Balwin Annuity delivered another solid performance, with revenue increasing by 25% to R219.0 million for the year ended 28 February 2026.
JSE-listed Balwin), a developer focused on environmentally responsible building practices and the delivery of high-quality, affordable, lifestyle-oriented apartments, today released its audited financial results for the year ended 28 February 2026.
Balwin said the annuity said Balwin Annuity maintained its 8.1% contribution to group revenue, reinforcing the growing importance of complementary revenue streams around the core development business.
The annuity platform includes Balwin ICT, Balwin Real Estate, rentals, customer services, Green Living and other businesses including padel, signage and towers.
The property group said Balwin ICT recorded continued growth, supported by 16 507 homes passed, 11 740 active clients and a 70% uptake at homes connected. Balwin Green Living operated across 13 developments and contributed to a reduction of approximately 4 500 tonnes of carbon dioxide emissions across the group.
The rental portfolio achieved an average occupancy rate of 96.9% during the year. The Eastlake, Balwin’s first purpose-built rental development in Linbro Park, reached practical completion in November 2025 and was independently valued at R163 million at year end. Subsequent to year end, the Greenpark rental apartment portfolio was sold for R171.8 million, with proceeds to be used to reduce debt and provide cash for reinvestment into the rental portfolio.
The group has identified approximately 7 700 apartments for potential development within the build-to-rent portfolio. This opportunity will be introduced cautiously and in a measured manner, aligned to demand, funding, returns and the broader annuity strategy.
On the other hand, Balwin reported that revenue rose by 21% to R2.7 billion, compared to R2.2 billion in the prior year, reflecting improved residential market conditions and a recovery in apartment sales. 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 to 1 749 apartments in the prior year.
Demand remained strongest for one- and two-bedroom apartments, which accounted for 76% of apartments handed over during the year, compared to 74% in the prior period.
The Western Cape was the largest regional contributor, accounting for 54% of revenue from the sale of apartments. 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 high-quality, 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.
“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 macro-economic cycle that has remained uneven,” said Balwin Chief Executive, Steve Brookes.
Brookes said the group had benefited 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.
“While conditions have clearly improved, we are not assuming a clean or uninterrupted recovery. Interest rates 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.”
Balwin closed the year with a cash position of R208.6 million and cash on hand remained above funding covenants and board thresholds. Cash generated from operations improved strongly to R198.7 million, compared to cash used in operations of R211.5 million in the prior year, supported by improved profitability and disciplined working capital management.
Development loans and facilities reduced to R3.2 billion from R3.3 billion, while the loan-to-value ratio improved to 38.1% from 40.4%. The group remained fully compliant with its financial covenants at year end.
Developments under construction increased to R6.9 billion, reflecting continued investment in land, infrastructure, development rights and construction costs. The increase was predominantly concentrated in the Tshwane node, driven by infrastructure expenditure for the next phase of the Mooikloof Smart City development.
Brookes said capital discipline would remain a core focus.
“Capital structure remains a key focus area. Our strategic intent is to reduce debt exposure over time, while still maintaining an optimal pipeline across our operating nodes. We do not want to underinvest into demand, but we also do not want to carry unnecessary exposure in a higher-cost funding environment.”
