Oryx Properties : Announcement June 2024 |

UNAUDITED INTERIM RESULTS AND DISTRIBUTION ANNOUNCEMENT

for the six months ended 31 December 2023

Net	N$2.5	Gearing	37.3%	Vacancy factor ^	5.4%
Asset	billion		(2022: 36.5%)	(excl. residential)	(2022: 6.1%)
Value
	(2022: N$2.0 billion)

Profit for the period

N$66.9 million

(2022: N$33.8 million)

Distribution -	51.50
cents per linked
unit (cpu)	(2022: 54.25)

^ Including lease agreements signed prior to 31 December 2023 with the date of occupation taking place after 31 December 2023.

Condensed Consolidated Statement of Comprehensive Income (N$'000)

1. Other information

		Notes
	Revenue
	Rental - operating income	3.1
	Rental - straight-line adjustment
Property expense
Net rental income
Investment income
Share of profit from associate after tax	3.2
Amortisation of debenture premium
Other income	3.1
Changes in fair value of investment property
	As per valuations	2.6
	Straight-line adjustment
Changes in fair value of derivative instruments	2.8
Changes in fair value of listed investments
Exchange differences on foreign loan	3.2
Other expenses	3.1
Operating profit before finance costs and debenture interest
Less: Finance costs
Operating profit before debenture interest
Less: Debenture interest
Profit before taxation
Taxation
Profit for the period	2.2
Other comprehensive income - exchange diffference on associate	3.2
Total comprehensive income for the period

Six months ended	Year ended
31.12.2023	31.12.2022	30.06.2023
Unaudited	Unaudited	Audited
225,001	168,085	356,330
224,365	174,993	356,907
636	(6,908)	(577)
(70,743)	(58,681)	(120,898)
154,258	109,404	235,432
1,286	144	214
28,712	24,185	53,464
6,630	4,150	8,300
32,996	-	-
6,386	6,908	100,322
7,022	-	99,745
(636)	6,908	577
(10,318)	1,365	1,519
(748)	(652)	(652)
(590)	(5,288)	(14,118)
(23,731)	(10,236)	(26,755)
194,881	129,980	357,726
(73,017)	(50,107)	(102,703)
121,864	79,873	255,023
(58,569)	(47,239)	(91,966)
63,295	32,634	163,057
3,618	1,196	(4,546)
66,913	33,830	158,511
4,210	24,236	32,412
71,123	58,066	190,923

			Six months ended	Year ended
			31.12.2023	31.12.2022	30.06.2023
	Notes		Unaudited	Unaudited	Audited
Linked units in issue		114,325,868	87,378,835	87,378,835
Net asset value (NAV) on non-IFRS basis (cpu)	3.2	2,157	2,263	2,395
Realisable NAV (before distributions payable)		2,209	2,318	2,462
Listed market price (cpu)		1,200	1,030	1,100
Discount to NAV (%)		(44.36)	(54.49)	(54.07)
Commercial vacancy factor (based on lettable area)		5.4%	6.1%	6.8%
Residential vacancy factor (average)		0.7%	1.7%	1.4%
Capital commitments (incl. approved but not contracted)*			N$335m	N$731m	N$73m
Earnings per linked unit (cents)	2.2	110.32	93.14	287.82
Distribution per linked unit (cents) as declared	2.3	51.50	54.25	105.25

• Capital commitments include the first phase of the Maerua Mall Retail refurbishment project amounting to N$47.5 million, the PwC development project amounting to N$4.8 million, the Checkers Maerua Mall project amounting to N$25 million, and the Goreangab development amounting to N$258 million.

2. Notes to the financial results

2.1 Basis of preparation

The Group prepares its condensed consolidated financial statements in accordance with the recognition and measurement criteria of

the International Financial Reporting Standards (IFRS) and the Companies Act of Namibia, 28 of 2004. The principal accounting policies

and methods of computation are consistent in all material aspects with those applied as at 30 June 2023. The estimates and judgements

made in applying the accounting policies are consistent with those applied and disclosed in the Annual Financial Statements for the

year ended 30 June 2023. These unaudited condensed consolidated financial statements have been prepared in accordance with the

International Accounting Standard (IAS) 34 Interim Financial Reporting.

The condensed consolidated financial statements do not include the information required pursuant to paragraph 16A(i) of IAS 34,

although the information they contain does conform with the NSX listing requirements. There were no revised or new standards

Condensed Consolidated Statement of Financial Position (N$'000)

	Six months ended	Year ended
	31.12.2023	31.12.2022	30.06.2023
Notes	Unaudited	Unaudited	Audited

ASSETS

Non-current assets

adopted in the current year that had an effect on the Group's reported earnings, financial position or reserves, or a material impact on

the accounting policies. The directors take full responsibility for the preparation of the condensed consolidated financial statements.

The contents of these condensed consolidated financial statements have not been audited or reviewed. Mrs Francis Heunis CA(NAM)

supervised the preparation of the condensed consolidated financial results.

2.2 Weighted earnings and headline earnings

The weighted average number of issued linked units for the six months ended 31 December 2023 increased to 113,747,002 (June 2023:

Investment properties
At valuation	2.6
Straight-line adjustment
Furniture and equipment
Investment in associate	3.2
Deferred expenditure
Rental receivable - straight-line adjustment
Derivative asset	2.8
Current assets
Trade and other receivables
Trade and other receivables
Rental receivable - straight-line adjustment
Dividend receivable
Deferred expenditure
Tax receivable
Derivative asset	2.8
Cash and cash equivalents

TOTAL ASSETS

EQUITY AND LIABILITIES

Capital and reserves

Non-current liabilities

3,682,751	2,892,914	3,019,424
3,777,751	2,962,211	3,095,052
(95,000)	(69,297)	(75,628)
1,308	883	625
378,964	330,635	359,046
7,183	6,330	6,912
88,491	66,303	70,107
5,379	13,709	7,424
4,164,076	3,310,774	3,463,538
39,047	28,526	31,128
32,539	25,532	25,607
6,508	2,994	5,521
-	-	4,260
3,377	3,078	3,337
25	2,461	2,478
4,482	3,726	10,166
15,933	14,433	17,033
62,864	52,224	68,402
4,226,940	3,362,998	3,531,940
1,544,009	1,339,762	1,472,619

87,025,304), mainly due to the rights issue that took place in July 2023. The weighted average number of issued linked units has been

adjusted for 608,140 (June 2023: 434,386) units held by the Oryx Long-Term Share Incentive Trust and is calculated as follows:

Six months endedSix months ended

	31.12.2023		31.12.2022
		Unaudited		Unaudited
		N$'000	cpu	N$'000	cpu
Profit for the period	66,913	58.83	33,830	38.87
Debenture interest		58,569	51.49	47,239	54.27
Earnings attributable to linked units	125,482	110.32	81,069	93.14
Adjustments for:
Amortisation of debenture premium	(6,630)	(5.83)	(4,150)	(4.77)
Capital surpluses (net of deferred taxation)*		(32,771)	(28.81)	(2,227)	(2.56)
Headline earnings attributable to linked units	86,081	75.68	74,692	85.81
Debenture interest		(58,569)	(51.49)	(47,239)	(54.27)
Headline earnings (Note 2.3)		27,512	24.19	27,453	31.54

• Headline earnings circular 01/2023 applied.

2.3 Distribution attributable to linked unitholders

The distribution per linked unit is based on the actual number of units in issue at the end of the respective distribution period and is calculated as follows:

Six months ended

Six months ended

Debentures			510,270	390,057	390,057
Debenture premium			411,558	247,760	230,133
Interest-bearing borrowings	2.7		1,419,065	963,248	781,263
Derivative liability	2.8		2,589	-	-
Deferred taxation			58,251	56,027	61,329
Lease liability			6,871	-	6,943
			2,408,604	1,657,092	1,469,725
Current liabilities			62,760
Trade and other payables			46,338	67,319
Deferred income			1,197	1,381	1,486
Interest-bearing borrowings	2.7		150,011	270,759	461,273
Linked unitholders for distribution	2.3		59,561	47,666	58,789
Lease liability			798	-	729
			274,327	366,144	589,596
TOTAL EQUITY AND LIABILITIES
		4,226,940	3,362,998	3,531,940

		31.12.2023			31.12.2022
		Unaudited			Unaudited
		N$'000	cpu		N$'000	cpu
Headline earnings (Note 2.2)	27,512	24.19	27,453	31.54
Adjusted for:		58,569	51.23	47,239	54.06
Debenture interest
Distributable earnings	86,081	75.42	74,692	85.60
Adjusted for:
Dividends received from investment in associate	13,003	11.37	7,896	9.04
Share of profit from associate after tax	(28,712)	(25.11)	(24,185)	(27.68)
Capital surpluses not included in headline earnings		8,354	7.31	5,012	5.74
Adjusted distributable income	78,726	68.99	63,415	72.70
First half distribution	(58,878)	(51.50)	(47,403)	(54.25)
Undistributed income for the period and
distributable reserves	19,848	17.49	16,012	18.45

Condensed Consolidated Statement of Cash Flows (N$'000)

2.4 Primary business segments for the period ended 31 December 2023 (Unaudited N$'000)

Notes

OPERATING ACTIVITIES

Net cash from operating activities

Cash generated by operations

Investment income

Finance costs

Distribution paid to linked unitholders

Taxation received/(paid)

Net cash from investing activities

Additions/acquisitions

Dividends received from associate3.2 Purchase of notarial agreement of lease

Net cash from financing activities

Proceeds from the issue of linked units

Additional facilities drawn

Repayment of loans

Repurchase of linked units

Payment of principal portion of lease liabilities

Net movement in cash and cash equivalents

Cash and cash equivalents at beginning of the period

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD

	Six months ended	Year ended
	31.12.2023	31.12.2022	30.06.2023
	Unaudited	Unaudited	Audited
(2,161)	7,387	31,103
	130,441	107,798	235,551
	1,286	144	214
	(77,908)	(49,752)	(106,324)
	(57,797)	(50,209)	(97,287)
	1,817	(594)	(1,051)
	(632,674)	(41,036)	(61,721)
	(649,937)	(52,886)	(72,358)
	17,263	11,850	16,637
	-	-	(6,000)
	633,735	29,955	29,524
	309,804	-	-
	508,174	336,269	262,560
	(182,223)	(304,007)	(230,600)
	(2,017)	(2,307)	(2,307)
	(3)	-	(129)
	(1,100)	(3,694)	(1,094)
17,033	18,127	18,127
	15,933	14,433	17,033

			Retail	Industrial	Office	Residential	Fund	Group
	Rental - operating income	155,743	42,939	19,710	5,973	-	224,365
Rental - straight-line adjustment	1,074	(101)	(336)	(1)	-	636
Revenue		156,817	42,838	19,374	5,972	-	225,001
Profit/(loss) for the period	100,272	34,388	14,953	3,821	(86,521)	66,913
Properties as per valuations	2,620,007	702,665	319,709	135,370	-	3,777,751
Sectoral spread	69%	19%	8%	4%	-	100%
Total assets	2,650,203	707,084	319,064	136,353	414,236	4,226,940
Total liabilities	(29,916)	(12,424)	(5,402)	(6,190)	(2,628,999)	(2,682,931)

Comparative primary business segments for the period ended 31 December 2022 (Unaudited N$'000)

		Retail	Industrial	Office	Residential	Fund	Group
Rental - operating income	111,821	38,973	18,604	5,595	-	174,993
Rental - straight-line adjustment		(6,443)	(1,367)	896	6	-	(6,908)
Revenue	105,378	37,606	19,500	5,601	-	168,085
Profit/(loss) for the period	77,084	33,837	13,195	(1,176)	(89,110)	33,830
Properties as per valuations	1,864,638	651,556	314,913	131,104	-	2,962,211
Sectoral spread	63%	22%	11%	4%	-	100%
Total assets	1,892,411	657,349	312,858	132,229	368,151	3,362,998
Total liabilities		(48,364)	(14,542)	(6,338)	(6,449)	(1,947,543)	(2,023,236)

Condensed Consolidated Statement of Changes in Equity (N$'000)

	Share capital	Distributable	Non-distributable	Total	(Incorporated in the Republic of Namibia)	SPONSOR
Audited balance at 30 June 2022	reserves	reserves	(Registration number 2001/673)
871	97,711	1,183,116	1,281,698
("Oryx" or "the Group")
Net profit attributable to linked unitholders	-	33,830	-	33,830
(NSX Share code: ORY) (ISIN code: NA0001574913)
Other comprehensive income	-	24,236	-	24,236
Transfer to non-distributable reserves	-	(25,601)	25,601	-	www.oryxprop.com	Member of the Namibian Stock Exchange
Share buyback	(2)	-	-	(2)
	4th Floor, 1@Steps, Corner of Grove and Chasie Streets,
Unaudited balance at 31 December 2022	869	130,176	1,208,717	1,339,762	REGISTERED OFFICE
Kleine Kuppe, Windhoek
Net profit attributable to linked unitholders	-	124,681	-	124,681	Maerua Mall Office Tower, 2nd Floor
PO Box 186, Windhoek, Namibia
Other comprehensive income	-	8,176	-	8,176	Corner of Jan Jonker and Robert Mugabe Avenue,
Transfer to non-distributable reserves	-	(134,617)	134,617	-	Windhoek	DIRECTORS
Audited balance at 30 June 2023	869	128,416	1,343,334	1,472,619	PO Box 97723, Maerua Park, Windhoek, Namibia
VJ Mungunda (Chairperson)#$, A Angula (Deputy
Net profit attributable to linked unitholders	-	66,913	-	66,913	COMPANY SECRETARY	Chairperson)#$, JJ Comalie#$, B Jooste ^, RMM Gomachas$,
Other comprehensive income	-	4,210	-	4,210	MH Muller*#$, FK Heunis^, S Hugo#$, M Langheld*#$,
Transfer to non-distributable reserves	-	(57,987)	57,987	-	Bonsai Secretarial Compliance Services	TK Nkandi#$
Issue of linked units	269	-	-	269	TRANSFER SECRETARIES	(*South African, #Independent, ^Executive, $Non-executive)
Share buyback	(2)	-	-	(2)
Unaudited balance at 31 December 2023	1,136	141,552	1,401,321	1,544,009	Transfer Secretaries (Proprietary) Limited
4 Robert Mugabe Avenue, Windhoek

#18046	PO Box 2401, Windhoek, Namibia

2. Notes to the financial results (continued)

2.5 Secondary business segments (Unaudited N$'000)

			Six months ended			Six months ended
			31.12.2023			31.12.2022
			Non-			Non-
		Namibian	Namibian	Group	Namibian	Namibian	Group
Rental - operating income	218,544	5,821	224,365	169,530	5,463	174,993
Rental - straight-line adjustment		1,063	(427)	636	(6,708)	(200)	(6,908)
Revenue	219,607	5,394	225,001	162,822	5,263	168,085
Share of profit from associate after tax		-	28,712	28,712	-	24,185	24,185
Profit for the period	32,986	33,927	66,913	11,034	22,796	33,830
Properties as per valuations	3,731,351	46,400	3,777,751	2,901,711	60,500	2,962,211
Sectoral spread	99%	1%	100%	98%	2%	100%
Total assets	3,800,689	426,251	4,226,940	2,968,977	394,021	3,362,998
Total liabilities	(2,552,660)	(130,271)	(2,682,931)	(1,925,074)	(98,162)	(2,023,236)

1. Property portfolio
   The directors valued the portfolio at N$3.78 billion (June 2023: N$3.10 billion) at period end. The 22% growth in the portfolio is mainly due to the acquisition of Dunes Mall (Pty) Ltd on 1 August 2023, amounting to N$628.25 million. Additionally, capital expenditure amounting to N$20 million was incurred during the period (Dec 2022: N$53 million), which consisted of N$5.1 million incurred on the Maerua Mall development, with the capital expenditure in the Retail and Office segments amounting to N$12.5 million and N$2.2 million respectively. A fair value adjustment amounting to N$7 million was recorded during the period under review, relating to the Dunes Mall property.
   The property portfolio is classified as a level 3 asset. Level 3 fair value measurements are those derived from valuation techniques that include inputs for assets or liabilities that are not based on observable market data. Discount rates, capitalisation rates and reversion rates are key inputs into the models.
2. Interest-bearingborrowings

		31.12.2023		30.06.2023
		Unaudited		Audited
		Weighted average	Weighted average
		Utilised facility	interest rate	Utilised facility	interest rate
Expiry		N$'000	%	N$'000	%
Non-current liabilities
2025	269	10.4	292,763	10.5
2026	562,191	10.6	488,500	10.7
2027	356,605	8.9	-	-
2028		500,000	9.8	-	-
Total	1,419,065	9.9	781,263	10.6
Current liabilities
Maturing within one year		150,011	10.4	461,273	9.5
Total		150,011	10.4	461,273	9.5
GRAND TOTAL	1,569,076	9.9	1,242,536	10.2

Total available unutilised facilities, excluding the Domestic Medium-Term Note Programme (DMTNP) of N$252 million (June 2023:

N$252 million), Maerua development loan and cash balances, amounted to N$419 million (June 2023: N$409 million) at period end. The

unutilised foreign facilities amounted to €3.4 million (June 2023: €3.0 million) at period end.

2.8 Derivative asset/(liability)

	Total fair	Non-current	Current	Nominal	Average
	value	fair value	fair value	value	fixed
	N$'000	N$'000	N$'000	N$'000	interest rate %*
31.12.2022 Unaudited	7,272	2,790	4,482	810,000	6.7%
Asset	9,576	5,379	4,482
Liability	(2,304)	(2,589)	-
30.06.2023 Audited	17,590	7,424	10,166	610,000	5.9%

* Floating rate is the three-month Johannesburg Interbank Average Rate.

The interest rate swaps are classified as level 2 financial instruments which are derived from inputs, other than quoted prices (unadjusted) in active markets for identical assets and liabilities that are observable for the asset and liability, either directly or indirectly. The valuation technique used is the discounted cash flow model, with the discount rates being a key input.

3. Directors' commentary

1. Financial results and distribution
   For the period ending 31 December 2023, the Group has maintained its positive momentum in financial and operational performance, resulting in the normalised rental operating income (excluding Dunes Mall) increasing by 7% (June 2023: 6%) to N$187 million (Dec 2022: N$175 million), while reducing commercial vacancies to 5.4% (Dec 2022: 6.1%) and tenant collections averaging 100% (Dec 2022: 104%). Oryx's prudent financial and cash flow management strategies continue to position it well, notwithstanding the challenging environment of prolonged higher interest rates.
   Dunes Mall's tenant collection averaged 102% year-to-date with vacancies reducing to 5.8% (Dec 2022: 7.8%) at period end. During the period under review, a contractual purchase price adjustment (PPA) of N$7.02 million was paid to the previous owners for filling vacancies within the property.
   Other income amounting to N$33 million (Dec 2022: N$nil) was recorded during the period, which relates to a capital gain realised on the settlement of a headlease agreement.
2. Investment in associate
   The investment in associate cash yield was 9.3% (Dec 2022: 6.4%) for the period, of which Oryx's 26% share amounts to N$13 million
   (Dec 2022: N$8 million). The increase in the dividend yield follows the introduction of higher interest charges on the shareholder loans. A positive fair value adjustment was recognised during the period when the Croatian portfolio was revalued to €91.3 million (Dec 2022: €85.6 million). The translation of the loan from Euro to Namibian Dollar resulted in a foreign exchange loss of N$590 thousand (Dec 2022: N$5.3 million). The translation of the associate in turn resulted in a foreign exchange gain of N$4.2 million (Dec 2022: N$24 million), using a spot rate of N$20.50 as at 31 December 2023 (Dec 2022: N$18.16).
3. Interest-bearingborrowings
   The weighted average interest rate at period end was 9.9% (Dec 2022: 9.1%), which excludes any interest rate hedges. The increase in the weighted average interest rate is significantly attributed to the 100bps increase in the repo rate from December 2022 (6.75%) to December 2023 (7.75%). 52% (June 2023: 49%) of total debt drawn was fixed at period end, which increased slightly after entering into a N$250 million nominal value hedge fixed at 8.118% over 3-month JIBAR with a tenure of three years. The hedge was partially offset by the maturity of a N$50 million hedge.
4. Contingencies
   A purchase price adjustment was agreed on the acquisition of the Dunes Mall (Pty) Ltd on condition that the seller fills certain vacant gross lettable areas of the Dunes Mall asset. The maximum purchase price adjustment and therefore contingent liability recorded amounts to N$15.19 million.
5. The market and prospects
   In its December 2023 Economic Outlook Update, the Bank of Namibia projected a deceleration in Namibian GDP growth for 2023 and 2024. This slowdown is primarily attributed to weakened global demand and an anticipated contraction in the agriculture sector. The estimate suggests a decline in real GDP growth to 3.9% in 2023, further easing to 3.4% in 2024, which represents a significant reduction in the robust 7.6% growth observed in 2022. The anticipated slowdown in 2023 is largely attributed to a diminished demand in both global and domestic economies, influenced by elevated inflation and high interest rates, which adversely impact consumer spending.
   Despite the challenging micro- and macroeconomic conditions, the Group maintains its optimism regarding Namibia's future and is unwaveringly advancing toward fulfilling its strategy to expand the property portfolio. The Group believes that this will lead to an increase in shareholder value over the medium to long term. Following the successful capital raise in July 2023 and the completion of the Dunes Mall acquisition, the Group's total asset base increased to N$3.78 billion. Rental demand within the portfolio has seen vacancies improve, showing that prospective tenants are similarly positive about the economy and thus prioritising leasing decisions.
6. Changes to the Board
   Mr S Hugo, Mr M Langheld and Ms TK Nkandi were appointed to the Board of Directors on 28 November 2023. The Board welcomes the three new directors to the Group and looks forward to their future contributions.
7. Subsequent events
   The directors are not aware of any other material subsequent events after the reporting period.
8. Appreciation
   My appreciation goes to my fellow Board members for their continued support, to the executive management team and to every employee for their commitment and dedication to Oryx and its 2025 corporate strategy.
   I also want to extend my appreciation to our unitholders and other stakeholders for their continued support which contributes to Oryx's success.

4. Declaration of distribution number 41

Notice is hereby given of the declaration of distribution number 41, amounting to interest of 51.50 cpu, in respect of the six-month period ended 31 December 2023.

Last date to trade cum distribution Wednesday, 20 March 2024 Units will trade ex-distribution Friday, 22 March 2024

Record date to participate in the distribution Thursday, 28 March 2024 Payment of debenture interest Friday, 12 April 2024

By order of the Board

B Jooste - Chief Executive Officer

6 March 2024

#18046