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Emira Property Fund HY 2014 results

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Emira Property Fund HY 2014 results

Emira Property Fund HY 2014 results

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  • 1. Growth in distribution +6,5% Vacancies reduced to 5,1% EMIRA PROPERTY FUND (A property fund created under the Emira Property Scheme, registered in terms of the Collective Investment Schemes Control Act No. 45 of 2002) Share code: EMI ISIN: ZAE000050712 (“Emira” or “the Fund”) Tax number: 0047/321/15/3 (Approved as a REIT by the JSE) Net asset value Commentary The board of directors of Strategic Real Estate Managers (Pty) Ltd (“STREM”) is pleased to announce an interim distribution of 59,31 cents per Emira participatory interest (PI) for the six months to 31 December 2013, representing an increase of 6,5% on the previous comparable period. Vacancies and tenant renewals: Vacancies decreased from 5,6% at June 2013 to 5,1% at December 2013, which represents a decline in vacancies of 7 407m2, driven by substantial leasing in all sectors. Major new leases concluded include: Five-year leases at Cochrane Avenue (5 870m²), 7 Naivasha Road (4 673m²), and Lake Buena Vista (3 500m²). Major renewals concluded: Defy Appliances (10 100m²), Taylor Blinds (7 794m²), Shoprite Checkers at Quagga Centre (5 715m²) and Pick n Pay at Quagga Centre (4 878m²). Disposals: The strategy to dispose of non-core buildings continued during the period under review. Four properties totalling R119,0m, which had been sold but not yet transferred at 30 June 2013 – Georgian Place, 261 Surrey Avenue, Fleetway House and Montana Value Centre – were transferred out of Emira during the period. Worldwear Fashion Mall and Lynnridge Mall, have been sold unconditionally, although they have not yet been transferred out of the Fund, bringing the value of total sales during the period to R328,8m. Acquisitions and developments: Subsequent to the previous financial year end, the Fund took transfer of three buildings in the Highgrove Office Park, Centurion, for R24,6m, taking the number of buildings owned in this A-Grade office park to six, valued at R157,9m. Acquisitions during the period comprised: (i) an industrial building of 7 533m² leased to Lithotech in Airport Industria, Cape Town for R34,5m, transfer of which took place in February 2014 and (ii) a vacant stand in the N4 Gateway Industrial Park for R12,4m on which a modern industrial facility of 9 371m² is to be developed at a total cost of R57,4m. Transfer took place in January 2014. Refurbishments and extensions: Several projects totalling approximately R545,5m are underway, the most significant of which includes a major upgrade and extension to Wonderpark Shopping Centre, where the centre is being enlarged at a cost of R 513m, from 63 000m² to 90 000 m² to accommodate existing national tenants including Game, Woolworths, Jet and Edgars and the introduction of new anchor tenants including Checkers, Dis-Chem, Hi Fi Corp, PQ Clothing, Cotton On and The Hub. Repurchases of Participatory Interests (“PI”s): The Board previously approved the implementation of a PI repurchase programme which was confirmed by PI holders at the AGM in November 2013. In terms of the programme a portion of the proceeds from the sale of the properties can be used to repurchase PIs in the open market. 1 358c Unaudited financial results for the six months ended 31 December 2013 and income distribution declaration per PI, an increase of 2,5% Distribution statement Six months ended 31 December 2013 716 721 (285 778) Operating lease rental income and tenant recoveries excluding straight-lining of leases Property expenses excluding amortised upfront lease costs % change Year ended 30 June 2013 670 935 (254 344) 6,8 12,4 1 353 853 (506 371) 430 943 20 322 R’000 Six months ended 31 December 2012 416 591 17 288 3,4 17,5 847 482 36 332 Net property income Income from listed investment Management expenses Reimbursement to STREM Administration expenses Depreciation Net finance costs Finance costs (12 (20 (7 (118 (123 867) 866) 134) 341) 530) (9 433) (22 189) (5 874) (119 437) (124 084) 36,4 (6,0) 21,5 (0,9) (0,4) (20 779) (44 227) (12 006) (236 946) (245 000) Interest paid and amortised borrowing costs Interest capitalised to the cost of developments (131 313) 7 783 (124 143) 59 5,8 (247 036) 2 036 5 189 4 647 11,7 8 054 Distribution payable to participatory interest holders 292 057 276 946 5,5 569 856 Number of units in issue Distribution per participatory interest (cents) 492 423 583 59,31 497 299 883 55,69 (1,0) 6,5 497 299 883 114,59 Investment income In accordance with the strategy of the Fund, certain properties that are underperforming or pose excessive risk to the Fund are earmarked and disposed of. The Fund will continue to repurchase PIs at prices considered beneficial to PI holders. Gearing: Emira continued to take advantage of the lower rates of funding available in the debt capital markets. Properties transferred out of Emira during the 6 months to December 2013 Funding activities during the period included: Amount R’m Date All-in-rate 22 August 2013 Repayment of three-month commercial paper 400m 5,3% 22 August 2013 Issue of six-month commercial paper 399m 5,8% 22 August 2013 Issue of three-month commercial paper 100m 5,3% 13 September 2013 Issue of twelve-month commercial paper 230m 5,9% 7 November 2013 Roll over of twelve-month commercial paper 450m 5,9% 20 November 2013 Repayment of three-month commercial paper 100m 5,3% 20 November 2013 Issue of twelve-month commercial paper 100m 5,9% In order to increase the fixed component of debt to 75% of total borrowings, subsidised swaps of R250m were entered into in December 2013 commencing in July 2014, October 2014 and January 2015, at an average all-in rate of 7,12%. Simultaneously, an existing swap of R200m was restructured, reducing the rate payable from 8,70% to 7,65%. This equates to a saving of R2,1m per annum for Emira. Growthpoint Australia Limited (“GOZ”): Emira participated in the rights issue held by GOZ in December 2013, taking up an additional 2 441 777 units at AUD 2,45 per unit at a cost of R56,9m. Property Valuation June ’13 GLA (m²) (Rm) Location Sale Exit price yield (Rm) (%) Office Kelvin, Gauteng 9 485 32,4 29,1 5,1 Office Office Retail Ferndale, Gauteng Cape Town, CBD Montana, Gauteng 1 752 7 090 9 717 6,4 33,4 39,2 7,2 32,7 50,0 8,4 3,3 7,0 28 044 111,4 Effective date August, October and November 2013 September 2013 October 2013 October 2013 119,0 Properties sold but not yet transferred out of Emira at December 2013 Sector Worldwear Fashion Mall Lynnridge Mall/Mews GLA (m²) Retail Retail Sale price (Rm) Anticipated effective date 14 172 20 022 Location Valuation June ‘13 (Rm) 37,0 149,3 34,8 175,0 March 2014* March 2014 34 194 Property 186.3 209,8 Fairlands, Gauteng Lynnwood Ridge, Pretoria Number of of buildings June 2013 Office Retail Industrial Total % Number of of buildings December 2013 69 37 42 431 859 363 391 338 568 46 200 10 157 7 387 10,7 2,8 2,2 63 35 43 415 082 360 300 338 327 43 476 10 504 2 358 10,5 2,9 0,7 148 1 133 818 63 744 5,6 141 1 113 709 56 338 5,1 Property expenses increased by 12,4% over the previous comparable period, mainly due to increases in municipal costs, leasing expenses and refurbishment costs. Excluding these items, the balance of property expenses actually declined. GLA (m²) Vacancy (m²) June June 2013 2013 GLA (m²) Vacancy (m²) December December 2013 2013 % Valuations Total portfolio movement Net finance costs incurred were similar to those incurred in the previous period as a result of the utilisation of the debt capital markets at reduced margins and the interest rate swap restructuring which took place during the period. Net asset value increased by 2,5% from 1325 cents per PI at 30 June 2013, to 1358 cents per PI at 31 December 2013, following the revaluation of investment properties and the investment in GOZ. Condensed consolidated statement of comprehensive income Unaudited Six months ended 31 Dec 2013 Unaudited Six months ended 31 Dec 2012 Audited Year ended 30 Jun 2013 Revenue 741 135 658 566 1 342 244 Operating lease rental income and tenant recoveries Allowance for future rental escalations 716 721 24 414 670 935 (12 369) 1 353 853 (11 609) 20 322 (281 780) — (31 886) (7 211) 17 288 (249 798) (28 713) (35 990) (5 894) 36 332 (500 970) (28 713) (70 572) (12 052) 440 580 113 946 355 459 341 288 766 269 577 023 86 072 290 157 471 542 (24 414) (3 998) 114 484 12 369 (4 546) 282 334 11 609 (5 401) 465 334 (4 416) 32 290 4 604 46 527 6 340 99 141 554 526 (104 041) 696 747 (148 431) 1 343 292 (108 104) 4 688 8 160 R’000 Income from listed property investment Property expenses Fee paid on cancellation of interest-rate swap agreements Administration expenses Depreciation Operating profit Net fair value adjustments Net fair value gain on investment properties Change in fair value as a result of straight-lining lease rentals Change in fair value as a result of amortising upfront lease costs Change in fair value as a result of property appreciation in value Revaluation of derivative financial instrument relating to share appreciation rights scheme Unrealised gain on fair valuation of listed property investment Profit before finance costs Net finance costs Finance income 5 233 5 233 4 688 8 160 Finance costs (109 274) (153 119) (116 264) Interest paid and amortised borrowing costs Interest capitalised to the cost of developments Unrealised surplus/(deficit) on interest-rate swaps (131 313) 7 783 14 256 (124 143) 59 (29 035) (247 036) 2 036 128 736 Interest received Profit before income tax charge Income tax charge 450 485 4 198 548 316 (16 000) 1 235 188 200 750 4 198 (16 000) 200 750 — (14 010) 205 792 4 198 (1 990) (5 042) Profit for the period 454 683 532 316 Attributable to Emira equity holders Attributable non-controlling interests 457 285 (2 602) 536 736 (4 420) 1 441 444 (5 506) 454 683 532 316 1 435 938 One-third of Emira’s portfolio is valued by independent valuers at the end of every financial year, with the balance being valued by the directors. At the interim stage, directors’ valuations are used. Sector – Revaluation of investment properties – ther timing differences including allowance for future rental O escalations Total comprehensive income Attributable to Emira equity holders Attributable to non-controlling interests 457 285 (2 602) 536 736 (4 420) 1 441 444 (5 506) 454 683 532 316 1 435 938 Condensed consolidated statement of cash flows R’000 Unaudited Six months ended 31 Dec 2013 Unaudited Six months ended 31 Dec 2012 Audited Year ended 30 Jun 2013 396 547 5 233 (131 313) — — (292 910) 395 482 4 688 (124 143) — (28 713) (284 842) 784 199 8 160 (247 036) (162) (28 713) (561 788) (22 443) (37 528) Acquisition of, and additions to, investment properties and fixtures and fittings Proceeds on disposal of investment properties and fixtures and fittings Acquisition of investment in listed property fund (345 015) 118 936 (56 920) (111 756) 85 900 (17 288) (252 070) 120 700 (19 502) Net cash utilised in investing activities Net cash utilised in operating activities REIT status Emira was awarded REIT status by the JSE, with effect from 1 July 2013. Prospects 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. Income distribution declaration Notice is hereby given that an interim cash distribution of 59,31 cents (2012: 55,69 cents) per participatory interest has been declared, payable to participatory interest holders on 17 March 2014. 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. Please refer to the statement of comprehensive income for further details. Last day to trade cum distribution Friday, 7 March 2014 Participatory interests trade ex distribution Monday, 10 March 2014 Record date Friday, 14 March 2014 Payment date Monday, 17 March 2014 PI certificates may not be dematerialised or rematerialised between Monday, 10 March 2014 and Friday, 14 March 2014, both days inclusive. In accordance with Emira’s status as a REIT, participatory interest (PI) holders are advised that the distribution meets the requirements of a “qualifying distribution” for the purposes of section 25BB of the Income Tax Act, No. 58 of 1962 (“Income Tax Act”). Accordingly, qualifying distributions received by local tax residents must be included in the gross income of such participatory interest holders (as a non-exempt dividend in terms of section 10(1) (k) (aa) of the Income Tax Act), with the effect that the qualifying distribution is taxable as income in the hands of the PI holder. These qualifying distributions are, however, exempt from dividend withholding tax in the hands of South African tax resident participatory interest holders, provided that the South African resident participatory interest holders have provided the following forms to their Central Securities Depository Participant (“CSDP”) or broker, as the case may be, in respect of uncertificated PIs, or the Transfer Secretaries, in respect of certificated PIs: Qualifying distributions received by non-resident participatory interest holders will not be taxable as income and instead will be treated as ordinary dividends but which are exempt in terms of the usual dividend exemptions per section 10(1) (k) of the Income Tax Act. It should be noted that until 31 December 2013 qualifying distributions received by non-residents were not subject to dividend withholding tax. From 1 January 2014, any qualifying distribution received by a non-resident from a REIT will be subject to dividend withholding tax at 15%, unless the rate is reduced in terms of any applicable agreement for the avoidance of double taxation (“DTA”) between South Africa and the country of residence of the PI holder. Assuming dividend withholding tax will be withheld at a rate of 15%, the net amount due to non-resident participatory interest holders will be 50,4135 cents per participatory interest. A reduced dividend withholding tax rate in terms of the applicable DTA, may only be relied on if the non-resident PI holder has provided the following forms to their CSDP or broker, as the case may be, in respect of the uncertificated PIs, or the Transfer Secretaries, in respect of certificated PIs: a) a declaration that the dividend is subject to a reduced rate as a result of the application of a DTA; and b) written undertaking to inform their CSDP, broker or the Transfer Secretaries, as the case may be, should the circumstances affecting a the reduced rate change or the beneficial owner cease to be the beneficial owner, both in the form prescribed by the Commissioner for the South African Revenue Service. Non-resident participatory interest holders are advised to contact their CSDP, broker or the Transfer Secretaries, as the case may be, to arrange for the abovementioned documents to be submitted prior to payment of the distribution if such documents have not already been submitted, if applicable. 8 291 9 742 541 8 739 3,6 342 135 By order of the STREM Board Condensed consolidated statement of financial position R’000 Unaudited 31 Dec 2013 Unaudited 31 Dec 2012 Martin Harris Company Secretary James Templeton Chief Executive Officer Ben van der Ross Chairman Bryanston 18 February 2014 Condensed consolidated statement of changes in equity Audited 30 Jun 2013 Participatory interest Revaluation and other reserves Retained earnings Noncontrolling interest Total 3 669 396 2 105 118 (1 287) 1 994 5 775 221 Total comprehensive income for the period 536 736 (4 420) 532 316 Distribution to participatory interest holders (276 946) R’000 Assets Non-current assets 9 902 819 9 147 203 9 366 817 Investment properties Allowance for future rental escalations Unamortised upfront lease costs 9 066 575 155 569 43 972 8 489 374 128 863 39 037 8 640 590 130 605 39 306 Fair value of investment properties Listed property investment Derivative financial instruments 9 266 116 626 312 10 391 8 657 274 482 274 7 655 8 810 501 537 102 19 214 Current assets 240 531 115 401 158 017 Balance at 1 July 2013 Accounts receivable Derivative financial instruments Cash and cash equivalents 198 621 12 567 29 343 88 374 — 27 027 131 176 4 203 22 638 Participatory interests repurchased Total comprehensive income for the period 457 285 Distribution to participatory interest holders (292 057) Investment properties held for sale 476 425 458 800 589 905 10 619 775 9 721 404 10 114 739 Transfer to fair value reserve (net of deferred taxation) Equity and liabilities Participatory interest holders’ capital and reserves Non-current liabilities 6 684 653 1 424 920 5 979 450 2 299 656 6 590 162 1 440 682 Interest-bearing debt Derivative financial instruments Deferred taxation 1 363 914 49 981 11 025 1 911 574 156 108 231 974 1 362 722 62 737 15 223 Current liabilities 2 510 202 1 442 298 2 083 895 Short-term portion of interest-bearing debt Accounts payable Derivative financial instruments Distribution payable to participatory interest holders 1 893 307 17 292 850 000 246 650 68 702 276 946 1 510 000 262 056 18 929 292 910 Total assets Total equity and liabilities Balance at 1 July 2012 Participatory interests repurchased 170 670 306 056 10 619 775 9 721 404 10 114 739 (51 141) (51 141) Transfer to fair value reserve (net of deferred taxation) Balance at 31 December 2012 Balance at 31 December 2013 (276 946) 259 790 (259 790) 3 618 255 2 364 908 (1 287) (2 426) 5 979 450 — 3 618 255 2 976 706 (1 287) (3 512) 6 590 162 (2 602) 454 683 (68 135) (68 135) 165 228 (165 228) 3 141 934 3 550 120 (1 287) (292 057) — (6 114) Reconciliation between earnings and headline earnings and distribution R’000 Profit for the period attributable to equity holders Adjusted for: Net fair value gain on revaluation of investment properties Deferred taxation on revaluation of investment properties Unaudited Six months ended 31 Dec 2013 Unaudited Six months ended 31 Dec 2012 Audited Year ended 30 Jun 2013 454 683 532 316 1 435 938 (86 072) — (290 157) 14 010 Sectoral segments – R’000 Administrative and corporate Office Retail Industrial Revenue 330 462 296 831 113 842 741 135 Revenue 323 861 281 672 111 188 716 721 6 601 15 159 2 654 24 414 190 347 172 399 71 786 4 580 538 3 591 003 1 571 000 9 742 541 Allowance for future rental escalations 368 611 Distribution payable to participatory interest holders 758 604 (24 414) (3 998) (14 256) 12 369 (4 546) 29 035 11 609 (5 401) (128 736) 4 416 (32 290) (4 604) (46 527) Investment properties (1 814) — (4 198) 4 347 28 713 1 990 5 506 28 713 5 042 292 057 276 946 569 856 59,31 — 55,69 — 55,69 58,90 55,69 114,59 492 423 583 497 299 883 497 299 883 493 816 182 92,08 498 587 863 106,76 497 949 166 288,37 51,38 152,35 The calculation of headline earnings per participatory interest is based on net profit for the period, adjusted for non-trading items, of R368,6m (2012: R256,2m), divided by the weighted average number of participatory interests in issue during the period of 493 816 182 (2012: 498 587 863). 440 580 Revenue 243 811 178 293 83 852 505 956 – Western and Eastern Cape 39 268 26 925 11 778 77 971 – KwaZulu-Natal 25 902 46 590 15 558 88 050 – Free State 14 880 29 864 323 861 281 672 111 188 716 721 – Gauteng 44 744 Investment properties 3 531 459 2 347 335 1 180 450 7 059 244 – Western and Eastern Cape 568 825 360 015 185 850 1 114 690 – KwaZulu-Natal 319 754 543 729 204 700 1 068 183 – Free State 160 500 339 924 4 580 538 3 591 003 1 571 000 9 742 541 – Gauteng 74,65 6 048 Geographical segments (6 340) (99 141) 59,31 Distribution per participatory interest Interim (cents) Final (cents) 256 169 Total — Operating profits (471 542) (205 792) Headline earnings Adjusted for: Allowance for future rental escalations Amortised upfront lease costs Unrealised (surplus)/deficit on interest-rate swaps Revaluation of derivative financial instrument relating to share appreciation rights scheme Unrealised gain on listed property investment (Credit)/charge in respect of leave pay provision and share appreciation rights scheme Fee paid on cancellation of interest-rate swap agreements Deferred taxation – other timing differences 6 684 653 Segmental information Segmental result Headline earnings per participatory interest (cents) 22 638 The appointment of Mr Gerhard van Zyl to the Board of STREM, was approved by the Financial Services Board on 10 September 2013. 9 400 406 Investment properties increased by R342,1m made up of capital expenditure including capitalised interest predominantly at Wonderpark Shopping Centre, of R353,8m, less disposals of R119,0m, depreciation of R7,2m and a net upward revision in property values of R114,5m. Net cash generated from financing activities 27 027 3 257,1 Local tax resident participatory interest holders as well as non-resident participatory interest holders are encouraged to consult their professional advisors should they be in any doubt as to the appropriate action to take. The calculation of earnings per participatory interest is based on net profit for the period of R454,7m (2012: R532,3m), divided by the weighted average number of participatory interest in issue during the period of 493  182 816  (2012: 498 587 863). 29 343 Per statement of financial position Directorate 23 392 278 243 40 500 (51 141) 247 803 — Cash and cash equivalents at the end of the period 100,0 (2,4) 0,5 8,4 2,6 (150 872) 450 22 188 3 259,5 Less: Costs capitalised not yet amortised 11 102 9 967 4 609 (51 141) 136 655 (3) 196 662 75,7 24,3 4 580 538 3 591 003 1 571 000 (43 144) 4 839 22 188 8,5 % of debt 2 466,6 792,9 10 552 9 116 4 521 Difference (R’000) (68 135) 384 362 (4 080) 85 511 Total Amount (R’m) 4 557 146 3 312 760 1 530 500 Office Retail Industrial Difference (%) (282 999) 6 705 22 638 5 years 9 months R/m2 Participatory interests re-purchased Increase in interest-bearing debt Derivative acquired in respect of share appreciation rights scheme 312 147 9,2 6,1 Dec 2013 (R’000) Number of participatory interests in issue at the end of the period Weighted average number of participatory interests in issue Earnings per participatory interest (cents) Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Debt – Swap Debt – Floating R/m2 (45 340) Cash generated from operations Finance income Interest paid Taxation paid Fee paid on cancellation of interest-rate swap agreements Distribution to participatory interest holders Weighted average term June 2013 (R’000) 1 435 938 Deferred taxation Weighted average rate % b) written undertaking to inform the CSDP, broker or the Transfer Secretaries, as the case may be, should the circumstances affecting the a exemption change or the beneficial owner cease to be the beneficial owner, both in the form prescribed by the Commissioner for the South African Revenue Service. Participatory interest holders are advised to contact their CSDP, broker or the Transfer Secretaries, as the case may be, to arrange for the abovementioned documents to be submitted prior to payment of the distribution, if such documents have not already been submitted. Vacancies Excluding the straight-lining adjustments in respect of future rental escalations, revenue rose by 6,8% over the comparable period. This 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. Income from the Fund’s listed investment in Australia increased by 17,5% due to an increase in the distribution per unit received from GOZ, the depreciation of the rand against the Australian dollar and increased units being held as a result of the Fund following its rights in respect of a rights issue held in December 2013. Excluding income received in respect of the rights issue and the reinvestment of the December 2012 distribution, the increase amounted to 13,2%. As at 31 December 2013, 75,7% of the Fund’s debt had been fixed for periods of between two and 11 years, with a weighted average length of five years, nine months, at an average of 8,5%. a) a declaration that the distribution is exempt from dividends tax; and * n effective possession date of 15 April 2013 has been agreed to with the purchaser. A Results Contractual escalations on the bulk of the portfolio, combined with significant leasing progress and stringent cost control, including savings from the property management tender, have resulted in the Fund achieving an increase in distributable income during the period. Sector Georgian Place (sectional title units) 261 Surrey Avenue Fleetway House Montana Value Centre At December 2013 GOZ’s unit price as quoted on the ASX was AUD 2,47 resulting in Emira’s investment of 27 225 813 units, amounting to 5,7% of the units in issue, being valued at R626,3m. Emira has a moderate level of gearing with debt to total assets at 31 December 2013 equating to 30,6%. The forecast financial information on which this statement has been based has not been reviewed or reported on by the Fund’s auditors. Disposals In September 2013, the Fund purchased 4 876 300 PIs at a total cost of R68,1m. Debt 500 424 Basis of preparation and accounting policies The condensed consolidated interim financial statements of Emira Property Fund (“Emira” or “the Fund”) have been prepared in accordance with International Financial Reporting Standards (“IFRS”) including IAS 34, and are in compliance with the Listings Requirements of the JSE Limited. The accounting policies used in the preparation of these financial statements are consistent with those used in the annual financial statements for the year ended 30 June 2013. As a result of the amendment to the service charge arrangements, in terms of IFRS, the risk and rewards of the manager of Emira, Strategic Real Estate Managers (Pty) Limited (STREM) are deemed to be attributable to Emira. The financial statements of STREM have therefore been consolidated with those of Emira, even though Emira has no direct or indirect shareholding in STREM. This report was compiled under the supervision of Peter Thurling CA(SA), the Chief Financial Officer. 19 February 2014 For the detailed interim report visit our website: www.emira.co.za Fund Manager: Strategic Real Estate Managers (Pty) Limited Directors of the Fund Manager: BJ van der Ross (Chairman)*, JWA Templeton (Chief Executive Officer), MS Aitken*, BH Kent**, V Mahlangu**, NE Makiwane**, W McCurrie*, MSB Neser**, V Nkonyeni*, PJ Thurling, U van Biljon, G van Zyl* *Non-executive Director **Independent Non-executive Director Registered address: 1st Floor, Optimum House, Epsom Downs Office Park, 13 Sloane Street, Bryanston Sponsor: Rand Merchant Bank (a division of FirstRand Bank Limited) Transfer Secretaries: Computershare Investor Services (Pty) Limited, 70 Marshall Street, Johannesburg, 2001