Orion Real Estate reports higher revenue

Orion Real Estate MD Franz Gmeiner said despite the number of challenges facing SA economy, Orion remained confident that enough opportunities were available to ensure success.

JSE-listed property group Orion Real Estate (ORE) this week reported full year revenue growth and said its diluted headline earnings per linked unit improved from 0.30c in 2013 to 0.62c in 2014.

The company‚ which reported its results for the year ended June on Tuesday‚ saw its gross property revenue grew by almost 11 percent to R96.7 million.

Increase in direct property operating costs, administrative and management expenses were contained to 4.6 percent at R76.3m.

Basic earnings per share increased from 4.86c per linked unit to 5.55c per linked unit‚ while the net asset value per share came in at 81.76c from 75.52c in the year-earlier period.

Orion Real Estate MD Franz Gmeiner said despite the number of challenges facing the economy, Orion remained confident that enough opportunities were available to ensure success.

The value of the property portfolio increased from R758.5m in 2013 to R783.2m in 2014‚ a growth rate of 3,3%.

During the year the group acquired a property in Lydenburg for R9.5m and disposed three, in City Deep, Laser Park, and Marlboro, for a profit of R1.5m.

The average vacancy factor of the portfolio improved to 12.4 percent from 15.4 percent.

“We will continue in the future to evaluate our property portfolio and purchase more property where we consider that it offers value and a good revenue stream‚” the company said.

“No dividends were paid or declared during the financial period‚” the company said.

With the acquisition of Alpina Investments Ltd, Orion gained a listing on the Johannesburg Security Exchange (JSE) in March 2006.