Oryx Properties committed N$228 million in capital allocation for the interim period ending 31 December 2024, earmarked for key developments including the Maerua Mall refurbishment and the Goreangab project.
The company allocated N$7 million for the Maerua Mall refurbishment and N$196 million to the Goreangab project.
According to Simonis Storm’s Junior Equity Analyst, Kara van den Heever, these investments aim to enhance asset value and improve rental income streams as cash generated from operations stood at N$128.6 million, with a tenant collection rate of 101%.
This comes as the investment property portfolio was valued at N$4.242 billion at the period’s end, incorporating N$74 million in capital additions.
The valuation increase reflects capital expenditures on strategic developments, including Maerua Mall and Goreangab, rather than broad-based revaluation uplifts.
“The absence of significant fair value gains suggests that valuation adjustments were muted in this period, aligning with stable market conditions. The fair value adjustment on investment properties was N$1.85 million (Dec 2023: N$6.39 million), indicating limited property revaluations during the period,” said Kara van den Heever.
Revenue increased by 5.4% year-on-year to N$237.2 million, driven by positive rental escalations and strong tenant renewals.
Net rental income grew to N$162.4 million, reflecting a 5.3% increase despite property expenses rising by 5.7%.
The EBITDA margin remained stable at 68.5%. Van den Heever noted that headline earnings per linked unit declined to 65.24 cents, primarily due to the non-recurring N$33 million settlement income from the prior period.
“Core earnings, represented by Funds from Operations (FFO), totalled N$74.2 million, translating into an FFO yield of 6.6% on NAV. Adjusted FFO (AFFO), which excludes maintenance capex and straight-line rental adjustments, amounted to N$67.3 million, reflecting the Group’s underlying earnings capacity,” she said.
Meanwhile, gearing improved to 36.1%, with total interest-bearing borrowings at N$1.67 billion.
The weighted average cost of debt reduced to 9.3%, supported by a repo rate cut and improved funding efficiency. The hedge ratio increased to 49%, mitigating interest rate volatility risks.
Furthermore, the net asset value per linked unit rose to 2,436 cents, though the discount to NAV widened to 47.4%, suggesting ongoing market scepticism. The implied cap rate on the portfolio stands at 8.7%, with an equity trading yield of 10.3%.
The company retains N$311 million in unutilised facilities, providing ample liquidity to meet its short-term commitments. The debt-to-property value ratio stands at 36.1%, reinforcing a stable leverage position.
