Oryx Properties Limited (Oryx) reported a 35% increase in its portfolio value, reaching N$4.2 billion for the year ended 30 June 2024, up from N$3.0 billion in 2023.
According to the audited financial statements for the period, the growth is attributed to the acquisition of Dunes Mall, efforts to reduce vacancies, and improved recovery ratios.
“Oryx’s total portfolio value increased by 35% to N$4.167 billion (2023: N$3.095 billion). Key contributors to our success included the acquisition of Dunes Mall, significant efforts to reduce vacancies across all segments, and a strong emphasis on enhancing recovery ratios as well as managing expenses,” said the report.
The Dunes Mall acquisition was concluded on 1 August 2023, and the asset’s financial performance has exceeded expectations.
“The asset achieved an income return of 9.54% for the year, and the total return for this investment for the period ended 30 June 2024 stands at 21.82%. The asset is situated at Walvis Bay in the Erongo Region of Namibia, an area which we believe is strategically positioned for significant growth in the medium term,” said Oryx.
This comes as the Group maintained positive momentum, achieving a 27% increase in rental operating income of N$455 million during the period under review from N$357 million in 2023.
Operational performance continued strengthening, driven by robust rental growth and effective cost management.
Meanwhile, commercial vacancies reduced to 4.2% (2023: 6.8%), and tenant collections averaged 99% (2023: 101%).
Despite challenges in consumer sentiment, prudent financial and cash flow management strategies continue to fortify the Group’s position.
“Proactive stakeholder engagements have been vital in achieving these results. Tenant engagements allowed us to anticipate their needs to avoid sudden vacancies or large expenses and make swift and informed decisions,” said the report.
Additionally, an extensive network and close relationships with other property sector role players in Namibia enabled the company to stay abreast of market developments, further facilitating effective risk management.
Meanwhile, capital expenditure (excluding the Dunes Mall acquisition) for the year increased to N$138 million from N$72 million in 2023.
“N$43.1 million was incurred on the Goreangab land and development, N$21.7 million on the Maerua development project, and N$2.5 million on solar projects at seven of our industrial assets. Our strategy combines yield-enhancing opportunities with defensive spending requirements to sustain growth for unitholders,” said Oryx.
The Board approved a total distribution of 51.50 cents per unit for both interim and year-end distributions, up from 54.25 and 51.00 cents per unit in 2023, respectively.
This brings the total distribution to N$118 million, a 28% increase from last year’s N$92 million.
“However, the distribution per unit decreased due to delays in acquisitions. We are focused on long-term growth and enhancing shareholder value by improving distribution per unit and maintaining a sustainable payout ratio,” said the company.
Despite anticipating short-term challenges in the operating environment, including national elections and global economic uncertainties, Oryx is optimistic regarding Namibia’s and its growth prospects.
“Our strategy, designed to achieve a fund size of N$4.5 billion and annual revenue of N$450 million by 2025, underscores our commitment to long-term growth and stability. We are well on track to meet these goals, having already achieved a fund size of N$4.167 billion and rental operating income of N$455 million by 2024,” said Oryx.
