Archives for May 14, 2025

Emira’s beehives are a sweet investment in tomorrow

This May, pinstripes are out and bee stripes are in. The United Nations has declared 20th of May World Bee Day, providing the perfect opportunity for Emira Property Fund to celebrate the success of its own tiniest, busiest VIP – Very Important Pollinator – tenants.

For the last five years, SA REIT Emira (JSE: EMI) has been quietly putting its weight behind an essential global commodity: bees. During that time, the fund’s littlest property investment has become one of its proudest, with 14 beehives at five of its properties, all abuzz with activity.

As Ulana van Biljon, Chief Operating Officer of Emira, explains, “The beehive project was chosen to highlight the decline of global bee populations, because bees and other pollinators are under serious threat, yet they contribute so much to society, as well as to the biodiversity of our properties. Our hives provide a safe place for honeybees to live and breed.”

According to the United Nations (www.un.org/en/observances/bee-day) over 75% of the world’s food crops – nutrient-dense fruit, vegetables, nuts and seeds – and 35% of global agricultural land depends on animal pollinators. The greatest of these are the 20,000 species of bees worldwide.

In 2020, Emira began installing beehives at eight of its properties in Gauteng and KwaZulu-Natal. Subsequently, three of the properties were sold, so currently Emira has 14 hives across five properties.

“Our bee conservation project is a holistic approach to reducing the impact of environmental degradation, which goes beyond planting trees,” says van Biljon.

The first Emira hives were installed at Knightsbridge office park in the heart of the Bryanston business node, and Hyde Park Lane, a tranquil corporate address in Sandton. These sites were selected, according to van Biljon, “due to their safe site location, the biodiversity of the surrounding landscape and the abundance of flowering plants which provide the nectar flow for the bees to produce honey.”

Both bee and human welfare concerns were carefully considered, she adds, noting that the public live in harmony with bees anyway: there are many natural swarms of bees throughout South African cities. Emira’s beehives are managed in a secure, controlled environment, away from areas of heavy foot traffic and clearly sign-posted, while beekeeping activities take place at night.

The results so far have been sweet: the busy little workers have produced 106kg of honey for the March 2025 harvest from four apiary sites, namely Knightsbridge (19kg), Hyde Park Lane (16kg), Wonderpark (53kg) and Albury Park (18kg). A by-product of the conservation initiative, the honey is harvested after the summer months when the bees produce a surplus.

However, no honey could be harvested from the two hives at One Highveld, as both underwent “absconding” at the same time – absconding being a normal phenomenon within honeybee hives, part of a cycle in which an old queen is replaced with a younger one. Any existing honey was then “stolen” by other honeybees, another natural turn of events.

The honey was shared among Emira staff and tenants, creating awareness of the importance of preserving biodiversity. To the delight of the recipients each harvest tasted unique as bees tend to collect nectar within 3km of their hive. This meant Johannesburg honey was crafted largely from exotic garden ornamentals like jasmine, lavender, rosemary and jacaranda trees. Meanwhile, in Pretoria North – where hives are situated at Wonderpark Shopping Centre – an abundance of indigenous plants, acacias, and grassland flowers created honey with darker, flavourful herbal tannins.

“This biodiversity is vital for healthy ecosystems, which support both human well-being and the economy,” says van Biljon. “Healthy ecosystems form the ecological infrastructure of the country, providing clean air and water, fertile soil and food.”

The bees must have realised they were on to a sweet rent-free deal at Emira: in April 2024, passing bees took up residence in a pylon at Boskruin Shopping Centre, not an ideal location. Once they were safely removed by a beekeeper, catch hives were installed to prevent more unplanned bee incursions. These will capture swarming honeybees, allowing them to be relocated to suitable sites within the Emira portfolio, or to commercial farms within the region. Thus, urban sites remain safe, and honeybee stocks are secured.

As part of Emira’s dedication to best environmental, social and governance (ESG) practices, it has also committed to a “No Net Future Loss” policy, conserving and promoting biodiversity across its portfolio and reducing the company’s impact on the environment.

“The country’s natural ecosystems are threatened by land use change, degradation and invasive alien species,” says van Biljon. “Climate change worsens these threats, but healthy ecosystems offer natural solutions that increase resilience. They protect communities from extreme weather events and enhance natural resources, livelihoods, food security and habitats for animals and plants.”

With the beehive project, Emira is putting the bee firmly into business, living up to its reputation as a truly diversified, balanced real estate investment trust.

Dipula reports strong interim results as it marks its 20th year

Dipula Properties (JSE: DIB) has reported a strong set of interim results for the six months ended 29 February 2025, demonstrating continued strategic and operational momentum in a persistently challenging macroeconomic environment. The property portfolio increased in value by 5% to R10.3 billion, supporting a 6% rise in net asset value. Dipula’s distributable earnings per share (DPS) increased 4.2% for the half year, on track with full year guidance of 4.0% to 6.0%.

Dipula Properties (formerly Dipula Income Fund) is a prominent, diversified South Africa-focused REIT with a long-standing track record of sustainable value creation. As a black-managed property company celebrating two decades of operation this month, and nearly 15 of those as a listed entity, Dipula exemplifies a rare blend of resilience, transformation and consistent delivery that continues to contribute to the real estate sector and South Africa’s broader economic landscape.

The Dipula portfolio includes 161 retail, office, industrial and residential properties across South Africa, predominantly in Gauteng. The portfolio is defensively positioned with retail centres in townships, rural, and urban convenience locations contribute 67% of portfolio income.

Izak Petersen, CEO of Dipula Properties, comments, “Dipula’s operational performance reflects solid delivery and a strongly defensive position in persistently challenging conditions. However, we have felt the impact of higher prevailing interest rates and hedging costs relative to expiring hedge instruments. Encouragingly, we are seeing signs of recovery in the office sector and continued stability in our retail and industrial portfolios, with sustainability initiatives expected to support long-term performance.

Dipula’s revenue for the six months was similar to the prior period at R760 million. Net property income rose 3.0%, constrained by property related expenses, which grew 6.0%, mainly driven by municipal tariff increases. However, cost control remains a management priority, and the total cost-to-income ratio rose marginally to 43.5% (FY24: 42.6%), driven by improved recoveries and Dipula’s solar energy roll-out. The administrative cost-to-income was unchanged at 4%.

Operational highlights included significant leasing activity, contributing to a reduction in overall portfolio vacancies from 8% to 7% during the period. Dipula additionally achieved a weighted average positive renewal rental rate across the portfolio, underpinned by positive rates across the portfolio. The office portfolio recorded a renewal rate of 8.3% followed by industrial at 6.2% and retail at 2.4%. New and renewed leases concluded during the period amounted to R309 million, securing sustainable income streams.

Tenant retention of 79% is lower than in recent periods as Dipula has adopted stricter tenant criteria to improve tenant quality in its industrial portfolio, specifically for mini-units where there is high tenant turnover. Even with this change, Dipula’s industrial vacancies still decreased. Industrial and logistics assets deliver 13% of Dipula’s rental income and with a vacancy of just 4%, this segment remains stable and sought-after.

Dipula’s retail assets remain core to its performance, offering accessible and well-positioned spaces across diverse communities. The retail portfolio reported steady vacancies at 6%.

Offices comprise 16% of Dipula’s income, offering adaptable, well-situated workspace. The office vacancy rate ended the period at notably lower at 19%, down from 23% in the prior interim period, showing clearer signs of recovery starting. “The office improvement is refreshing, however there is still some way to go, and the Johannesburg office market remains oversupplied and highly competitive.”

Dipula has telegraphed to the market that it intends to sell its affordable and conveniently located residential rental units, which currently represent 4% of income. This is to re-allocate capital to the retail and industrial sectors that are core to its business. This portfolio showed a reduced vacancy rate from 10% to 9% over the six months.

Dipula continues to implement value-enhancing asset management strategies. It invested R117 million in refurbishments and redevelopments. Nearly R70 million of this was for income-generating projects, including solar PV, with the remainder allocated to defensive projects. A portion of the proceeds from R125 million in disposals, achieved at a 4% premium to book value, contributed to funding these projects together. While no acquisitions were completed during the period, Dipula has a strategic pipeline of growth opportunities.

“We’re firmly committed to future-proofing our portfolio,” says Petersen. “We are assessing some interesting opportunities which fall within our core focus, a few of which we hope to close in the short-term. Dipula’s installed solar capacity will more than double to approximately 16MW after the instillation of an additional 9MW of new solar projects to be rolled out during this calendar year.”

Dipula benefits from a strong balance sheet and has maintained prudent debt levels. Gearing was stable, at 36.3% compared to 36.1%, and a steady ICR of 2.8 times at the end of the period reflect a consistently well-managed balance sheet. R400 million in undrawn facilities provide additional liquidity.

Commenting of the operating environment in the second half of Dipula’s financial year, Petersen notes that global uncertainty has intensified amid shifting US trade policies and ongoing tariff disputes, which are expected to place upward pressure on inflation and interest rates. Domestically, South Africa faces persistent fiscal, economic and service delivery challenges, with subdued confidence and higher than anticipated interest rates.

“At Dipula, we remain focused on executing our strategic priorities: driving operational efficiency, optimising our tenant base and recycling capital to reinforce balance sheet resilience.” says Petersen.