New Era Newspaper

New Era Epaper
Icon Collap
Home / Opinion - Oryx Properties Limited maintains positive momentum

Opinion - Oryx Properties Limited maintains positive momentum

2023-03-15  Correspondent

Opinion - Oryx Properties Limited maintains positive momentum

Ben Jooste


For the period ending 31 December 2022, the Group has maintained its positive momentum in financial and operational performance, resulting in rental income increasing by 10.8% (Dec 2021: 2.9%) to N$175 million (Dec 2021: N$158 million), whilst containing vacancies to a minimum and achieving 6.1% (Dec 2021: 5.9%).

We are encouraged by the strong first six months’ performance during which rental reversions amounted to 7% (June 2022: (7.3%)), following tenant collections averaging 104% (Dec 2021: 91%). Improved tenant collections resulted in reversals to provision for bad debts amounting to N$12.5 million, which contributed towards the decrease in other expenses to N$10.2 million (Dec 2021: N$18.5 million). Oryx’s prudent financial and cash flow management strategies have positioned it well, resulting in gearing decreasing to 36.5% (Dec 2021: 38.1%) at period end.

We were pleased with the successful bookbuild for the ORYJ25 bond auctioned on 16 November 2022. The issuance was oversubscribed by a ratio of 1.4 times for a nominal value of N$248.5 million, which further boosted liquidity.

The directors valued the portfolio at N$2.96 billion (June 2022: N$2.91 billion inclusive of investment property classified as held for sale) at period end. Based on this analysis, the value of the property portfolio as at 31 December 2022 is N$53 million higher than at 30 June 2022. The increase in property values relates to capital expenditure incurred amounting to N$53 million (June 2022: N$32 million), which was mainly incurred in the retail and industrial portfolios.

According to the International Monetary Fund World Economic Outlook (October 2022), global economic activity is anticipated to slow down, largely affected by persistent inflationary pressures and subsequent measures aimed at combatting inflation. In its December 2022 economic outlook, the Bank of Namibia revised its real GDP to 3.9% from the 3.2% published in August 2022. The positive revision was attributed to the mining sector. Going forward, however, the Bank of Namibia expects growth to slow down to 2.7% and 2.4% in 2023 and 2024 respectively. 

We remain concerned about the broader macroeconomic conditions expected for the six months

ahead, including the outlook on interest rates. Against this backdrop, Oryx continues to perform well throughout all portfolios with the Board’s approval of the 2025 strategy, where the aim is to grow the total asset base significantly, Oryx is in the process of acquiring Dunes Mall in Walvis Bay, Namibia. 

Whilst regulatory approval has been obtained, the acquisition is subject to a capital raise. The acquisition of Dunes Mall would materially increase the property portfolio and diversify the Group from the concentration risk in Maerua Mall.

As we celebrate 20 years in business, we take the opportunity to thank our board, management team, employees and service providers for their ongoing commitment and dedication. We also thank our tenants, financiers and unitholders for their continued support.


*Ben Jooste is the CEO of Oryx Properties Limited.

2023-03-15  Correspondent

Share on social media