset improvement and defensive strategies to navigate the challenging environment. While the company aims to reduce its exposure to office space, efforts in this regard have not yet yielded significant results. Emira's growth remains anchored in its residential investments, with a focus on enhancing existing assets to drive further growth in the future.