Balwins FY2025 revenue fell 6 to 120.6 million as high interest rates and political uncertainty impacted homebuyer sentiment in the first half.
Profit climbed 8 to R234 million, driven by improved second-half sales after a rate cut and the formation of South Africas Government of National Unity.
Annuity income rose 33 to 9.7 million, helping stabilize earnings and lift the groups gross margin to 30 amid slower apartment handovers.
Balwin Properties Balwin, a Johannesburg-based residential property developer led by South African businessman Stephen Brookes, posted a 6 percent drop in annual revenue for the 12 months ended February 2025, as prolonged high interest rates and political uncertainty weighed on homebuyer affordability and investor confidence.
Revenue slumps while profit rose by 8Amid the single-digit drop in year-on-year revenue to R2.2 billion 120.6 million according to its audited statement , the groups net profit rose by 8 percent to R234 million 12.82 million, up from R217.1 million 11.9 million in the previous fiscal year, buoyed by a rebound in sales following the September 2024 interest rate cut and improved market sentiment driven by the formation of South Africas Government of National Unity.
The group generated 62 percent of its full-year revenue and 67 percent of its profit in the second half, as the lower rate environment triggered a 30 percent surge in monthly apartment sales during the latter part of the fiscal year.
While total apartment deliveries declined 8 percent from 1,892 units in the previous year to 1,749 units in FY2025, the groups annuity income arm delivered a robust performance. Balwin Annuity increased its revenue by 33 percent to R175.8 million 9.7 million, contributing 7.9 percent to overall group revenue, up from 5.6 percent the year before.
Balwin CEO Stephen Brookes highlights resilienceCEO Stephen Brookes said the business had shown resilience in a difficult economic climate. The first half was particularly tough, but we were encouraged by the recovery in the second half, spurred by the rate cut and political stability.