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Key Points
- Balwin’s 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 Africa’s Government of National Unity.
- Annuity income rose 33% to $9.7 million, helping stabilize earnings and lift the group’s 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 8%
Amid the single-digit drop in year-on-year revenue to R2.2 billion ($120.6 million) according to its audited statement, the group’s 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 Africa’s 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 group’s 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 resilience
CEO 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.”
The company ended the year with R254.8 million ($14 million) in cash and lowered its loan-to-value ratio slightly to 40.4 percent, continuing a focus on debt reduction. For a second consecutive year, Balwin withheld a dividend to strengthen its balance sheet. “We’re positioning the group for sustained long-term value, even as we navigate the current cycle,” Brookes said.
Balwin's legacy and market footprint
Balwin Properties, founded in 1996, has grown into one of the top real estate developers listed on the Johannesburg Stock Exchange. The company has built its name on large, master-planned lifestyle estates designed to meet the needs of South Africa’s low- and middle-income families.
At the heart of that growth is Steve Brookes, who has spent nearly three decades guiding the company from a small startup to a major force in residential property development. With a 33.07 percent controlling stake valued at R343.93 million ($18.83 million), Brookes ranks among South Africa’s wealthiest individuals.
