Oryx Properties says its rental cash flow increased 6.4% to N$356.8 million during the year ended 30 June 2023.
The group recorded strong growth in the retail segment, increasing 6% to N$229 million, followed by industrial, increasing 8.4% to N$79.6 million.
However, slower growth was seen in the residential and fund segments, both increasing 4.9% year-on-year (y/y) to N$36.8 million and N$11.5 million, respectively.
“Management highlighted rental reversions increased to 3.7% and debtors collections improved to 101.0%,” Oryx Properties noted in its financials.
Oryx Properties CEO Ben Jooste expressed his satisfaction with the results, highlighting the company’s commitment to its growth strategy and its ability to address challenges while creating value for stakeholders.
“Oryx Properties invested significantly in capital expenditure during the fiscal year, with a total outlay of N$72 million, up from N$32 million in 2022. Notable capital projects included a N$4 million solar project implemented at Maerua Mall, Gustav Voigts Centre, Erf 135 Scania, and Urban Village at Elisenheim,” he said.
Additionally, he added that N$22 million was allocated to upgrade the offering at Gustav Voigts Checkers, and N$30 million was dedicated to constructing a new industrial warehouse on Erf 3519 Iscor Street.
Furthermore, the company entered into a lease agreement to acquire the Maerua Crossings right-of-use investment property, representing an N$6 million investment.
CEO Ben Jooste acknowledged that tenant retention had presented a challenge during the year, with a decrease from 97% in 2022 to 84%.
He also noted a 20% increase in finance costs, “primarily driven by interest rate hikes, as another challenge faced by the company.”
Meanwhile, Oryx Properties reported that its portfolio was independently valued at N$3.1 billion, up from N$2.8 billion in 2022, by Mills Fitchet Magnus Penny.
The portfolio also saw a positive fair value adjustment of N$100 million, compared to N$47 million in the previous year.
Francis Heunis, CFO of Oryx Properties, attributed the positive fair value adjustment to the retail segments, “specifically Maerua Mall and Baines Centre, which increased by N$40 million and N$21 million,” respectively.
Heunis expressed gratitude to loyal tenants, emphasising their crucial role in achieving positive rental growth and reversions.
Oryx Properties also issued N$248.5 million in debt on the Namibian Stock Exchange during the fiscal year, with the ORYJ25 bond oversubscribed by 140%.
The company also made strides in its Environmental Social and Governance (ESG) strategy to enhance prosperity for all stakeholders.
This comes after Oryx Properties in August completed the acquisition of the Dunes Mall in Walvis Bay after raising N$312.7 million from its recent rights issue, proceeds of which were directed towards the N$632.7 million purchase price.
The Namibian Stock Exchange-listed company said the development concludes the first phase of its 2025 corporate strategy to grow the fund by 60% in three years.
