RDC sheds P216m worth of properties to prop up balance sheet
Lewanika Timothy | Monday March 30, 2026 06:00
The property group, which owns assets such as Chobe Marina Lodge and Masa Square Centre in Gaborone, to name a few, said the disposals, concluded at an eight percent premium to book value, form part of a deliberate shift to improve portfolio quality while recycling capital into stronger-performing assets.
Most of the assets dumped were mainly in South Africa, such as the Sparrow Shopping Centre, which was sold for R60 million and the Regent Building in Cape Town, which sold for R150 million, with the company's executives eyeing no major disposals for the Botswana market.
The asset sales come as RDC reported a sharp 53% jump in profit to P236.8 million for the year ended December 2025, although earnings were partly lifted by property revaluation gains. This was revealed during the presentations of the company's financials this week.
“Profit from operations increased by 16%, supported by the improved performance of the underlying property portfolio together with positive revaluation movements of P134.8 million,” the group said.
The company’s revenue rose five percent to P600 million, driven by improved occupancy levels and steady rental growth across its markets, whilst net property income increased eight percent to over P386 million.
Whilst the company posted strong book growth, the company executives expressed worry over the slowdown in the hospitality industry in Botswana, alongside broader macroeconomic challenges that threatened to hamper growth.
The company's Group Executive Chair, Guido Giachetti, said that Botswana was undergoing macroeconomic challenges that made it harder to raise capital, alongside broader challenges in a slowdown being seen in the hospitality industry.
“Botswana, which holds close to 30% of our portfolio, is experiencing challenges macroeconomically, which shows itself in the slowdown in the bond market alongside hospitality industry underperformance,” he said in a virtual presentation of the group's results this week.
Vacancy levels declined to 5.3 percent from seven percent in the prior year, signalling stronger tenant demand and improved income visibility across the portfolio.
At the same time, RDC moved to strengthen its balance sheet, using proceeds from disposals alongside operational cash flows to reduce debt.
“This strategy has resulted in the loan-to-value ratio reducing to 37.6%, providing increased financial flexibility and reducing exposure to interest rate volatility,” the group said.
Regionally, the group's management said performance was improving. South African assets, particularly in the Western Cape and Johannesburg, recorded positive rental reversions, whilst Botswana operations remained anchored by long-term government leases and stable tenant demand.
“In Botswana, the portfolio continued to benefit from strong tenant relationships and long-term government occupancy,” the group said.