Oryx Portfolio Now Valued At N$2 Billion

ORYX Properties says in its latest financial results its property portfolio is now valued at N$2 billion, up from N$1,5 billion as at end June 2013.

Commenting on the results, IJG Securities said revenues were better than expected and also that vacancies were lower than expected and a lower than forecast cost of debt financing.

The company displayed another period of good operational performance, with net rental income increasing by 23,7% year to year to N$162.9 million in line with the IJG estimate of N$164 million supported once again by above average occupancy levels (reported at 99,1%), increased revenues from the additional (11 000 square metres) lettable area at Maerua Mall following the completion of its extension, and the recently acquired Gustav Voigts Centre.

Profits after tax jumped by 615%, mainly as a result of the N$74 million fair value adjustments of investment properties.

Rental expense increased by 44,9%, from N$28,9 million to N$41,9 million on account of the increase in retail area as well as electricity and other municipal charges escalating at inflation-plus levels.

Vacancies increased from 0,4% as at June 2013 to total 0,9% at financial year-end.

“The distribution reported translates in a 12 month distribution yield amounting to 8,22%, a decline when compared to the same period of 2013, and a premium to the comparable 10 year government bond. This trend makes the stock less attractive in an interest rate hiking cycle as bond yields are expected to expand further,” IJG said.

Source : The Namibian