BALWIN PROPERTIES LIMITED — Earnings Release 2026

May 11, 2026

Balwin Properties Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2003/028851/06)
Share code: BWN
ISIN: ZAE000209532
("Balwin" or "the group")

Audited consolidated annual financial statements for the year ended 28 February 2026

FINANCIAL OVERVIEW

Revenue	Increase of 21% to R2.7 billion
Profit for the period	Increase of 9% to R254.5 million
Earnings per share	Increase of 5% to 52.36 cents per share
Headline earnings per share	Increase of 4% to 47.72 cents per share
Recurring headline earnings per share	Increase of 41% to 56.44 cents per share
Net asset value per share	Increase of 7% to 976.89 cents per share

Balwin benefited from the improving macroeconomic conditions in South Africa, reflected by the recovery in apartment sales. While economic growth remained subdued, moderating inflation and a cautious easing of interest rates by the South African Reserve Bank supported consumer demand, improved loan affordability, and stimulated investment in residential property. This contributed to a more positive outlook for the sector during the year.

However, more recent global developments tempered this improving sentiment. Ongoing geopolitical tensions in the Middle East and persistent trade risks have weighed on consumer confidence, with the optimism evident at the start of the calendar year giving way to increased uncertainty.

Despite the global volatility, the group has maintained positive sales momentum, with 1 026 apartments sold in March and April 2026, building on the 1 278 apartments forward sold at the end of the reporting period. This positions the group with a strong forward sales pipeline, providing resilience against prevailing market conditions, while enabling it to capitalise on any improvement in trading conditions should macroeconomic conditions improve.

The annual results reflect a cautious recovery in the residential property market, however, are distorted by the financial impact of land sale transactions recognised in both the current and prior financial years, fair value adjustments to investment property and a write-off of feasibility costs related to the proposed inhouse development of educational facilities, which was ultimately deemed misaligned with the group's strategic objectives. These items are non-recurring and fall outside the group's core operating activities. While profit after taxation increased by 9% to R254.5 million, excluding the impact of these non-recurring items, group profit increased by 36% on a like-for-like basis and better represents the core business operations.

---

Group revenue increased 21% to R2.7 billion (2025: R2.2 billion), reflecting the improved conditions in the residential housing market. Revenue growth was primarily driven by a 22% increase in apartment sales to R2.4 billion (2025: R2.0 billion), underpinned by a 17% rise in apartment handovers with 2053 apartments recognised in revenue (2025: 1749) and supported by sales price growth.

Balwin Annuity delivered another pleasing performance, with revenue up 25% to R219.0 million (2025: R175.8 million), continuing the subsidiary's growth trajectory and maintaining its 8.1% contribution to group revenue (2025: 7.9%).

The group reported a decline in gross margin to 27% (2025: 30%). The gross profit margin from the sale of apartments remained stable at 24%, however, the financial impact of the disposal of land parcels in the current and prior year impacted on the group gross margin performance. Excluding the impact of these non-recurring items, the group's gross profit margin improved marginally to 30%, compared to 29% in the prior year.

The group continued to cautiously advance its strategy to introduce rental developments, marked by the completion of its first purpose-built rental development, The Eastlake (Linbro Park, Johannesburg east). This proof-of-concept for the rental model has delivered the desired outcomes, with a 99% occupancy ratio at year-end. In total, the group holds investment property valued at R506.9 million (2025: R325.1 million).

Developments under construction, which comprise the value of land and infrastructure costs, development rights and construction costs, increased to R6.9 billion (2025: R6.7 billion). The group continues to actively manage its development pipeline and, in line with its strategic focus on progressing existing projects, did not register any additional land during the year. Notwithstanding this disciplined approach, the group remains attentive to selective new opportunities in the Western Cape, where sustained demand for the Balwin product continues to be evident.

The group closed the period with a healthy cash position of R208.6 million (2025: R254.8 million) and continues to closely monitor, manage and plan cash flows into the foreseeable future. Cash generation from operations of R198.7 million (2025: cash used of R211.5 million) recorded a strong turnaround, underpinned by an improved profitability and supported by disciplined working capital management. Debt levels and bank covenants at period-end were within the required thresholds, with the loan-to-value ratio reducing to 38.1% (2025: 40.4%).

DIVIDEND

Following a review of current trading conditions, and considering ongoing global macroeconomic uncertainty, the board has resolved not to declare a final dividend for the 2026 financial year (2025: no dividend declared). In the prevailing environment, the board's primary focus remains the prudent allocation of capital, with particular emphasis on reducing the group's debt exposure.

The board will continue to monitor both local and international market conditions and will reassess the appropriateness of declaring a dividend for the 2027 financial year.

---

SHORT-FORM ANNOUNCEMENT

This short-form announcement has been prepared in compliance with the JSE Limited Listings Requirements and is the responsibility of the board of directors of Balwin. It contains a summary of the information in the full annual financial statements and does not contain full or complete details. The annual financial statements can be found at:

https://senspdf.jse.co.za/documents/2026/jse/isse/BWNE/FY26.pdf

BDO South Africa Inc. expressed an unmodified opinion on the audited consolidated financial statements in their report dated 11 May 2026.

Copies of the annual financial statements are available on the group's website at https://balwin.co.za/investor-relations#annual or may be requested in person at the group's registered office at no charge, during office hours.

Any investment decisions by shareholders should be based on consideration of the full financial statements.

Corlett Drive
11 May 2026

Sponsor:
Investec Bank Limited