Oryx Properties says the economic landscape remain challenging despite its profit for the financial year ended 30 June 2018 increasing slightly to N$37 million from N$31 million the previous year.
Revenue increased N$304 million from N$297 million in prior year.
“The current economic landscape remains challenging, but is expected to recover from the contraction in 2017 to a growth forecast of 0.6 percent and 1.9 percent in 2018 and 2019, respectively,” it said.
Oryx said the positive sentiment created by a recovery in the exchange rates and a more positive GDP growth outlook earlier in the year, has been reversed to a large extent with the exchange rates weakening significantly and the Namibia Statistics Agency reporting a first quarter retraction of -0.1 percent for 2018.
“There is, however, renewed optimism in the economy as cost of debt stabilised and liquidity improved. We are optimistic about the growth projections for our 2019 financial year, especially as our envisaged offshore investment come to fruition.”
During the financial year, Oryx completed the Maerua Mall upgrade, the opening of 'The Pantry at Avani' and positive rental reversions and extensions in the industrial portfolio.
Capital expenditure incurred amounted to N$174 miilion, which includes N$44 million for the Gustav Voigts centre and N$26m on additional solar panels installed at Maerua Mall.
The additions further include the Elisenheim land at a fair value of N$40 million, for the construction of a convenience centre, the first phase of which will be completed during the 2020 financial year.
Oryx has a diverse portfolio in Namibia and South Africa worth a total of N$2.32 billion. It is listed on the Namibian Stock Exchange in the Financial Real Estate sector.
Oryx Properties has 287 tenants in 25 properties in premium-quality retail, industrial and office real estate.
In the retail sector, the company owns Maerua Mall, Gustav Voigts shopping centre and Baines shopping centre, all in Windhoek.
The industrial sector comprises various acquisitions in South Africa and Namibia. Prime office real estate in Windhoek makes up the balance of the portfolio.