MASTER INVESTOR PROFILE
BRIGHT GREEN FUTURE
Earlier this month , Balwin Properties released their interim financial results for the six month period ended 31 August 2022 . There ’ s a healthy cash position of R581.2m ; revenue was up 20 % to R1.6 billion ; profit increased 48 % to R173 million ; net asset value per share increased to 771.39 cents ; and headline earnings a share increased 47 % to 36.63 cents . The interim results were well received by shareholders , as was the interim gross dividend of 9.9 cents per ordinary share .
“ It is important that we structure our annuity business to give maximum benefits to our clients so that they enjoy the added value as we grow .”
According to Steve there has been a noticeable increase in demand in the Western Cape and the company is benefitting from the semigration trend . Operations in the coastal regions of KwaZulu-Natal and the Western Cape now account for 53 % of total revenue , up from 40 % in the prior financial period , while Gauteng dropped from 60 % to 47 % this period .
“ We were pleased to see the gross profit margin increase to 26 % in the six months , due to cost containments and more robust pricing on the sale of early phase apartments . The 1 551 apartments forward sold but not yet recognised in revenue will support growth in the next six months and beyond . Presently , we have a secure development pipeline of 45 411 apartments across 27 developments , representing about a 15-year development horizon .”
Steve explains that cost increases were limited through effective cost engineering and concentrated cost containment . “ Demand for
14 NOV 2022 SA Real Estate Investor Magazine