Broadcast Type: Interview; Emira Property Fund's CEO Jeff Genset discussed the company's latest financial results, highlighting a 6.9% increase in distributable income per share and a 12.3% increase in net asset value per share driven by local property valuations, reflecting the impact of their hard work over many months and years in improving their portfolio.
this evening i am nosipho and radebe we move to this now emira property fund has reported solid half year the six results for month period ending the thirtieth september of now the company announced nine a six point percent increase in distributable income per share alongside a twelve point three percent net rise in asset value per share partly driven by its recent entry into the polish property market with an initial investment in d l group invest now jeff genset c emira e o at property fund joins to unpack us on the line the latest set of numbers a very good evening jeff and welcome to power business or glad to be on thank you alright jeff give us your overall on the thoughts then latest set of numbers given the increase in the financial metrics ja so been a good six months it's in in order to deliver any good six months to have been doing a you need in the past lot of work and so this is a the effect of many months and hard work years of in terms of poverty portfolio on our we delivered sixty three point five cents one for a six month distributable income per share which is six point nine percent than the higher equivalent period last year our asset value net per share has had a increase up meaningful to nineteen forty six a twelve point so that's three percent increase local driven by valuation growth and our bargain purchase into option the into poland and ultimately we are paying a dividend of sixty two point three nine cents a half year dividend which per share is one point one percent what it higher than was six months ago i look at an operational our vacancies have improved overall from four point one percent to three nine percent point and as i in mentioned earlier just terms of the poet meaningful we've had some sales taking place which have enabled investment into our poland which we're very excited ja about and speaking of mirror poland you know a recently entering poland with stake a twenty-five percent in d l invest group with option to increase an the holding to forty-five what made percent poland an attractive market get what growth and drivers in the polish sector real estate are you particularly optimistic about so poland has been having gdp growth averaging six percent per annum over the last only twenty years second in the world to china a lot of money there's been going into poland and it's a very exciting country where their cost of labour there is low land their cost of is low their their workforce well is very educated and money there's a lot of eu going into their there's sourcing also much in taking place in europe in terms of bringing in industries that were previously outsourced its cheapest and and best to put it poland so into that was the key for in terms of us would the economy tailwinds have those and be able to continue to grow and be quite confident on that side polish science from secondly into the sector we're investing predominantly into the logistics sector into and logistics the sector in poland services the entire central eastern europe and the western europe side so that was also important for us and very importantly we then managed to find a on the ground player that has a developer a that is and owner of of predominantly assets logistics and has got a pipeline and to grow wants so we could team them we could invest up with into their equity their business or their in existing business could use those and they proceeds to add to business our to that that polish business so that was that was also good to make we had the right partner sure investing into equity and then lastly there's some very that are coming healthy returns through so we think that when you invest offshore as you're in the u s you've got to make sure got all the tailwinds rights you've you've got your sectors rights and that you've got partner the right with you and if you do that well then you can weather most storms could come your way that ja u s side and on the the u s portfolio a strong contribution delivered with a low vacancy rate and you know steady economic growth indicators how does a mirror then plan optimise to expand or its us holdings particularly in recent light of economic developments there so we've put hundred and forty-seven a million dollars of equity investment into twelve separate open air power centres the u s in which are these big open air value orientated retail centres and invested with were co americans on the ground taxes though it is invested even into a few other states as well and the us been growing economy has two to three percent for the past every year couple of years the unemployment has been very low the economy is extremely strong and i'm sure elections they've just gone through and the new president does talk how about it's going to be in america strategy first and so we sort of see there being a bit that more growth coming through in the u s americans investing into themselves and therefore their spending a these centres bit more at which will ultimately mean that value of our centres the should increase as well and from our side we've certainly and wanting been looking to invest further s into the u but we were just maybe to foresee in regard to the types of assets wanted the hurdle we rates and making ticked all sure we the boxes didn't and that's why we we hadn't added to our centres the years for in the last two years but then we then found our investment into poland and the returns poland that we are getting in are significant and now when we judge our returns against our polish investment prefer to add we would to our polish investment than adding rather through to the u s investment on the basis of the risks involved and the returns that we can achieve so not anticipate we're in adding much to investment our us unless somebody comes our way alright back moving home geoff emira south african portfolio well performed particularly in retail and industrial sectors has the office how segment you know been adjusting to market trends and what further adjustments might emira consider for the sector so the office sector and there's just twenty individual the office assets in sector there is a big p and a grade buildings predominantly focused here in gauteng our vacancy rate reduced nine from ten point percent down to nine point four percent the first time since post covid that we've dropped down to single digits side in the offices so that's positive indicator and we certainly seeing are more interest in offices from coming through positive government of national unity lowering rates business interest system to think could be doing about what they in the future must but you realise that the key to actually unlocking the value of in the office sector is to have economic growth in south africa if we can get to g d and growth of two to p three percent and plus then you're going to see businesses expanding more taking space and that's going we'll actually to be what drive at but if you continue with pedestrian one and a bit percent growth you're not going to see much improvement from the vacancy level yet now in our portfolio nine point four percent ja and note jeff on that you know looking ahead see more do you potential in continuing emirates current strategies growth or are there any new areas or property or types under consideration for future investment i think we've got quite a diversified portfolio split across retail office industrial and residential in south africa here and once we second implement our trans into the eg poland taking twenty five percent our to take up to forty-five percent i mistakenly will have thirty percent seven percent thirty of our total assets offshore sixty-three versus percent locally and i think that's good mix a and so from a growth if the perspective deals make sense we will to add to start that and but looking not really to add more sectors or specific over sectors and above those four main sectors we've already got that on that it there thank note we'll leave you so much for time this evening geoff your great thank you thanks for having me fantastic that was jeff c jennifer e o at emira property fund taking us through their interim results month for the six period ending the thirtieth of september that takes and us to sixteen minutes o clock to seven here on power business on over let's head to the traffic latest desk for the update in the movements