- Growth driven by cost containment and strategic hospitality focus
Property investment and development group RDC Properties reported operational profits of P347 million, attributing growth to effective cost containment measures that contributed 2 percent to overall performance.
According to the groupโs 2024 annual report, currently under review, gains from joint ventures (P13.3 million) and the sale of a subsidiary (P6 million) aligned with RDCโs strategic priorities.
Listed on the Botswana Stock Exchange (BSE), RDC operates across Botswana, Zambia, South Africa, Madagascar, the USA (Tennessee), and Croatia.
RDCโs revenue for 2024 closed at P571 million, a 2 percent increase from P561 million in 2023. This growth was supported by a 3.1 percent reduction in property vacancies and a strong 12 percent year-on-year increase in the hospitality sector, which offset the impact of non-core asset disposals.
The companyโs portfolio value remained relatively stable, declining slightly to P5.92 billion from P5.99 billion in 2023, despite asset sales during the year.
In commentary accompanying the report, RDC CEO Jacopo Pari described 2024 as a pivotal year marking the companyโs evolution from post-COVID recovery to a phase focused on strategic execution and operational discipline.
Pari highlighted the portfolioโs resilience, supported by strong leasing momentum, ongoing capital recycling, and proactive tenant engagement.
โA total of 91,682 square meters in new and renewed leases were concluded, representing 27 percent of our gross lettable area (GLA), resulting in a year-end vacancy rate of 8.2 percent,โ he said. โThis was achieved through targeted leasing strategies and better alignment of lease structures with market benchmarks.โ
Focus on Hospitality
Pari noted that hospitality was a clear growth area in 2024, playing a key role in generating net operating income in hard currency and supporting long-term growth.
The Radisson RED Hotel in Rosebank continued to attract high occupancy rates, reinforcing its market leadership.
Discussions are underway to shift from a management contract to a franchiseย model, which would give RDC greater control and reduce costs, ultimately boosting rental income.
Pari also highlighted strong performance at the Protea Hotel by Marriott Masa Square in Gaborone, which outperformed competitors despite a soft, over-traded market.
โA fully financed P20 million property improvement plan is underway. With the conference center completed and HVAC upgrades in progress, the hotel is repositioned to capture renewed demand from meetings, incentives, conferences, exhibitions (MICE), and business travel,โ Pari said.
