This year marks the conclusion of the Oryx Properties group’s three-year growth strategy, with the portfolio closing at N$4.7 billion.
Over this period, unit holders have enjoyed a cumulative total return of 57%, with the 2025 financial year delivering the highest annual return of 21%. The property portfolio has expanded by N$1.8 billion, underscoring the group’s successful growth trajectory.
Trading at a 41% discount to Net Asset Value (NAV), we see significant value for income-focused investors. Over the past three years, the group’s emphasis has been on growth, strategically building the portfolio to ensure sustained revenue growth from high-quality, strategically positioned assets.
With this foundation now in place, the focus shifts to delivering income returns, which should be a welcome message to patient investors.
We expect the payout to be raised up to a maximum of 90% during 2028, supporting considerable growth in debenture interest distributions, unless current shareholders vote to change this somewhere during the next two years.
Coupled with the current discount to NAV, we believe this presents an attractive entry point for investors, with potential for the spread to narrow as the stock begins trading closer to its intrinsic value.
We are upgrading our rating from Hold to Buy. At the current price of N$13.31 per share, our 12-month target price is N$14.34, reflecting a 7.6% upside and a forward yield of 9.04%, we forecast total returns of 16% to 17%.
Oryx reported a mixed set of results for the financial year ended 30 June 2025. At first glance, the total comprehensive loss of N$175.9 million may raise concern, but this figure is largely driven by legislative changes requiring the derecognition of deferred tax assets on the income statement.
Stripping out this adjustment, the operating picture is far more encouraging. Net rental income grew 10.36% YoY, reflecting healthy portfolio performance and strong tenant demand.
The property portfolio continues to expand, now valued at N$4.7 billion, surpassing its strategic target of N$4.5 billion by June 2025.
The group delivered a total return of 21%, with 12% capital growth and 9% income return, comfortably outperforming the 10-year government bond yield. When viewed through an operational lens, Oryx had a very positive year, meeting its growth objectives and delivering robust returns for investors.
Oryx continues to demonstrate consistent growth and operational excellence in Namibia’s property sector. On the rental income front, growth exceeded our expectations by 2.82%, reflecting the group’s ability to identify market opportunities and successfully capitalise on them coming in at N$492.2 million for the 2025 financial year end. Property expenses increased, but well within line with portfolio expansion and remains below 32% of gross rental levels.
The long-awaited Phase 1 expansion of Maerua Mall is now complete. Although later than originally planned, it is expected to contribute meaningfully to the rental income line going forward. The recent acquisition of Platz am Meer in Swakopmund, finalised on 30 June 2025, will provide an additional stable revenue stream and further strengthen the overall portfolio mix.
Looking ahead, the Goreangab Mall development, a first-of-its-kind project in the Katutura area is scheduled for completion in May 2026, with meaningful contributions to the income statement anticipated from H1 2026 financial year.
Operational performance remains robust. Commercial vacancy tightened to 2.4% from 4.2%, while rental reversions stand firm at 7%, up considerably from 0.3%. Capital expenditure for the year totalled N$146 million, comprising N$52 million for Maerua Mall Phase 1 redevelopment, N$57 million for Goreangab Mall (under construction), and N$37 million on “maintenance” capex.
The Platz am Meer acquisition was completed at N$290 million, with a guided net operating income yield of 11%, about N$31.9 million. –Simonis Storm Securities
