Africa-Press – Namibia. LISTED property company Oryx Properties has posted a solid recovery for its 2022 financial year, with better profit, cash balance and low vacancy ratios.
LISTED property company Oryx Properties has posted a solid recovery for its 2022 financial year, with better profit, cash balance and low vacancy ratios.
Reviewed financial statements show the company, which was impacted by Covid-19 and its accompanying trading restrictions, has recovered – pushing profit up by over N$90 million.
In 2021, the company reported a profit of just N$10 million, with its bottom line stripped by changes in the fair value of property.
For the 2022 financial year, the company reported positive fair value valuations on their property investments.
This led to the company, which operates in the retail, residential, industrial and office segments, to net an operating profit of N$305 million, compared to N$186 million reported for the 2021 financial year.
Profit after tax also came in strong at N$105 million, compared to just N$10 million recorded for the 2021 financial year.
The financial year ending in June also saw the company moderating its balance sheet to N$3,1 billion – with investment properties still taking a bigger share of assets, and matched against a smaller drop in the long-term liability balance for the year at N$1,6 billion, compared to N$1,8 billion in 2018.
Equity edged up to N$1,2 billion and shareholders will receive a distribution of 57,75 cents per unit.
The company has over 87 million linked units in issue.
According to the company directors’ commentary, the Namibian economy is estimated to have recovered moderately during the 2021 calendar year and is projected to improve during 2022 and 2023.
This is supported by growth in mining and most tertiary industries.
Namibia’s domestic growth remains constrained by the after-effects of the Covid-19 pandemic and high energy prices, coupled with supply disruptions globally.
“The rise in inflation and interest rates is expected to have an impact on our business. Initiatives such as the hedges taken out during the 2021 financial year mitigate our exposure to this risk,” the company said.
Its board has also approved the group’s strategy for the next three years until 2025, with the aim to grow its total asset base to N$4,5 billion.
“Management is 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, repositioning the portfolio to exit high-risk sectors and reducing the concentration risk of Maerua Mall,” the commentary reads.
The vacancy ratio for the 2022 financial year for both commercial and residential spaces, respectively, came in low at 5,4% and 1,9%, as opposed to 5,9% and 11,2% in 2021.
The company also recovered its cash balance, now at N$18 million compared to just N$7 million at last year’s financial year-end.
This was probably improved by stricter debt-collection methods and the decision to reduce the distribution to unit holders to 75%, improving liquidity and gearing levels.
The company said its board continued to focus on scrutinising budgets and scenarios prepared during the year under review.
“Stress-test scenarios were prepared to address market conditions which may impact financiers’ risk appetite and limit access to liquidity. Additionally, stress-test scenarios included covenant measurements for covenants that are at higher risks of breach,” the commentary reads.
Subsequent to year-end, the company also refinanced the N$85 million Standard Bank facility, which expired in August 2022 at the three-month Johannesburg Interbank Average Rate, plus 2% for a two-year tenure.
Oryx shares started off the week trading at N$10,26.
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Reviewed financial statements show the company, which was impacted by Covid-19 and its accompanying trading restrictions, has recovered – pushing profit up by over N$90 million.
In 2021, the company reported a profit of just N$10 million, with its bottom line stripped by changes in the fair value of property.
For the 2022 financial year, the company reported positive fair value valuations on their property investments.
This led to the company, which operates in the retail, residential, industrial and office segments, to net an operating profit of N$305 million, compared to N$186 million reported for the 2021 financial year.
Profit after tax also came in strong at N$105 million, compared to just N$10 million recorded for the 2021 financial year.
The financial year ending in June also saw the company moderating its balance sheet to N$3,1 billion – with investment properties still taking a bigger share of assets, and matched against a smaller drop in the long-term liability balance for the year at N$1,6 billion, compared to N$1,8 billion in 2018.
Equity edged up to N$1,2 billion and shareholders will receive a distribution of 57,75 cents per unit.
The company has over 87 million linked units in issue.
According to the company directors’ commentary, the Namibian economy is estimated to have recovered moderately during the 2021 calendar year and is projected to improve during 2022 and 2023.
This is supported by growth in mining and most tertiary industries.
Namibia’s domestic growth remains constrained by the after-effects of the Covid-19 pandemic and high energy prices, coupled with supply disruptions globally.
“The rise in inflation and interest rates is expected to have an impact on our business. Initiatives such as the hedges taken out during the 2021 financial year mitigate our exposure to this risk,” the company said.
Its board has also approved the group’s strategy for the next three years until 2025, with the aim to grow its total asset base to N$4,5 billion.
“Management is 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, repositioning the portfolio to exit high-risk sectors and reducing the concentration risk of Maerua Mall,” the commentary reads.
The vacancy ratio for the 2022 financial year for both commercial and residential spaces, respectively, came in low at 5,4% and 1,9%, as opposed to 5,9% and 11,2% in 2021.
The company also recovered its cash balance, now at N$18 million compared to just N$7 million at last year’s financial year-end.
This was probably improved by stricter debt-collection methods and the decision to reduce the distribution to unit holders to 75%, improving liquidity and gearing levels.
The company said its board continued to focus on scrutinising budgets and scenarios prepared during the year under review.
“Stress-test scenarios were prepared to address market conditions which may impact financiers’ risk appetite and limit access to liquidity. Additionally, stress-test scenarios included covenant measurements for covenants that are at higher risks of breach,” the commentary reads.
Subsequent to year-end, the company also refinanced the N$85 million Standard Bank facility, which expired in August 2022 at the three-month Johannesburg Interbank Average Rate, plus 2% for a two-year tenure.
Oryx shares started off the week trading at N$10,26.
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