Emira Property Fund reports a 17% fall in distributable earnings for the nine months to end-March 2023, citing escalating business costs in South Africa as a major concern.
- The group’s CEO, Geoff Jennett, says there has been a plunge in business confidence amid continued water and electricity disruptions, slowing down decision making among prospective tenants.
- Emira’s directly held portfolio in SA comprises 94 properties worth just over R12 billion, with urban retail accounting for 41% by value, but also includes industrial, office and residential assets.
- Tenants are facing higher debt servicing costs due to the rapid rise in South Africa’s interest rates, which could put pressure on rental payments.
- The group’s rental collections sat at 101.6%, meaning that it even collected some overdue payments during the period.
- Reversions in its retail assets improved from -13% to -5.5%, but vacancies increased to 3.1% from 2.8%.
- Industrial reversions improved to -6.5% from -20%, while vacancies also improved to 2.1% from 2.7%.