WHERE TO INVEST: Beyond standard property — Emira’s unconventional assets drive strong total returns
From Gauteng apartments and South African offices to Polish industrial assets and US shopping centres, Emira’s diversified portfolio keeps investors focused on what management buys next.
Emira Property Fund, a mid-cap real estate investment trust (Reit) worth R6.7-billion, offers investors unconventional assets beyond standard property holdings. The fund's diversified portfolio spans Gauteng apartments, South African offices, Polish industrial assets, and US shopping centres, with a current dividend yield of 9.3% and a 14.6% increase in share price over 12 months. This yields a total return of 25% over the same period.
While Emira shares similarities with other property companies, its unique approach lies in its focus on capital allocation decisions. The five-month period ending August 2026 provides an opportunity to examine the fund's current assets and future moves. Emira's properties consist of local commercial properties, residential units, and an interest in foreign entities.
The fund holds 29 directly held commercial properties, including 9 retail stores (focusing on neighbourhood and community shopping centres), 7 office buildings (mainly P- and A-grade), and 13 industrial properties. These properties' vacancy rates fluctuate, with retail vacancies up from 4.2% to 5.3%, office vacancies improving from 9.9% to 7.7%, and industrial vacancies increasing from 0.7% to 1.1%. However, industrial reversions have improved from -6.6% to -2.2%, showcasing the strength of this particular asset class.
Emira's residential portfolio consists of 1,737 units, which has decreased from 1,970 units due to the sale of 233 units for R125.3-million. A further 311 units are expected to transfer by March 2027, generating steady rental income and minimizing key-tenant risk. The vacancy rate for this portfolio, excluding held-for-sale units, sits at just 2.0%.
Emira also holds stakes in other companies, such as a 6.9% interest in SA Corporate Real Estate for diversification and a 23.9% stake in Octodec, which has raised eyebrows due to its high level. Additionally, Emira owns a 45% interest in DL Invest, a portfolio of 43 properties in Poland and a 5% interest in five US retail malls with value-oriented grocery anchors. Notably, Emira has agreed to sell one of these US investments at an 8.1% premium to its March book value.
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