• Market Watch

Geographical diversification bolsters Oryx

• 4 Weeks Ago - 2024-09-25 00:00:00

For the year ended 30 June, Oryx Properties has continued its positive growth trajectory, providing a total return of 18.64% to unit holders. For the year ended June, the group reported a total comprehensive profit of N$384.8 million, a significant increase from N$190.9 million in 2023.
Net property income rose to N$303.1 million from N$235.4 million, while basic earnings per linked unit surged to 461.00 cents compared to 287.82 cents in 2023.
Oryx CEO Ben Jooste said the company's efforts to diversify led to it enhancing its revenue streams.
"Oryx’s performance highlights our strategic focus on growth and delivering sustainable value to our unit-holders," he said.
"Our efforts to diversify our asset base geographically, enhance operational efficiency, manage costs and maintain strong and pro-active stakeholder and tenant relationships have been key in achieving these results," he added.

Overview
Jooste said Oryx’s total portfolio value increased by N$1.072 billion, or 35%, to N$ 4.167 billion, up from N$3.095 billion in 2023, driven by the acquisition of Dunes Mall and strategic investments across various property segments.
"Notably, the Dunes Mall acquisition, concluded in August 2023, has outperformed expectations, delivering an income return of 9.54% and a total return of 21.82%. Commercial vacancy rates improved across the portfolio, decreasing from 6.8% in 2023 to 4.2% in 2024, reflecting robust tenant retention and proactive engagement strategies," Jooste said.
The group’s Croatian investment contributed significantly to distributable income, achieving a cash yield of 9.8% before finance costs and contributing 17% of distributable income, demonstrating the success of Oryx’s international diversification. Despite macroeconomic challenges, Oryx achieved a 27% increase in rental operating income, reaching N$455 million, with tenant collections averaging 99%.
The group’s prudent financial management ensured continued strength, resulting in a distribution of 103.00 cents per unit, slightly lower than the previous year’s 105.25 cents due to the one-month delay on the Dunes acquisition.

Shareholder value
Oryx, Jooste said, is committed toward creating value for shareholders.
"We are committed to sustaining long-term growth and enhancing shareholder value. While our distribution per unit saw a minor decline, our total distributions increased by 28% year-on-year. Looking ahead, we are focused on improving the quality of our earnings and maintaining a sustainable distribution payout ratio."
He said as the company looks towards the future, it remains optimistic about Namibia's growth prospects and its ability to meet its target of achieving a fund size of N$4.5 billion and annual revenue of N$450 million by 2025.
"Despite anticipating short-term challenges, including national elections and global economic uncertainties, Oryx’s robust strategy positions the group for continued success. We are well on track to meet our long-term goals. With a solid foundation in place and favourable market sentiment, we are confident in our ability to drive future growth and deliver value to our unit holders," he added.