NSX-LISTED Oryx Properties Limited has declared a distribution of 66,25 cents per linked unit for the six months ended June 2012.

This is an 8,6 per cent improvement over the 61 cents per unit declared for the comparative period last year. The total distribution to unit-holders for the year amounts to 128 cents per unit, an 8,9 per cent increase over the 2011 financial year.

Oryx Properties chief executive officer Stefan de Bruin said the increase in distributions stems from a 16,1 per cent growth in net rental income, mainly due to new developments and acquisitions during the year, strong renewals and the reduction of vacancies to 0,6 per cent at June 30. The overall cost ratio improved from 19 per cent to 17,4 per cent despite increases in cost of electricity and municipal service charges.

The core portfolio was independently valued at N$1,27 billion at the end of June, which represents a 6,5 per cent increase in value over the June 2011 valuation.

De Bruin said the portfolio enjoyed excellent occupancy levels during the year.

"The low vacancies are the result of Oryx's focus on tenant requirements. Furthermore we achieved positive lease renewals and were able to conclude leases with new tenants in line with our budgets," he said.

During April and June 2012, Oryx took transfer of two additional industrial properties in South Africa at a total acquisition cost of N$118,2 million. The total gross lettable area of these properties is 14 173 square metres and is expected to produce an average initial income yield of 9,4 per cent.

Construction of a N$28-million truck facility measuring 2 800 square metres on vacant land in Lafrenz is well advanced and completion is expected at the end of October, De Bruin said.

The Maerua Mall extension and upgrade project started in May. Retail space of 8 300 square metres, office space of 3 050 square metres and 925 new parking bays will be added to the centre. The project comprises five zones which are expected to be completed by October 31 next year at a total cost of N$307 million.

At completion of the project, the entire Maerua Mall node will measure 60 500 square metres. Oryx Properties chief financial officer Carel Fourie said the project will be funded by a development loan, negotiated at favourable terms, which will be converted to a term loan after completion of the project.