JSE-listed housing developer Balwin Properties handed over 1 058 residential units, which contributed to a 33% increase in revenue to R1.19-billion for the six months ended August 31.

An average unit selling price of R1.12-million was achieved, compared with R1.2-million in the same period of 2017.

The company’s operating profit is up 13% to R246-million, with net asset value a share having increased by 18% to 509c.

Headline earnings a share and earnings a share both increased 9% to 38c apiece.

The company has declared no interim dividend and will revisit this decision at financial year-end.

Balwin CE Steve Brookes said in a statement published on Monday that the strong results are a result of continued demand for the company’s unique product and lifestyle offering, despite tough economic conditions and an increase in the value-added tax rate.

Owing to the flexibility of the company’s block configuration, management can easily and cost effectively respond to market demand and conditions, increasing the number of apartments from 10 to14 units per block.

During the period, new design one-bathroom, two-bedroom units and two-bedroom, two-bathroom units were introduced in a more competitive price bracket without impacting on Balwin’s overall gross profit margin.

“Our model of continuous development means we remain active across numerous sites, rotating artisanal skills as we progress with the different phases of each development,” explained Brookes.

The company targets the sale of about 30 to 35 apartments per location per month across developments in Gauteng, the Western Cape and KwaZulu-Natal, retaining pricing tension.

Balwin has engaged with strategic partners to explore the unlocking of annuity income opportunities such as renewable solar energy and fibre infrastructure.

Meanwhile, Balwin is developing a rent-to-buy product, where it will secure lease agreements for these apartments before selling them to a strategic partner.

These apartments – to be developed in phases based on demand – will have a distinctive architecture, but will retain the quality and innovativeness Balwin is known for.

The rent-to-buy model could further act as a catalyst for the accelerated development of Balwin’s land bank.

“We expect that our strong performance will continue in the medium term, based on consistent demand for our unique offering and the early stages of most of our current developments,” stated Brookes.

The company continuously investigates opportunities to enhance its offering, adding to the lifestyle experience of its customers, such as its partnership with Crystal Lagoons at The Blyde development, he added.

Post the reporting period, on September 8, Balwin launched The Blyde, a R4.2-billion residential development in Pretoria East, which includes the first clear-water lagoon to be built in sub-Saharan Africa.

At 1.5 ha – slightly larger than two rugby fields – the lagoon provides a beach setting for residents. Demand has been “exceptional”, said Balwin, with phases one to four sold out and pre-sales remaining strong on the back of the unique lifestyle concept piloted by Balwin.

The company has been recognised internationally at the Africa & Arabia Property Awards where Balwin won two awards in the categories of “Apartment, for South Africa” for its Paardevlei Square development in Somerset West, in the Western Cape, and the five-star “Leisure Interior” award for The Polo Fields club house, in Waterfall, in Johannesburg.

Polo Fields club house will now compete in London for the honours of best “Leisure Interior” in the world.

Balwin has 11 developments under way, the majority of which are at the early stages of the project.