CAPE TOWN - Balwin Properties, a developer of high-quality apartments, reported a robust performance for the six months to August 31 despite prevailing economic headwinds and consumer pressure.
CE Steve Brookes said: “The first half results are very encouraging. We’ve adapted our sales offering to include more one- and two-bedroom apartments. We also launched focused promotional campaigns that have supported strong sales in the period.”
Balwin continued to focus on cash preservation with cash resources increasing to R211 million. An interim dividend of 11.70 cents per ordinary share was declared.
Some 1 309 apartments were recognised in revenue and handed over compared, an increase of 24 percent, with strong sales at The Blyde (Tshwane East), Ballito Hills (Ballito) and Kikuyu (Waterfall).
This included 1 213 build-to-sell apartments and 96 rental apartments sold to Balwin Rentals Proprietary.
The group will phase out its elite model on completion of current development projects due to lacklustre market conditions..
Revenue increased by 19% to R1 42 billion. A profit of R185 million was reported for the period. Earnings and headline earnings per share increased to 40 cents, an increase of 4 percent and 5 percent over the comparative six month period respectively.
During the six months, Balwin achieved another first when it registered over 16 000 apartments as EDGE certified – a world record.
An innovation of the International Finance Corporation (IFC), a member of the World Bank Group, EDGE was created to respond to the need for a measurable solution to prove the financial case for building green, and to help jumpstart the proliferation of green buildings.
The EDGE standard is set at a minimum of 20 percent reduction across energy consumption, water usage and embodied energy in materials.