Our opinion on the current state of EMI

Emira Property (EMI) is a real estate investment trust (REIT) with significant exposure to the South African economy, particularly through its office properties, including the prestigious Knightsbridge office park in Bryanston. Under the leadership of CEO Geoff Jennett, the company has been consistently improving. While it has some overseas exposure, primarily in outdoor shopping malls in America and investments in Growthpoint Australia, most of its portfolio is still located in South Africa. Emira also holds a 35% stake in Transcend, a South African residential fund.

The company has been strategically reducing its office exposure and reallocating capital into retail shopping centers in America. In April 2021, Emira received a mandatory offer from Maitlantic (Pty) Ltd and I Group Consolidated Holdings for the purchase of the balance of its listed shares due to its shareholding exceeding 35%.

In its financial results for the six months ending September 30, 2023, Emira reported a 12.5% increase in portfolio revenue but a significant decline of 90.2% in headline earnings per share (HEPS). Despite this, the company's net asset value (NAV) increased slightly to 1703.4c per share. Emira cited certain tenant failures and higher-than-anticipated interest rates as factors impacting its results.

In a pre-close update in March 2024, Emira reported commercial portfolio collections at 97.7% and office vacancies at 11.3%. The company's loan-to-value (LTV) ratio stood at 43.7% as of February 29, 2024. Emira's US portfolio, consisting of grocery-anchored, value-oriented open-air power centers, experienced an increase in vacancies to 4.7%.

From a technical perspective, the share price of Emira appears to have entered a new upward trend starting in November 2023, although it is still early days. Investors may want to monitor the company's performance and market trends closely before making investment decisions.