JSE-listed Balwin Properties has reported a 21% year-on-year increase in revenue to R2.7-billion for the year ended February 28, supported by a rise in apartment sales, a stronger forward sales pipeline and continued growth in its annuity businesses.

Profit for the year increased by 9% to R254.5-million, while recurring profit after tax rose by 36% on a like-for-like basis.

Headline earnings per share (HEPS) increased by 4% to 47.72c, with recurring HEPS having increased by 41% to 56.44c. The group’s net asset value increased by 7% to 976.89c.

Revenue from the sale of apartments increased by 22% to R2.4-billion, underpinned by a 17% increase in apartment handovers, with 2 053 apartments recognised in revenue compared with 1 749 apartments in the prior year.

The group added that its forward sales position continued to strengthen, with 1 278 apartments pre-sold at year-end, compared with 814 in the prior year, while 1 026 gross sales were recorded in March and April this year.

Balwin also noted that its annuity platform continued to scale, reporting a 25% increase in revenue to R219-million and R1.2-billion in assets under management, as the developer continued to position sustainability and energy efficiency as key differentiators across its residential developments.

Balwin’s annuity platform maintained an 8.1% contribution to group revenue during the year, with 11 740 active clients connected to the Balwin Fibre network. To date, about 4 500 t of CO₂ have been prevented through Balwin Energy.

Further, Balwin highlighted that 27 802 of their apartments have preliminary Excellence in Design for Greater Efficiencies (EDGE) certifications, 11 lifestyle centres were awarded six-star Green Start ratings, there has been 34% reduction in Scope 1 and 2 carbon emissions in the financial year funder review, and 1 812 green bonds have been secured for clients, with R126-million in estimated savings in the financial year.

Demand remained the strongest for one- and two-bedroom apartments, which accounted for 76% of apartments handed over during the year, compared with 74% in the prior period.

The Western Cape was the largest regional contributor, accounting for 54% of revenue from the sale of apartments, and the region’s performance was led by developments including De Aan-Zicht, Greenbay, The Huntsman, De Kuile and Suikerbos.

Gauteng continued to show depth across selected nodes, while KwaZulu-Natal remained resilient, supported by Ballito Hills and Izinga Eco Estate.

The Classic Collection remained the core contributor to group revenue, supported by its strong presence in the Western Cape and continued demand for Balwin’s lifestyle-oriented apartments. The Green Collection continued to serve the group’s more affordable entry-level offering, while the Signature Collection maintained its positioning in select premium nodes.

Balwin CE Steve Brookes said the group had benefitted from improving residential market conditions during the year, supported by moderating inflation and an easing in interest rates, which improved affordability, buyer confidence and fixed property investment.

“The 2026 financial year reflects a meaningful recovery from what was our toughest trading period since the business was founded in 1996. The improvement in this year’s numbers should therefore be seen in the context of the very low base set in 2025, but also in the context of a macroeconomic cycle that has remained uneven,” he commented.

“While conditions have clearly improved, we are not assuming a clean or uninterrupted recovery. Interest rates [that] were a material headwind through the prior period, became a tailwind as the easing cycle started to support affordability, and may become a headwind again if recent fuel price pressures flow through into inflation and interest rates rise over the medium term.

“We are therefore managing the business around what we can control: matching construction to sales velocity, protecting liquidity, containing costs, and maintaining product quality without compromising affordability,” Brookes added.

Looking ahead, Balwin noted that the demand for high-quality, affordable and lifestyle-oriented residential apartments remained aligned with the basic principles of the South African housing market.

However, the group remains cautious about the outlook, noting that while the operating environment has improved materially from the prior year, renewed global and domestic inflation risks could affect affordability and consumer confidence.

“Balwin has come through a difficult cycle with a stronger operational base, a clearer focus on cost and capital discipline, and a product offering that remains highly relevant to the market. We are encouraged by the recovery, but we are not complacent.

“The inflationary impact of recent fuel price increases has not yet fully filtered through to consumers, and rising interest rates over the medium term remain a real possibility.

“Our priority is therefore to protect cash, reduce debt exposure over time, contain operating and development costs, and convert the stronger sales environment into sustainable earnings, improved margins and stronger returns on invested capital,” Brookes concluded.