JSE-listed Balwin Properties continued to experience strong demand for its lifestyle apartments in the six months ended August 31, despite ongoing economic headwinds and the financial pressure facing consumers.
During the six months under review, the company continued to focus on cash preservation and executing on its existing development pipeline, with the company noting pleasing results from both.
Balwin sold and handed over 1 309 apartments during the period, representing a 24% increase from the prior period.
The rate of sales across the developments was in line with the group's expectations.
An increase in the number of apartments recognised in the current financial period contributed to revenue growth of 19% over the prior interim period.
A further 982 apartments have been pre-sold for the 2020 financial year.
Meanwhile, earnings a share increased by 4%; while headline earnings a share increased by 5% year-on-year.
The board declared an interim dividend of 11.7c per ordinary share.
Notwithstanding robust demand for the group’s lifestyle products, Balwin remains concerned about macroeconomic growth, interest rates and policy uncertainty.
The company plans to place even greater emphasis on cash preservation, prudent capital allocation and cost containment, especially given the infrastructure requirements of several developments.
Despite the current economic climate, the group remains optimistic about medium- to long-term economic growth forecasts and believes it is well positioned to remain resilient in the current climate.
Balwin intends to maintain a consistent dividend pay-out ratio of 30% profit after taxation.