The five largest property companies listed on the Johannesburg Stock Exchange (JSE) have a combined market capitalisation of R119.9 billion, meaning that the CEOs’ of the companies earn R254 247 per day.
In its annual results, Growthpoint Properties noted that South Africa’s property landscape has faced ‘unprecedented challenges’, which included low domestic growth, volatile global markets caused by interest rates that ‘remain higher for longer’ and geopolitical tension that’s on the rise, as reported by BusinessTech.
Also read: Cape Town offers best property rates of SA’s cities for 2024/25
The cost of capital in South Africa has also been cited as the biggest challenge facing property groups at the moment, according to Laurence Rapp, Vukile Property CEO.
Rapp cited Vukile Property’s inability to make ‘at least’ R5 billion of a potential R7 billion in acquisitions in South Africa work because of the cost of capital.
In addition, because of the current interest rates in SA, it was ‘going to make more financial sense’ to invest offshore. While interest rates are high around the world, they are much higher in SA, which reduces potential local acquisitions.
As Vukile Property is the third largest JSE-listed property company, it should come as no surprise that the company has reported a notable market cap of R18.7 billion, making Rapp the highest-paid CEO of the five largest property companies.
In 2023, Rapp received a total compensation package of R23.2 million, which included base salary, short-term incentives, cash bonuses, benefits and long-term incentive plans. This works out to R63 562 every day.
Norbert Sasse, Growthpoint Properties CEO, stands as the second highest-paid CEO. Growthpoint has also been described as the biggest of the five largest property companies listed on the JSE. Sasse earned R22.4 million in total, or R61 370 per day.
Third is Andrew König, Redefine Properties CEO, who earned R18.1 million in total, or R49 589 per day, while Des de Beer, Resilient Reit CEO, is fourth, as he earned R17.6 million or R48 219 per day.
De Beer, however, has been replaced by Jacobus Johann Kriek, as of January 2024, as CEO for the 2024/25 financial year.
Finally, the lowest-paid CEO was Morné Wilken, Hyprop CEO, who earned R11.5 million in total or R31 507 per day.
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