CHAMWE KAIRA
Oryx Properties Limited is of the opinion that the property market continues to show improvements supported by a projected expansion of the Namibian economy by 4% in 2025.
The company said in unaudited interim results for the six months ended 31 December 2024 that the positive economic trajectory is driven by urban development and infrastructure projects, which continue to increase demand for both residential and commercial properties.
“Our strategic investments in high-growth areas, growth momentum in line with our strategy and our commitment to sustainable building practices position us well to capitalise on these trends,” the company said.
Looking ahead, the firm anticipates robust growth opportunities in the property sector despite compressed yields given the expected interest rate reductions.
It said the ongoing economic recovery and increased investor confidence are expected to drive higher demand for property investments.
“By leveraging technology and enhancing tenant services, we aim to maintain our competitive advantages and deliver long-term value to our unitholders.”
The group delivered strong results in the first half of 2025 and said it remains well positioned to meet its 2025 corporate strategy. Positive rental reversions, a 63% improvement in commercial vacancies and an average tenant collection of 101% contributed to this strong performance.
Operating rental income increased above inflation by 6.1% (December 2023: 6.9%), while vacancies improved to 2% (December 2023: 5.4%).
In line with expectations, the interest cover ratio reduced marginally to 2.2 times (June 2024: 2.3 times) due to capital-intensive projects advanced during the period.
While these projects don’t immediately increase rental income, Oryx said they should improve long-term financial performance.
The group reported a once-off income of N$33 million under other income in the prior period, following the conclusion of a headlease settlement agreement.
Other expenses decreased by 31%, primarily due to a significantly lower purchase price adjustment recorded on the acquisition of Dunes Mall during the period, amounting to N$179,000 (December 2023: N$7.0 million).
A distribution of 52.50 cents per linked unit has been declared for December 2024 (December 2023: 51.50 cents per linked unit), which represents an increase of 2%. This distribution could have been higher at 53.25 cents per linked unit, if not for the income tax amendments enacted during the period.
