JSE-listed residential real estate investment trust Balwin Properties expects its headline earnings a share for the year ended February 29 to be about 11% lower year-on-year at about 90.5c.

The company, which will release its results on or about May 15, on Wednesday informed shareholders that it had sold about 2 700 apartments in the year under review, compared with the 2 437 apartments sold in the prior year, while its cash had increased by R150-million to R475-million in the reporting year.

The company continued to experience strong demand for its lifestyle apartments in the year under review, despite economic headwinds and increasing consumer pressures.

Balwin expects to report an 11% year-on-year increase in revenue for the year under review.

In response to depressed economic conditions, which leads to more intense competition, Balwin increased its marketing campaigns to clients.

“While proving highly successful in driving sales, these campaigns contributed to a roughly 5% reduction in the average selling price of apartments, which was absorbed by the healthy margins of the business,” the company stated.

Balwin said it would limit the campaigns to clients in the current financial year, while remaining cognisant of the prevailing economic environment and its impact on customers. Specific marketing campaigns would remain a key component of the business and would be employed to drive sales, where necessary.

Following year-end, Balwin had pre-sold 570 apartments, valued at close to R1-billion, which was mainly a result of the launch of the R9-billion Munyaka development, which was under construction in Waterfall, Midrand.

The property features the company’s second Crystal Lagoon and will comprise 5 020 one-, two- and three-bedroom apartments. The entire development will be completed over a period of eight years.

Meanwhile, the Balwin board remained apprehensive about the prevailing macroeconomic climate, which was being exacerbated by the coronavirus outbreak. The company would continue to carefully manage its cash and contain costs.