Emira on track to maintain distribution

Posted On Tuesday, 22 June 2010 02:00 Published by eProp Commercial Property News
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Emira Property Fund said that the property market is recovering from the recession and is on track to maintain its current level of distribution to its PI holders.

James TempletonListed property fund Emira Property Fund (EMI) said Monday that the property market is recovering from the recession and is on track to maintain its current level of distribution to its participatory interest (PI) holders for the six months ended June 2010.

At the half-year stage in December, Emira delivered a distribution payment to PI holders that, at 51.84 cents, was 6.3% up on the previous comparable period.

Emira CEO James Templeton said the fund is hoping to match that level of growth, or exceed it slightly, for the period ended in June 2010.

"In 2009 landlords were on the back foot with rising vacancies and little growth - and in some cases declines - in rental levels. This year vacancies have stabilized and, generally, tenants seem to be under less pressure. Thus the outlook for distribution growth remains positive," he said.

Templeton added that one slight concern is the rising level of bad debts among some financially stressed tenants, which typically continues even after the economy has begun to recover. However, he noted, that Emira has adequately provided for this and there is little cause for concern.

According to Templeton the letting market is beginning to pick up - albeit at a slower rate than initially anticipated.

In the industrial market Emira has recently concluded some good lets. The balance of the vacant space at the TIS Corporate Park development in Midrand, which it acquired from Eris Properties with an 18-month rental warranty in November 2008, is now fully let. There is also strong letting interest on two of the four units in nearby Admiral House, which is being rebuilt to improved specifications after a fire in 2009 destroyed the building.

In the retail sector, there is growing interest from certain national chains in taking space in well-established and growing shopping centres - such as Emira's 63,000m Wonderpark flagship centre in Pretoria where possible extensions are being considered for Woolworths and several other national food and fashion chains; Market Square in Plettenberg Bay where the Woolworths outlet is being extended and Randridge Mall in Randpark Ridge where refurbishments have taken place to the Pick 'n Pay, Woolworths and Mr Price stores, amongst others, he said.

The office letting market remains mixed, but Templeton said there are signs that things are beginning to improve. For example, at its Rigel Park development in Pretoria, where Emira has just completed a 14 million rand refurbishment, close to 70% of the available space has already been let to two major tenants.

"Since the beginning of 2010 things have clearly improved in the property market and we expect them to continue to improve for the remainder of the year," he said.

Last modified on Tuesday, 22 April 2014 17:27

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