RDC Properties’ profit falls 90 percent due to subdued hospitality industry

main reasons for the decrease are management’s conservative approach to the valuation of the investment property portfolio in the current period (effect of circa P110.0 million. or 70 percent) and a reduction of income from hospitality properties due to the challenging operating conditions in the extended Covid-19 national lockdowns in Botswana

RDC Properties’ profit falls 90 percent due to subdued hospitality industry
GABORONE 15 May 2019, BOTSREAL held it's 2nd annual property and infrastucture forum in Gaborone on 15 May 2019, and a number of issues were discussed in detail and theme for this year forum was Innovating For Growth. Executive Chairman, RDC properties, Guido Glachetti presenting on property investments in uncertain political and economical climates Pic: Tshekiso Tebalo/ Press Photo

The Board of Directors of RDC Properties Limited advised shareholders that the profit before tax for the year ended 31 December 2020 will be approximately between 80 percent and 90 percent or P129.7 million to P145.9 million lower than the P162.1 million reported for the period ended 31 December 2019.

According to the company’s announcement, the main reasons for the decrease are management’s conservative approach to the valuation of the investment property portfolio in the current period (effect of circa P110.0 million. or 70 percent) and a reduction of income from hospitality properties due to the challenging operating conditions in the extended Covid-19 national lockdowns in Botswana. “The nature of the Group portfolio, diversified by geographical area has enabled the company to mitigate the impact of fair value adjustments on the portfolio,” the company said adding that acquisitions in South Africa and the USA in Q1 2020 have been accretive and supported the Group.

The information contained in the announcement represents only a preliminary assessment made by the Board based on the information made available to the Board as at the date hereof. Full details will be provided upon the release of the final audited financial results for the period, which will be released by end of March 2021, and the actual results may differ from those disclosed herein.