The ratings counterbalance Oryx Properties Limited’s (“Oryx” or “the fund”) small and highly concentrated portfolio against its strong through-the-cycle earnings performance, as well as the recently adopted cash preservation initiatives, which are expected to shore up the fund’s financial profile through a period of considerable uncertainty. Despite the improvement achieved year-on-year, leverage remains a ratings constraint.
In December 2002, Oryx was listed as the first property loan stock (“PLS”) listed on the Namibian Stock Exchange (“NSX”) and remains the sole listing. Its shareholder base is almost entirely Namibian domiciled. Oryx’s investment strategy is to build a diversified portfolio of properties that can deliver long term income growth and asset price appreciation. As Namibia does not yet have Real Estate Investment Trust (“REIT”) legislation, Oryx remains a PLS. Oryx’s operating environment assessment is anchored by its exposure to the Namibian property space, albeit some cognisance is taken of the modest international contribution from an indirect investment in Croatia.