The Oryx Properties Board has approved Group’s strategy for the next three years until 2025, with the aim to grow the total asset base inorganically to N$4.5 billion, Ben Jooste, CEO of Oryx Properties has said.
Announcing the Group’s annual financial results published on 2 September 2022, Jooste said management was excited about the new strategy and sees a lot of opportunity within the current market.
“In the short to medium term, management is focused on growing the fund geographically across Namibia, reposition the portfolio to exit high risk sectors and reduce the concentration risk of Maerua Mall,” he said.
He went on to say that despite tough economic conditions which have been prevailing since 2018, Oryx was excited and confident about its results and its vision for the future.
“We see a lot of opportunity within the current market. We wish to thank our management team, employees and service providers for their commitment and dedication during the year and we extend our gratitude to our tenants, financiers, board, and unit holders for their continued support.”
Jooste also said that rental operating income declined by 1.4% from the previous year, which was mainly due to the impact that COVID-19 continued to have on the tenants operating in the retail and tourism industry, with negative rental reversions ending at 7.3% (2021: 9.14%) for the year. The core portfolio and residential vacancy factors improved to 5.4% (June 2021: 5.9%) and 1.9% (June 2021: 11.2%) respectively.
He added: “Performance in the latter part of the financial year went particularly well and better than anticipated, which was the result of proactive initiatives to reduce tenant debtor balances, including restructuring significant tenancy lease terms. COVID-19-related rent concessions were suspended during the year and our average debtor’s collection improved to 96% (2021: 89%). The outcome was a reduction of other expenses, which includes receivable impairments, to N$34 million (2021: N$61 million).”
The portfolio, including investment property held for sale, was independently valued at N$2.9 billion (2021: N$2.8 billion) by Mills Fitchet Magnus Penny with a positive fair value adjustment of N$47 million (2021: negative N$94 million).