RDC PROPERTIES ANTICIPATES PROFIT SURGE
RDC Properties expects outstanding increase in profit before tax for the half year ended 30 June 2022, following its expansion in South Africa. The company stated that the profit will be approximately between 170 percent and 190 percent or P46.4 million to P51.8 million higher than the P27.3 million reported for the period ended 30 June 2021. “The main reason for the increase is the full six-month inclusion of the Tower Property Fund Limited business, acquired effective 28 December 2021. The business acquisition increased RDC Properties Limited footprint in the South African and Croatian property markets.”
While trading conditions are becoming stiffer for most economic sectors due to global price increases, the property sector continues to show some resilience with the residential market showing good performance. RDC Properties Chief Executive Officer, Jacopo Pari recently highlighted that current trends revealed luxury homeowners shifting their habits from renting out their properties to taking occupation. “This led to reduced stock in the market for good quality residential houses. While the hospitality sector is still recovering from the COVID-19 impact over the past two years, the office and retail sectors seem to be seeing some signs of recovery though with demand for large office spaces without any material impact on rental prices.”
In December last year, RDC Properties acquired Tower Properties with assets in South Africa and in Croatia, as well as the opening of the Radisson Red in Rosebank, Johannesburg. These acquisitions represent a significant diversification of the Group’s property portfolio both in terms of use and location. Pari highlighted that revenues generated in Botswana for the forthcoming period will amount to 25 percent of the total revenue, while South Africa will represent 50 percent of the total revenue, the remaining revenues will be generated in Europe and the rest of the portfolio. The hospitality revenue for the Group will dilute to five percent of the total revenue, further mitigating the portfolio risk. In total, the portfolio has grown some 153 percent from P2.29 billion to P5.82 billion.