Broadcast Type: Interview; Tags: Ticking, Higher, Tenth, Quick, Markets, Update, Break, Ll, Zyda, Emira, Financial, Performances, Tuned, Degree, Family, Graduate, Home, Places, Living, Longer, Fearing, Unforeseen,
greater good welcome back fund emira property has had to contend rates with high interest and general market uncertainty delivered despite this its an eleven point five percent distributable rise in earnings and a its twenty percent jump in total dividend however it's twelve said that the month financial period can't be directly to the previous compared nine month year joining me now for further analysis on this disconnect company ceo is jeff jenna thank for you so much your time geoff of course we the know move that you had changing in terms of your financial year end so of you know course during this financial three more year it had months than the not prior period so really compatible so how would you actually characterize your performance in this financial year so the best way i see is you've got to do this to set yourself targets the twelve month for period and then you yourself against measure those targets and save on the operational side vacancies if you look at where our were last year four point we were sitting at seven percent on our commercial portfolio we're sitting at four point one percent a strong there's number if the you look at on on the distributable income per share we have set side ourselves a target hundred and eighteen of a point four nine we achieved cents and a hundred and nineteen three point o cents so there's a good there measure and were reasons why that on a like for like basis that the increase was only eleven percent and that was we flagged the items that a year ago would no longer in that we crew for the nana income we would we have disposed of or anticipated disposing of the high yielding was in nuclear which a strategic disposal so we lost that income and then also bearing the effects of having higher interest rates on our six billion rand debt on our forty two percent to value loan and all of that but was anticipated as i say we set ourselves target of a hundred a and eighteen point four nine and we achieved a hundred and nineteen point o three so that we are tells you that on track in terms of what we've set ourselves to achieve you well here's something really expect your local portfolio they're that saying it provided a robust operational actually performance that even exceeded your expectations how is that in this difficult economic environment ja so think that's from i just the way we operate our portfolio we spend a lot of money on it we do take action probably earlier than some other players do we look our tenants after and if you do that consistently enough and we've got a good team then of course a little and bit of luck you know you're you're likely able to to then be be in a position where things did turn where out better and important measure and an under that is that when started the year we last year we anticipated that load shedding would be much more significant if but i look at it and while we were our budget anticipating having diesel anywhere spend of between fifty and we ended a hundred million and up spending only about million twenty five of which eighty-seven percent you recover your tenants from but that's a sign that know operationally you you're doing well and and i say particularly as in the last few months we've been blessed so in terms of not having much motion ja well actually i understand i mean the proactive measures there that you've done also to protect your retailers portfolio in that but would you say that your south african portfolio is on a solid footing even with office that has had quite a difficult period for the last few years we've definitely improved so under the officers sign our offices improved from a twelve percent level of vacancy down to ten percent we've done three office meaningful let's with over a thousand squares haven't done that for quite we you can a while so sort of see that the star and really performer was actually portfolio on our industrial which our vacancies on the industrial dropped sector down two point seven percent that means twenty eight of our thirty two buildings a hundred percent are let that's not usual that's certainly so a good sign and that's good momentum a to have achieved so ja african wise south portfolio performed well about ja we're talking momentum because i do understand that your u s indirect portfolio also thrives strong on the u s economy a but we have seen slight slowing down in that economy i'm wondering if and in any way starting to filter it is through to that portfolio not or so it hasn't impacted us yet last year we did have to tenant failures were unexpected which but that's the life two vacancy percent increased to three point six still good pretty so so that's just the the the life and the procedure happens in terms of what and particularly in the u we s but have seen meaningful growth taking the ground place on and when you've got between and three percent one growing consistently in s it certainly the u filters through on the to what's happening ground the other part inflation two is inflation is still stubbornly high probably why and that's interest rates are still higher at their levels and with inflation you get rentals will your increase a little in the u s it's bit different you've got fixed or rentals contracts but when that space again becomes available and the tenant lives doesn't exercise option you their get positive reversals we were fortunate enough to have pretty much six percent positive river versions on this little bit of space that did come through so that's telling you on the ground that the there there certainly appetite is for good space and people willing to pay up are for that space let's talk about debt well of the financial because it is one metrics that investors really through sift and dissect for property companies understand i do that your loan to value ratio actually did reduce how much more have room do you with that but also finance looking at your costs as much as your loan to value ratio did reduce are you still experiencing significant pressure and you expect that to kind of a sticky for term at least a short so as we flagged last year we anticipated interest rates to rise and then so and there is always a lag effect interest rates take to to place and then you've got incur them and pay that's them yeah and certainly come through and that of the drivers we only was one hundred while set the and eighteen point four nine cents target in terms of our dips so the interest lines certainly higher we don't expect that change meaningfully to and that's because when we still waiting for are interest rate cuts to take place and we still bearing the effects having those low of interest rates and our hedges all resetting to to these new current levels but on our loan to value it you've seen improved to the forty bit two and a percent but i think there's a there's there's a particular magic that's should soon be happening is that in our disposals that got contracted we've for that is in excess of two point four billion rand and proceeds when those come in that's meaningful going to be a liquidity event for us which base at the case would be used to value to reduce loan meaningfully from the forty two percent level down to the mid thirties have certainly but we got plans to utilise that cash for further diversification most probably offshore or will trend back up it their so much for well thank you your time and giving us insight and detailing those numbers that came of emira out that was ceo of emira jeff jeanette now sticking with company news zyda has