SAPOA OPERATING COSTS REPORT ENDED DECEMBER 2022
Category Services
As a percentage of gross income, total operating costs increased 270 basis points to 43.4% at the end of 2022. This deteriorating in the gross cost to income ratio came about as a result of total operating costs growing by 19.4% while gross income grew by 11.7%.
Gross income was driven by a higher growth in tenant recoveries as opposed to growth in contractual base rental. In 2022, base rentals increased by 8.2% while fixed recoveries and variable recoveries increased by 15% and 23.3% respectively.
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Author: Property Wheel
