Broadcast Type: Interview; Tags: Closing, Bell, Southern, Africa, Jse, Listed, Real, Estate, Investment, Trust, Emira, Property, Fund, Posted, Eighteen, Decrease, Distributable, Earnings, Disposable, Lower, Income, Investments, Higher, Level, Interest, Rates
in closing bell southern up we have africa next jse listed real estate trust emira investment property fund eighteen that have posted an percent decrease in distributable earnings back of disposable on the lower income s from the u investments and a higher level of rates charged interest on debt i'm joined jeanette by jeff ceo at emira property fund for so let's start more off by just diving some of the factors into affecting distributable earnings what you see and as the main course here so tanya we were that are dividend per share from a measure which is so typically what read measured on and what we certainly mirrors around where down by several point one percent against the december twenty period two six month bearing in mind change that we've had a in year rent owes that fact these factors are here with you know we has shared six months ago so certainly think market was anticipating the and expecting this are it those the there are a few factors there you've mentioned is probably the largest is the one which high level of interest rates certainly that's the that certainly had an impact that and i think on that's applicable across reads most that i've got debt and you all you will know what that in fact the interest rates on of the other ones are that in terms of the u s is that the dividend income cashflow wise up was actually even though distributable income was slightly so down that's had an impact we've also been quite busy on the corporate side where we've disposed of our investment into a nuclear was a high which yielding lower lsm rural fund retail and that's obviously also then had impact as well an because you're disposing high yielding of a investment and you then cash back taking the and putting it into debt we'd always planned which but you must understand a risk side from that your risk is lover then so those most were why really the reasons you've got to the seven point one percent reduction in the dividend for month period the six hanna what in i want to hone on the u s picture a few you mention bankruptcies that affected performance the u s market over in notably bed bath beyond and a and few others what strategies towards are your this and how are you viewing your vacancy levels considering the direction u of the s economy at the moment so tonya unfortunately bankruptcies do happen from time and certainly to time in more challenging markets as we certainly as have here and said in u s and the you're you're right in terms of bed bath and beyond earth fair city party and they've been a few other small ones but if i vacancies look at where our are at the end of march they were sitting at two point six percent our total portfolio and and at three they are now sitting point six percent so really that's driven by and the earth fair and the the party city side talking and and really you about thirty-five thousand square feet out the total of three point of eight million square feet which if you divide give you by eleven won't the square metres got but if you've the best centres if best you've got the corner retail and you've got the appropriate tenants in your centres be then you're going to fine and when we were speaking our partners to just yesterday they also confirmed this is still that one of the strongest leasing mark is that they've ever seen certainly within the law fifteen years and we've of intent got letters from two tends to take over those spaces so that's a some of cycles that you the will see from time and time to really having a between vacancy rate of two and a half and three half even up to four and very i think is acceptable in this the market in you'll be fine your so long as you got good centres which we certainly do let's so then talk about your liquidity position even prepared by quite a bit curious to your plans hear what are aware that gonna do with the money what do you ja so so tonya yes you absolutely right are known to value dropped from forty-four percent down forty one point to the two percent level we're sitting with a fair amount of of unutilised reserves that we can then we can then use and one particular use is the acquisition the the of the full shareholding in transcend took place which just earlier on this week we now own where a hundred percent of transcend and there's a cash flow out there those minority for shareholding that we didn't own that will then so slightly sort of kick us up but that will be three hundred million of our eight hundred and fifty hundred and fifty to nine million rand cash pile so so and that we've had always planned but through the sales processes you able to have want to be cash and then look to deploy it and we would like to further expand into the u s but challenging at that is the moment just in terms where interest rates are of and to find right deals which the is absolutely key and the for us south african environment other move now than this on transcend to close their luck we're not seeing any particular opportunities ground on the at this point in time but we always look and when he was nice be in a position where to to move if we needed we've got do the fire power to that look caning get closing just like to your thoughts in terms of how view you the outlet for amira so we an outlook perspective from we always share call our exactly serve what we kepi i target than giving rather guidance and we have that shared that number was a hundred and eighteen point four nine cents for march the twelve months to of next year we do anticipate being slightly below that and if you it in terms of the look at results released now is probably going to be fairly comparable the next in six month period and as much as the economy is africa tough here in south you've seen are lower vacancy something four point one percent at you've seen our retention over tenant eighty percent you've seen revisions smaller being so so i think the pain has a lot of already been taken so it's it is a challenging environment in that we operate but reits are there to to pay dividends be conservative and be ready to take advantage of opportunities and i think over time you will certainly see that i can't brilliance chair thank you today so much for joining us that was jeff jeanette ceo property at emira fund this is how we wrap up closing bala seven