Diversified portfolio helps RDC Properties survive shocks

Directors at RDC Properties have credited the group’s well diversified portfolio, in terms of sector and location, for enabling the Botswana Stock Exchange-listed real estate outfit to perform well in the challenging macro-economic environment.  PIC PHATSIMO KAPENG
Directors at RDC Properties have credited the group’s well diversified portfolio, in terms of sector and location, for enabling the Botswana Stock Exchange-listed real estate outfit to perform well in the challenging macro-economic environment. PIC PHATSIMO KAPENG

Directors at RDC Properties have credited the group’s well diversified portfolio, in terms of sector and location, for enabling the Botswana Stock Exchange-listed real estate outfit to perform well in the challenging macro-economic environment.

According to the group’s 2023 annual report, during the reporting period, the group’s investment and property portfolio grew by 1.3 percent to P6 billion despite the sale of 138 million less strategic assets during the year. Revenue rose by seven percent to P561 million compared to P525 million that was recorded in the prior year. RDC said about 36% of its revenue was from Cape Town properties, 23% from Johannesburg, 20% from Botswana, 16% from Croatia and five percent from Durban. Group Executive Chair, Guido Giachetti, reported uplift in the portfolio net operating income as reflected in the increase in revenue by some seven percent on the prior year. The trend is set to continue into 2024 as the forecast property contribution strengthens, he added. “A major contributor to this has been the predicted rebound in the hospitality sector, with our hospitality assets showing significant growth in cash flow and rental contribution to the group,” he said.

“The conclusion of the acquisition of the David Livingstone Safari Lodge has further strengthened the ability of the group to leverage the sector improvement and its inhouse hospitality expertise to shareholder advantage.” In terms of development projects, the company directors revealed that redevelopment of the Westlake Shopping Centre in Cape Town was proceeding well. The relaunch of the Centre is scheduled for the third quarter of 2024 with new anchor tenants Checkers and Clicks. Giachetti added: “Post year end we have concluded a sale of shares agreement to dispose of our share of the newly completed Biotechnology Hub on Albert Road 108 – Woodstock, Cape Town.”

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