Oryx aims to grow the total asset base to N$4.5 bln
Opportunities in the current market
Rental operating income declined by 1.4% from the previous year, which was mainly due to the impact that Covid-19 continued to have on the tenants operating in the retail and tourism industry.
Oryx Properties Limited, a property loan stock company listed on the Namibian Stock Exchange and almost entirely owned by Namibians, is proud to share the annual financial results published on 2 September 2022. Says Ben Jooste, CEO of Oryx Properties: “Despite tough economic conditions which have been prevailing since 2018, we are excited and confident about our results and our vision for the future. We see a lot of opportunity within the current market. We wish to thank our management team, employees and service providers for their commitment and dedication during the year and we extend our gratitude to our tenants, financiers, board, and unitholders for their continued support.”
Jooste went on to say that rental operating income declined by 1.4% from the previous year, which was mainly due to the impact that Covid-19 continued to have on the tenants operating in the retail and tourism industry, with negative rental reversions ending at 7.3% (2021: 9.14%) for the year. The core portfolio and residential vacancy factors improved to 5.4% (June 2021: 5.9%) and 1.9% (June 2021: 11.2%) respectively.
He added: “Performance in the latter part of the financial year went particularly well and better than anticipated, which was the result of proactive initiatives to reduce tenant debtor balances, including restructuring significant tenancy lease terms. Covid-19-related rent concessions were suspended during the year and our average debtor’s collection improved to 96% (2021: 89%). The outcome was a reduction of other expenses, which includes receivable impairments, to N$34 million (2021: N$61 million).”
The Oryx Group’s distribution per linked unit for the year ended 30 June 2022 amounts to 101.75cpu (June 2021: 99.75cpu), being interest of N$89 million (June 2021: N$87 million). The interest distribution for the 2022 financial year was based on 75% of total distributable income, whereas the 2021 interim and final interest distributions were based on 90% and 75% respectively. On a 100% pay-out basis, distribution per linked unit increased from 120.44cpu in 2021 to 135.67cpu in 2022, which represents an increase of 12.6% from the prior year.
The portfolio, including investment property held for sale, was independently valued at N$2.9 billion (2021: N$2.8 billion) by Mills Fitchet Magnus Penny with a positive fair value adjustment of N$47 million (2021: negative N$94 million).
Portfolio
The positive fair value adjustment is mainly attributed to the industrial and office segments, increasing by 2% and 4% respectively in value. The industrial portfolio value increase was underpinned by positive rental growth and lease terms where solid tenancies are in place. The offices portfolio value increase was mainly attributed to A-grade offerings, such as Maerua Mall, where rental levels increased with a low vacancy outlook expectancy. The Channel Life building was classified as investment property held for sale during the year, given its probability to sell the asset in the next twelve months.
Jooste advised that the Namibian economy was estimated to have recovered moderately during the 2021 calendar year, and was projected to improve during 2022 and 2023, which was supported by the growth in the mining and most tertiary industries. “Namibia’s domestic growth remains constrained by the aftereffects of the Covid-19 pandemic and high energy prices for fuel and gas coupled by supply disruptions globally. The rise in inflation and interest rates is expected to have an impact on our business. Initiatives such as the interest rate hedges taken out during the 2021 financial year reduces our exposure to rising interest rates.”
The Board approved the Oryx group's strategy for the next three years until 2025, with the aim to grow the total asset base inorganically to N$4.5 billion. Management is excited about the new strategy and sees a lot of opportunity within the current market. In the short to medium term, Management is focused on growing the fund geographically across Namibia, reposition the portfolio to exit high risk sectors and reduce the concentration risk of Maerua Mall.
Jooste concluded by thanking the management team, employees and service providers for their commitment and dedication during the year. “We are also grateful to our tenants, financiers, board, and unitholders for their continued support and look forward to a successful 2022/23.”