RDC Properties Limited has delivered a strong set of half-year results for the period ended June 30, 2025, demonstrating the resilience of its diversified portfolio and the effectiveness of its strategic initiatives. Despite macroeconomic challenges, the Group’s performance was supported by stronger operating results, selective asset disposals, and prudent financial management.
Financial Highlights
Several key financial indicators point to a period of significant growth for RDC Properties:
- Profit Before Tax: Profit before tax increased by 21% to P50 million, up from P41 million in the comparative half-year period. This growth was positively affected by easing interest rates in South Africa and Croatia, which reduced finance costs.
- Earnings Per Linked Unit: Earnings per linked unit rose by 31% to 4.65 thebe, compared to 3.56 thebe in the half-year ended June 30, 2024.
- Total Comprehensive Income: Total comprehensive income saw a remarkable increase of 129% on the comparative period.
- Interim Distribution: The interim distribution declared increased by 91% to P42 million from P22 million in the previous half-year. This aligns with the Group’s strategy of growing distributions.
- Net Asset Value (NAV): The net asset value attributable to shareholders increased by 10% to P2.77 billion, up from P2.51 billion in the first half of 2024.
- Loan-to-Value (LTV) Ratio: The Group’s financial position was strengthened by a decrease in the loan-to-value ratio to 41.4%, an improvement from 43.2% in the prior period.
Portfolio Performance & Key Developments
RDC’s investment portfolio grew by 2% to P6 billion, despite the sale of P112 million in investment property since the prior period. The Group’s focus on operational improvements and carefully selected disposals is reflected in its performance.
- Vacancies: The overall vacancy rate by revenue was reduced to 5.2% from 7.0% in December 2024.
- Leasing Activity: New and renewed leases during the period amounted to 43,800 m².
- Regional Performance:
- Botswana: Despite economic challenges, the region remains stable with a vacancy rate of 7% by GLA. New and renewed leases totaled approximately 7,000 m².
- South Africa: The Western Cape portfolio continues to outperform with a low vacancy rate of 1.9% by revenue, while the Gauteng portfolio reported a 17.2% vacancy rate.
- Croatia: The portfolio in Croatia, a vital part of RDC’s currency hedging strategy, maintains a 0% vacancy rate and commands premium rentals.
Hospitality and Property Improvement Initiatives
The Group continued its property improvement program, focusing on both its hospitality and commercial portfolios.
- Chobe Marina Lodge: Reconstruction is underway, with the new lodge on track to reopen for the 2026 peak season.
- David Livingstone Safari Lodge & Spa: A property improvement program is nearing completion, and early market response has been exceptionally positive, contributing to RDC’s results.
- Gaborone Protea Marriott Hotel: Phase 1 of the property improvement, which included technical and systems upgrades, is complete.
- New Lettings: Telus Digital has taken occupation of approximately 11,500 m² in Cape Town, and a 10-year triple net lease for a 1,100 m² tenant project in Dubrovnik, Croatia, is complete and will soon contribute to the bottom line.
Corporate and Governance Update
RDC successfully executed a bonus share issuance at a ratio of one bonus linked unit for every four linked units held. This resulted in the issuance of 189,557,985 bonus units, which enhances market liquidity and returns a portion of reserves to shareholders.
In a move to strengthen its governance, RDC’s Board of Directors appointed Ms. Tshepiso Mganga and Ms. Lorato Mosetlhanyane. Their appointments increase female representation on the board to 50%. The Board’s structure includes 70% non-executive directors, of whom 86% are independent.
The offer to acquire Prime Time Property Holdings Ltd was withdrawn as the condition of securing a minimum of 44% of shares was not met. A subsequent investigation by the Botswana Stock Exchange Committee found that RDC acted lawfully and properly throughout the process.
In a strategic move to be at the forefront of innovation, RDC has committed to investing P7.5 million into a South African Proptech fund, REdimension. This investment is expected to provide a return of 30% IRR and gives the company a seat on the advisory board.
View the full results here.