Oryx Properties happy over interim results

ORYX Properties Limited, a property investment company listed on the NSX, released its interim results for the six months ended 31 December 2003 on Friday and declared an interim distribution of 31 cents per unit, payable on 31 March 2004.

Bennie Joseph, a director of the company, said that the properties were well let and had performed according to expectations. Oryx awaits confirmation of the proposed tax amendment in the SA budget.This will determine whether interest received by Oryx on its JSE-listed property investments will be exempt from SA tax.An exemption would be good news for Oryx investors, said Joseph.Given the 31 cents distribution declared by the company, Oryx’s current unit price of 532 cents suggests a discount to net asset value of 9%, he added.The net asset value of the company had increased to 554 cents per unit, from 497 cents in June 2003, following the appreciation in value and part-realization of the company’s portfolio of JSE-listed property investments and the independent valuations of its properties as at 31 December 2003, Joseph said.The group balance sheet lists total assets at N$339 618 000, up from N$293 393 000 in June 2003.But the income statement shows that revenue fell from N$16 221 000 in June 2003 to N$14 390 000 by December.During the six month period, Oryx invested N$20 million in the further development and improvement of existing properties to meet tenant demand.The capital invested had generated favorable investment returns, said Joseph.He added that management was currently pursuing further investment opportunities, including possible extensions to Oryx’s flagship property, Maerua Mall.Details of these will be announced once negotiations are finalized.After the compilation of the interim results in February of this year, Ambit Properties bought 28,8 per cent of Oryx’s unit capital at 530 cents per unit.Oryx awaits confirmation of the proposed tax amendment in the SA budget. This will determine whether interest received by Oryx on its JSE-listed property investments will be exempt from SA tax. An exemption would be good news for Oryx investors, said Joseph. Given the 31 cents distribution declared by the company, Oryx’s current unit price of 532 cents suggests a discount to net asset value of 9%, he added. The net asset value of the company had increased to 554 cents per unit, from 497 cents in June 2003, following the appreciation in value and part-realization of the company’s portfolio of JSE-listed property investments and the independent valuations of its properties as at 31 December 2003, Joseph said.The group balance sheet lists total assets at N$339 618 000, up from N$293 393 000 in June 2003. But the income statement shows that revenue fell from N$16 221 000 in June 2003 to N$14 390 000 by December. During the six month period, Oryx invested N$20 million in the further development and improvement of existing properties to meet tenant demand. The capital invested had generated favorable investment returns, said Joseph. He added that management was currently pursuing further investment opportunities, including possible extensions to Oryx’s flagship property, Maerua Mall. Details of these will be announced once negotiations are finalized. After the compilation of the interim results in February of this year, Ambit Properties bought 28,8 per cent of Oryx’s unit capital at 530 cents per unit.