“The source of the distribution comprises net income from property rentals, income earned from the Fund’s listed property investment and interest earned on cash on deposit,” said [DATA EMI:EMIRA PROPERTY FUND.] in a statement.
Vacancies have also been reduced to 5.1 percent at December 2013 from 5.6 percent at June 2013, which represents a decline in vacancies of 7407 square meters, driven by substantial leasing in all the retail, office and industrial sectors.
Revenue rose by 6.8 percent, which was positively impacted by the leasing of vacant space, acquisitions and organic growth from the existing portfolio and increased recoveries of municipal expenses, offset by disposals.
The Real Estate Investment Trust (REIT) listed group also finalised several major new leases including five year leases at Cochrane Avenue, 7 Naivasha Road and Lake Buena Vista
Major renewals concluded include Defy Appliances, Taylor Blinds, Shoprite Checkers and Pick n Pay both at Quagga Centre.
Worldwear Fashion Mall and Lynridge Mall were among the non-core buildings that the company sold unconditionally, bringing the total value of sales to 328.8 million rand for the period.
Acquisitions during the period comprised of an industrial building leased to Lithotech in Airport Industria, Cape Town for 34.5 million rand.
Several refurbishment projects are also currently underway, totalling approximately 545.5 million rand the most significant of which includes a major upgrade and extension to Wonderpark Shopping Centre in Pretoria.
The project will cost 513 million rand and will accommodate existing national tenants such as Game, Woolworths, Jet and Edgars and will also make space for new tenants like Checkers, Dis-chem and Cotton On.
Property expenses for the fund however increased by 12.4 percent due to increases in municipal costs, leasing expenses and refurbishment costs.
“Notwithstanding relatively subdued economic growth, a continued focus on letting space and tenant retention, as well as vigilant cost control, has yielded benefits to Emira PI holders. It is expected that the increase in distributions payable in respect of the full financial year, will be similar to that achieved in the first half of the year,” said the company.