Oryx loses N$23m to bad debtors
By Hilary Mare
OWNERS of Maerua Mall, Oryx properties have seen its provision for bad debts shoot up from N$8.6 million last year to N$23.2 million this year owing to Covid-19.
This was revealed in the company’s financial statements for the year ended June 30 released last week.
In the statements, the company notes that property income increased from the previous period by 2.8 percent which is despite the rent relief of N$18 million provided to tenants as a result of Covid-19 for the period April to June.
“Excluding the rent relief, rental growth would have been 8.2 percent which is attributable to the residential acquisition made during the year. The vacancy rate deteriorated to 5.4 percent (2019: 3.2 percent) for the portfolio with a 9.3 percent vacancy on the residential portfolio. The increase is aggravated by the current trading environment which continues to put pressure on tenants’ ability to remain profitable. Lease escalations have been flat or negative for parts of the retail and office sectors and compressed for the industrial sector. Focus for the financial year will continue to be placed on protecting our income streams, managing expenses and reducing our overall debtors’ levels,” the financial statements read in part.