RDC Properties Limited has delivered a strong set of audited financial results for the year ended 31 December 2025, reflecting improved operational performance across its diversified portfolio and continued progress in strengthening its balance sheet.
Financial Performance Highlights
The Group recorded steady revenue growth, with total revenue increasing by 5% to P600.9 million, supported by improved occupancy levels and consistent rental growth across key markets.
Net property income rose by 8% to P386.9 million, demonstrating the benefits of focused asset management and disciplined cost control. Profit from operations increased by 16% to P474.2 million, supported by stronger underlying property performance and positive revaluation gains across selected assets.
Profit before tax increased significantly to P263.4 million, while profit for the year rose by 53% to P236.8 million, highlighting the continued strengthening of RDC’s earnings profile.
The Group maintained a strong focus on balance sheet optimisation. The loan-to-value ratio reduced to 37.68%, enhancing financial flexibility and reducing exposure to interest rate volatility. Net asset value increased by 8% to P3.17 per linked unit.
In line with improved profitability, total distributions to shareholders increased by 42% to P87 million, reinforcing the Group’s commitment to delivering sustainable returns.
Despite the disposal of non-core assets totalling P216 million, the overall portfolio value remained stable at approximately P5.97 billion, reflecting the resilience and quality of RDC’s diversified property portfolio.
Operational Performance and Portfolio Activity
Operationally, the Group made meaningful progress during the year, driven by proactive leasing strategies and disciplined asset management.
Portfolio vacancy by revenue declined to 5.3%, down from 7% in the prior year, supported by sustained leasing activity and improving tenant demand across key regions.
In South Africa, the Western Cape portfolio continued to perform strongly, benefiting from favourable economic fundamentals and robust tourism activity. Johannesburg showed improving leasing momentum, particularly across office and mixed-use assets.
Notable leasing activity included:
- The introduction of new retail and restaurant concepts at the Old Cape Quarter precinct in Cape Town
- The renewal and expansion of DHK Architects within the precinct
- The successful letting of a 1,525 sqm anchor space at Evagold Shopping Centre
- New commercial leases concluded in KwaZulu-Natal
In Botswana, the portfolio remained stable, supported by strong tenant relationships and long-term government occupancy. Key leasing activity included a new lease with the Ministry for State President and renewals with existing tenants such as Huawei.
The Group also continued to optimise its portfolio through the disposal of non-core assets, including properties in South Africa and residential units in Cape Town. These transactions were concluded at an average premium of 8% to book value, reinforcing the Group’s valuation discipline and contributing to shareholder value.
Hospitality and Property Enhancements
The hospitality portfolio delivered mixed performance during the year. Radisson RED achieved strong results, supported by increased demand linked to G20-related activity, while trading in Gaborone remained below expectations.
A property improvement programme at Protea Hotel Masa Square is currently underway and is expected to support improved performance from mid-2026. Chobe Marina Lodge has recorded strong forward bookings following its reopening, with a positive outlook for the year ahead.
Across the broader portfolio, RDC continued to invest in asset quality and operational resilience. Key initiatives included infrastructure upgrades, waterproofing programmes, and the rollout of solar installations across multiple properties.
Sustainability Progress
Sustainability remains a core focus for RDC’s long-term strategy.
As at December 2025, the Group operated 12 solar PV installations with a combined capacity of approximately 2.6 MWp, generating 2.34 million kWh of renewable energy during the year. This reduced carbon emissions by approximately 2,183 tonnes and delivered cost savings of P2.51 million.
Solar energy now contributes approximately 25% of electricity consumption at properties where installations are operational, with further projects in the pipeline set to expand capacity.
Additional sustainability initiatives include water security infrastructure, waste management programmes, and ongoing efforts to achieve green building certifications across the portfolio.
Corporate Developments and Governance
During the year, RDC successfully implemented a bonus share issue at a ratio of one bonus linked unit for every four held, resulting in the issuance of over 189 million new units. This initiative enhanced market liquidity and returned value to shareholders while supporting long-term growth.
The Board continues to maintain a strong governance framework aligned with best practice. Key developments included board changes approved at the Annual General Meeting, as well as ongoing performance evaluations to ensure effective leadership and oversight.
Awards and Recognition
The David Livingstone Safari Lodge & Spa received multiple prestigious awards during 2025, reflecting its commitment to excellence following its refurbishment. These accolades recognise the lodge’s high standards of service and its contribution to the regional tourism sector.
Outlook
RDC enters 2026 with a strengthened balance sheet, improved operational performance, and a resilient, well-diversified portfolio. Continued focus on leasing, asset optimisation, sustainability, and disciplined capital allocation positions the Group well to deliver sustainable long-term value to stakeholders.
View the full results here.