Oryx year end results
Oryx Properties Limited, a NSX-listed property investment company, declared a distribution of 66.25 cents per linked unit for the six months to 30 June 2012. This is an 8.6% improvement over the 61.00 cents per unit declared for the comparative period. The total distribution to unit holders for the year amounts to 128.00 cents per unit, an 8.9% increase over the 2011 financial year.
According to CEO Stefan de Bruin the increase in distributions stems from a 16.1% growth in net rental income mainly due to new developments and acquisitions during the year, strong renewals and the reduction of vacancies to 0.6% at 30 June 2012 (2011: 2.6%). The overall cost ratio improved from 19.0% to 17.4% despite increases in cost of electricity and municipal service charges.
The core portfolio was independently valued at N$1.27 billion at 30 June 2012, which represents a 6.5% increase in value over the June 2011 valuation. The portfolio enjoyed excellent occupancy levels during the year. The low vacancies are the result of Oryx’s focus on tenant requirements. Furthermore we achieved positive lease renewals and were able to conclude leases with new tenants in line with our budgets.
During April and June 2012, Oryx took transfer of two additional industrial properties in South Africa at a total acquisition cost of N$118.2m. The total gross lettable area of these properties is 14 173m² and is expected to produce an average initial income yield of 9.4%.
Construction of a N$28 million truck facility measuring 2800m² on vacant land in Lafrenz is well advanced and completion is expected at the end of October 2012.
The Maerua Mall extension and upgrade project commenced on 12 May 2012. Retail space of 8300m², office space of 3050m² and 925 new parking bays will be added to the centre. The project comprises five zones which are expected to be completed by 31 October 2013 at a total cost of N$307m. At completion of the project, the entire Maerua Mall node will measure 60500m². According to CFO Carel Fourie the project will be funded by a development loan, negotiated at favourable terms, which will be converted to a term loan after completion of the project.
Oryx has produced robust full year results with a total return of 29.7% (capital and income) to its unit-holders. The focus remains on strategic acquisitions, development of existing properties and tenant retention.