Tsogo Sun may list property unit separately, posts flat H1 profit

by Reuters 0

South African gaming and hotel group Tsogo Sun is considering listing its property portfolio worth 30 billion rand ($2.5 billion) separately as a Real Estate Investment Trust (REIT), its CEO said on Thursday.

Tsogo Sun will make the decision before the end of this year and if listed, Tsogo will still retain control of the property division, said CEO Marcel von Aulock.

Meanwhile, Africa’s biggest hotels and gambling operator, posted a slight drop in full-year profit on Thursday as cash-strapped consumers in its mainstay South African market cut back on gambling.

Tsogo Sun said diluted headline earnings per share, the main profit measure in South Africa that strips out certain one-off items, dipped 1 percent to 175 cents.

Consumers in Africa’s most advanced economy are spending less due to high personal debt levels and rising fuel prices while a weak economy restricted business and government travel, which has led to low hotel occupancies.

Tsogo Sun, which also operates hotels in several other countries such as Nigeria, Kenya and Mozambique, said fears over the Ebola virus hit its hotel business in the rest of Africa.