May 27 2026 14:45
PRETORIA, SOUTH AFRICA
JSE-listed Octodec Investments recently released financial results for the six months to end-February 2026, soon after which Emira Property Fund increased its stake to 23.5% of the company.
James Day, CEO of Emira, said: “Emira is pleased to have surpassed its goal of acquiring a strategic 20% stake in Octodec by concluding the voluntary offer at 23.5%.”
“Seeing as our shareholding was predominantly acquired from major institutional shareholders, what was an already thinly traded share will be even more illiquid going forward. However, as a long-term strategic shareholder this is not an issue for Emira and we are excited to support Octodec’s growth and performance,” he said.
Emira is largely owned by Castleview Property Fund. Castelview’s strategy is to take stakes in funds it feels can be turned around heavily or improved. Its founder and CEO James Templeton has shied away from all-out takeovers so far.
Emira invests indirectly through equity interests alongside specialist co-investors. In the US, it holds stakes, ranging between 45% and 49%, in six dominant, grocery-anchored centres with US-based partner The Rainier Group. In Poland, Emira has a 45% equity stake in DL Invest, a Luxembourg-headquartered developer and long-term investor in industrial and logistics centres, mixed-use offices, and retail parks located across Poland. It also owns a variety of assets across South Africa.
Day said Octodec needs liquidity in its shares. Speaking about its results at a presentation, Emira’s team said it had made meaningful progress in reshaping its portfolio through an active disposal and reinvestment programme. During the period, the group disposed of 10 properties for R88.7m, while also announcing the disposal of Killarney Mall for R397.5m. These transactions formed part of “a broader initiative to reduce exposure to smaller, non-core and underperforming assets, while redirecting capital into larger, higher-quality opportunities with stronger income potential and scalability,” it said.
Deputy CEO and Chief Financial Officer, Riaan Erasmus said in a statement following the release of the results: “We are making steady progress in reducing the long tail of smaller assets and concentrating the portfolio around properties that offer scale, stronger income profiles, and long-term relevance.”
This repositioning is supported by a solid balance sheet, he said. The group’s loan-to-value (LTV) ratio improved to 37.3%, comfortably within the targeted range, while R1.1bn in available facilities provides flexibility to support ongoing capital allocation. Refinancing during the period was achieved at more favourable margins and tenor, contributing to improved funding efficiency.
Rental collections were at 98.5%, reflecting tenant engagement and cash flow stability, while vacancies trended down, particularly within the residential portfolio. Performance across the core asset base remained stable despite a mixed operating environment.
Within the portfolio, residential was a key contributor, supported by sustained demand for well-located, affordable accommodation. Rental income increased by 5.5% during the period, vacancies reduced to 7.7%, and like-for-like rental growth of 5.7% reflects improved occupancy levels, steady rental escalations, and targeted asset enhancements. Octodec has focussed on investing in residiential property for decades.
“Demand for well-located, cost-effective accommodation remains a key underpin of our performance, particularly in our core Tshwane portfolio,” CEO Jeffrey Wapnick said.
The retail portfolio showed signs of stabilisation, with street retail performance beginning to recover in key nodes, including Johannesburg, supported by improving footfall and trading conditions. Shopping centres delivered like-for-like rental growth of 7.7% with the portfolio (excluding Killarney Mall) effectively fully let.
The office portfolio remained broadly stable, with management continuing to assess select assets for potential disposal or conversion. This forms part of a broader approach to unlocking value through repositioning and repurposing. The industrial portfolio delivered steady growth, with rental income increasing by 6.8%, supported by continued demand for smaller warehouse and mini-industrial space.
Unlocking Octodec’s Growth Pipeline: Yethu City
Yethu City demonstrated strong demand and operational success, reinforcing its role as a key strategic platform for future growth. The development was fully let within 3.5 months of launch and has maintained near- to full occupancy, while also being recognised as the Best New Affordable Housing Development at the 2025 API Summit Awards. Its success is underpinned by an integrated offering combining co-living design, smart technology, and community-focused planning. Yethu City was also awarded at last week’s Reside Awards as the best Affirdable Multi-Family Residential Project.
Building on this success, Octodec is looking to expand the Yethu City concept.
“As we streamline the portfolio, we are creating capacity to reinvest into scalable formats that align with structural demand in the urban housing market,” Erasmus said.
During the period, R71m was deployed into capital projects, focused on yield-enhancing upgrades, energy and water resilience initiatives, and improvements to tenant experience. Recent solar installations returned approximately R5.2m in cost savings for the period. Proceeds from disposals continue to support reinvestment while maintaining balance sheet flexibility.
Octodec has upgraded its guidance for the 2026 financial year, expecting distributable income and distributions to grow by between 3% and 5%.
“Execution is increasingly visible in the shape of the portfolio and the quality of earnings. We are encouraged by the momentum in the business and the opportunities ahead. With a clearer, more focused portfolio, we believe Octodec is well positioned to build on this trajectory,” said Wapnick.
alistair@propertyflash.co.za
