Balwin reports double digit HEPS

Balwin Properties, a residential property group, has reported a significant increase in their financial performance, with a 20% jump in revenue and a 48% increase in profit to R173 million. CNBC Africa spoke to Balwin Properties CEO Steve Brookes to delve deeper into the company's success and future plans. Despite various challenges such as the war in Ukraine, floods in South Africa, rising inflation, and interest rates, Balwin Properties has managed to thrive due to hard work, a strong management team, and a focus on customer satisfaction. Brookes highlighted the importance of innovation in the face of rising interest rates. The company offers concessions on interest rates for green buildings, loyalty plans for repeat customers, and incentives for first-time homeowners to support their clients. While banks are becoming more cautious with lending, Balwin Properties' products remain popular, and they are confident in navigating through the current economic environment. Brookes emphasized the need for government investment in education and infrastructure to drive economic growth. In light of inflationary pressures, Balwin Properties plans to implement moderate price increases to cover rising costs, with a commitment to keep these increases below 5%. Looking ahead, the company has ambitious plans for expansion, with projects in the Western Cape, Kwazulu-Natal, and Gauteng regions, as well as the development of the Moi-Kuala Smart City. While there are considerations for future expansion beyond South Africa, Brookes stressed the importance of waiting for the right economic conditions. Potential markets of interest include Kenya, Ghana, and Zimbabwe. Balwin Properties already owns substantial land holdings, with a land bank of 45,000 apartments, providing a strong foundation for future developments. Despite positive prospects, Brookes highlighted political risks as the biggest challenge for the company, emphasizing the need for improved local governance, infrastructure development, and addressing housing inequality. He called for proactive action from government authorities to drive growth and uplift disadvantaged communities. Balwin Properties remains optimistic about the future, with a focus on sustainable growth, customer satisfaction, and long-term success.