RDC Properties Limited is signalling a potentially significant improvement in earnings for the first half of 2026, with profit before tax expected to rise by between 40% and 50% against the comparable period, the property company has revealed in a cautionary statement.
According to the group, “profit before tax for the six months ended 30 June 2026 is expected to be between P69.4 million and P74.4 million, representing an increase of approximately P19.8 million to P24.8 million over the P49.6 million recorded in the first half of 2025.”
The expected earnings growth is particularly notable against a difficult backdrop for Botswana’s economy. The country’s economic outlook by the African Development Bank recently showed that, the economy contracted in 2025. This was largely because of the prolonged downturn in the diamond market, while fiscal pressures, subdued private-sector activity and tighter financing conditions continue to weigh on business confidence.
For the South African market where RDC property also operates, the First National Bank’s commercial property insights of Q2 2026, indicate that the commercial property market is recovering, albeit unevenly and against a challenging macroeconomic backdrop. Industrial property remains the clear market leader, supported by structural demand for logistics and warehousing space. Retail continues to stabilise, with encouraging signs that the recovery is gradually broadening beyond the traditional coastal outperformers. In contrast, the office sector remains engaged in a longer-term adjustment process characterised by elevated vacancies, selective demand and increasing asset conversion activity.
RDC also benefited from selective asset disposals and ongoing property improvements, including its hospitality portfolio, while its geographically diversified earnings base provided some protection against Botswana’s domestic weakness.
The FNB insights further show that, while the Middle East conflict and the resulting tightening in monetary conditions have delayed the pace of recovery, the medium-term outlook remains constructive. As inflation moderates, borrowing costs decline and economic growth gradually strengthens, the conditions for a broader recovery in commercial property demand should improve, it says.
In the first half of 2025, the group increased profit before tax by 21 percent to P49.6 million, despite revenue declining marginally by 1 percent to P285.4 million. Net property income, however, rose 3 percent to P180.9 million, while finance costs fell, helped by easing interest rates in South Africa and Croatia. The group’s previous performance was also supported by stronger occupancy and leasing activity. Overall vacancy by revenue fell to 5.2 percent, while 43,800 square metres of new and renewed leases were concluded. Croatia recorded zero vacancy, while the Western Cape portfolio remained particularly strong.
RDC also benefited from selective asset disposals and ongoing property improvements, including its hospitality portfolio, while its geographically diversified earnings base provided some protection against Botswana’s domestic weakness.
The latest cautionary therefore raises expectations that the group’s strategy of geographic diversification, active asset management, stronger occupancy and balance-sheet discipline may once again be translating into earnings growth.
