JSE-listed Balwin Properties reported a robust recovery in its core operations on Monday for the financial year ended 28 February 2026, with revenue jumping 21% to R2.7 billion.
While statutory profit after tax saw a 9% increase to R254.5 million, the group said after stripping away non-recurring items, such as land disposals and fair value adjustments, like-for-like profit actually surged by 36%.
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The property developer benefited from moderating inflation and a “cautious easing” of interest rates by the South African Reserve Bank during the year, which improved loan affordability and stimulated consumer demand. This shift drove a 22% increase in apartment sales, totalling R2.4 billion.
Despite more recent global geopolitical tensions in the wake of the Middle East conflict weighing on consumer confidence, Balwin maintains a significant buffer.
The group reported 2 304 apartments forward sold as of May 2026, including 1 026 units sold in just the first two months of its new financial year.
A major highlight of the year was the completion of The Eastlake in Linbro Park, Balwin’s first purpose-built rental development.
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Positioned as a “proof-of-concept” for the group’s rental strategy, the project achieved a 99% occupancy ratio by year-end. The group’s total investment property portfolio is now valued at R506.9 million.
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Conversely, the group took a strategic write-off of R5.7 million in feasibility costs related to a proposed education project. Management came to the realisation that the in-house development of educational facilities was “misaligned” with core strategic objectives.
Debt reduction
Balwin recorded a massive turnaround in cash generation, shifting from a R211.5 million outflow in 2025 to a R198.7 million inflow from operating activities in 2026. This disciplined approach saw the group’s loan-to-value ratio reduce to 38.1%.
In a move to further fortify its balance sheet, the board has resolved not to declare a final dividend for the 2026 financial year.
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“In the prevailing environment, the board’s primary focus remains the prudent allocation of capital, with particular emphasis on reducing the group’s debt exposure,” the group stated in its results Sens anouncement.
Read: Balwin’s sales rebound, but still no dividends
Balwin’s results were not without isolated hurdles. The group reported a R55.9 million gross loss on a specific land disposal in Cornubia, KwaZulu-Natal.
Access to the development remains “severely constrained” due to incomplete infrastructure for which a third-party seller was responsible, leading Balwin to make the strategic decision to exit the investment, it said.
Balwin closed the period with a cash position of R208.6 million and remains focused on “progressing existing projects” rather than acquiring additional land, though it remains “attentive” to demand-driven opportunities in the Western Cape.
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