Orion Real Estate Limited. JSE: ORE

Orion Real Estate shares

Background of Orion

  • Orion Real Estate is a property investment and development company with a 25 year long history in the South African property sector, investing in a portfolio of commercial, residential, retail, hospitality and industrial properties.

  • Originally formed with the purchase of Intec House in Johannesburg, the group has grown to buy numerous other assets with a total value of over R1 billion. Orion today manages both listed and private property portfolios, growing into a diversified fund with internal asset and property management teams. 77% of the group’s asset value is based in Gauteng, with 18% in Mpumalanga and other properties based in the Western Cape and KwaZulu-Natal. Commercial properties are valued at R340million and account for approximately 44% of revenue.

  • In 2006, Orion shares gained a listing on the Johannesburg Stock Exchange (JSE) when the company decided to buy Alpina Investments Limited. The company converted into a Real Estate Investment Trust (REIT) in 2015, with shares now for sale on the JSE Main Board.

  • Orion’s long-term goal is to own properties in 50 countries and have an annual compound growth rate of not less than 28%. The live online stocks chart shows that Orion share price has more than doubled since listing.

Orion Shares Growth Driver

  • As with the majority of listed property companies, Orion has been impacted by the difficult economic conditions in South Africa, but has largely managed to weather the storm.

  • Orion’s latest available financial data, covering the last six months of 2015, indicated a 13.5% decline in revenue to R45.4 million, primarily due to the sale of several buildings within the portfolio. Operating profit decreased by 31.9% to R10.2 million, but total comprehensive income improved by 20% to R5 million thanks to increased finance income.

  • These results followed impressive performance in the 2015 financial year, when the company grew profits by R70 million to R109 million. Basic earnings per share for the year were up by 175% to 17.52 cents, and dividends grew strongly. To reduce costs, the company focused on performing its own building maintenance and tenant installations through an associate company. Focus on green technologies has also resulted in reduced costs and made properties more attractive to clientele. The REIT conversion helped to stabilise the balance sheet through a combination of tax savings from the exemption of capital gains tax on future property sales, and stricter debt restructuring requirements.

  • Going forward, Orion aims to expand its portfolio in South Africa and increase its geographical footprint by identifying opportunities to buy properties in other areas of Africa.

Orion Group Investor Tip

  • Since listing as an REIT, Orion share price has almost doubled in price from 32 cents to 60 cents by September 2016. The net asset value of Orion shares stands at around R1, indicating that upside growth is possible for investors who buy the stocks. Still a small fish in the JSE listed property sector, Orion has some potentialfor growth and may start attracting the attention of investors.

Orion Major Shareholders

Franz Gmeiner Property Trust.

  • Sector

    Financials

  • Industry

    Real Estate

  • Sub industry

    Real Estate Owners & Developers

How to buy Orion Group Shares

  • Orion : How to buy Orion Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Orion Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Orion Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Orion Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Orion Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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