Balwin Properties Limited ($BWN)

Good morning, ladies and gentlemen. Thank you for joining us for a prerecorded presentation of our results for the year ending 28th February 2026. I'm Steve Brookes, Chief Executive Officer; and I'm joined today by our Chief Financial Officer, Jonathan Bigham; as well as Raaziq Ismail, our Head of Legal and Annuity. Please send through any questions during the course of the presentation and we will revert to each one of you via e-mail. The presentation will follow our usual format. We'll begin with an operational overview followed by a review of our financial performance, our Annuity businesses and our sustainability progress before closing with our outlook for the year. The 2026 financial year reflects a meaningful recovery from what was our toughest trading period since the business was founded in 1996. The improvement in this year's numbers should therefore be seen in the context of the very low base set in 2025, but also in the context of a macroeconomic cycle that has remained uneven. During the reporting period, the market benefited from an easing in interest rates and a moderation in inflation. That supported affordability, improved buyer confidence and helped stimulate fixed property investment. Those tailwinds were particularly important for our core market where monthly repayments and bond qualification remains critical to our demand. However, the cycle has not moved in a straight line. Interest rates were a material headwind through the prior period. They then became a tailwind as the easing cycle started to support affordability. And more recently post the balance sheet date, rising oil prices have renewed inflationary pressure with interest rate increases now a real likelihood. So while conditions have clearly improved, we are not assuming a clean or uninterrupted recovery. We continue to manage the business around what we can control; matching construction to sales velocity, protecting liquidity, containing costs and maintaining product quality without compromising on affordability. Regionally, the Western Cape continues to be the standout contributor supported by demand for well-located lifestyle-orientated developments. KwaZulu-Natal remained resilient supported by coastal and lifestyle demand while Gauteng continued to show depth in selected nodes, particularly where our developments offer scale, affordability and lifestyle infrastructure. These initiatives translated into a materially stronger operational performance for the year. We handed over and recognized 2,053 apartments in revenue compared with 1,749 apartments in the prior year. Revenue from Balwin Annuities contributed 8.1% to group revenue showing the continued progress of our strategy to build complementary revenue streams around the core development business. Our commitment to sustainable development also continued to scale. We now have 27,802 apartments with international EDGE certification and our sustainability credentials remain an important differentiator for Balwin and a direct financial benefit for our clients. The Western Cape was the largest regional contributor for the year accounting for 54% of revenue from the sale of apartments. Our build-to-sell pipeline remains substantial at 26,334 apartments and Balwin has now achieved 61 international awards at the Africa and Arabia Property Awards. The important point is that this was not only a volume recovery. It was a recovery delivered while maintaining cost discipline, preserving cash and keeping the business focused on its core operating model. Revenue increased by 21% to ZAR 2.7 billion compared with ZAR 2.2 billion in the prior year. That growth reflects the improvement in residential market conditions, but it also reflects the operational discipline applied through the downturn and into recovery. Apartments handed over increased by 17% to 2,053 apartments. One and 2-bedroom apartments remained the core of demand accounting for 76% of apartments compared with 74% in the prior year. This confirms the continued depth of demand for well-priced efficient apartments in our target market. As mentioned earlier, the Western Cape contributed 54% of group revenue from apartment sales making it the largest contributor for the year. That strength is encouraging, but we remain cautious about assuming that the Western Cape can continue on the same trajectory indefinitely. Any future exposure in that province will therefore remain selective and aligned to expected demand, zoning, servicing and capital allocation discipline. At year-end, we had 1,278 apartments presold for future financial periods compared with 814 apartments at the prior year. This provides good visibility into future revenue and the strong sales performance continued after year-end with 1,026 gross sales recorded during March and April 2026. Our Annuity business also performed well with revenue increased by 25% to ZAR 219 million. Raaziq will unpack the underlying performance in more detail, but the key point is that these businesses are increasingly relevant to the group's broader strategy and customer proposition especially considering the strong link between interest rates and the sale of new apartments. On this slide, we break down the apartments recognized in revenue by development, region and type of apartment. For the benefit of those not familiar with our range of apartments, we have 3 collections. The Green Collection representing our entry-level and most affordable design option. The Classic Collection, which represents the core of our business. The Signature Collection, which represents high luxury finishes and amenities in select areas. Sales in the Western Cape were again prominent. De-Aan-Zicht contributed 294 apartments. Greenbay, 219; The Huntsman, 216; De Kuile, 204; and Suikerbos, 155. These developments were the largest contributors to apartments recognized in revenue and reflect both the strength of demand in the province and the maturity of our active construction pipeline there. Gauteng also made a broad contribution across the portfolio with Greenlee, Munyaka, The Reid, the Whisken, Thaba Eco Village, Greenkloof, Mooikloof Eco-Estate, The Blyde, Greencreek, the Polofields and Greenpark; all contributing to revenue for the year. KwaZulu-Natal contributed through Ballito Hills and Izinga Eco-Estate. Ballito Hills remains a meaningful contributor in the region while Izinga continues to support the Signature Collection offering in KwaZulu-Natal. The spread across developments is important. It demonstrates that the recovery was not dependent on 1 project only, but was supported by activity across our operating nodes and across all collections. From a pipeline perspective, the group remains well positioned with a build-to-sell pipeline of 26,334 apartments across Gauteng, KwaZulu-Natal and the Western Cape. Gauteng remains the largest contributor with a Balwin pipeline of 18,235 apartments and an estimated development horizon of around 10 years. This remains a substantial land bank and we will continue to manage it carefully through phasing, infrastructure planning, selective disposal where appropriate and complementary uses that improve the attractiveness of the relevant nodes. KwaZulu-Natal has a pipeline of 4,288 apartments and an estimated 7-year horizon. We remain constructive on the province, but disciplined in how we allocate capital and sequence development activity. The Western Cape pipeline is shorter at 3,811 apartments and an estimated 3-year horizon. Given the strength of demand in the province, we will remain attentive to selective opportunities, but only where land is appropriately zoned, serviced, priced and capable of meeting our return thresholds. Overall, the total development base compromises 41,226 apartments; of which 16,170 have been sold, 14,769 have been registered and 14,892 have already been recognized in revenue. A further 1,278 apartments were sold, but not yet recognized in revenue at year-end. This provides a strong platform, but we will continue to balance the pipeline against market absorption, construction capacity, infrastructure requirements and the cost of capital. Jonathan will now take us through the financial performance for the year.

Thank you, Steve, and good morning, everyone. As Steve has highlighted, the operational performance for the financial year reflects a cautious recovery in the residential property market. The comparative financial results, however, are somewhat distorted by the impact of land sale transactions recognized in both the current and the prior reporting periods. Excluding these nonrecurring items, the group delivered modest growth across most key financial metrics albeit from a relatively low base of the prior year. In summary, revenue increased by 21% to ZAR 2.7 billion supported by stronger apartment sales, encouraging growth in selling prices and continued momentum within Balwin Annuity. Gross profit margin decreased to 27% compared to the prior period 30%. As noted earlier, this was impacted by the land sale transactions recognized in both the current and prior reporting periods. When excluding these nonrecurring items, the group achieved a recurring gross profit margin of 30% reflecting modest improvement from the comparative margin of 29%. Operating expenses remained well controlled. The increase recorded during the year was largely attributable to higher sales related costs, which tracked the growth in revenue as well as increased operating costs within Balwin Annuity as the subsidiary continues to expand its operational footprint. Importantly, fixed costs were effectively managed and declined by 7% enabling the group to achieve positive operating leverage further down the income statement. Overall, the group reported a 9% increase in profit for the year to ZAR 254 million. Excluding the impact of the nonrecurring land sales, profit for the year increased by 36% on a like-for-like basis. This translates into a 5% increase in earnings per share and a 4% increase in headline earnings per share with HEPS reaching ZAR 0.4772 per share. Excluding the land sale transactions, EPS and HEPS improved by 40% and 41%, respectively. The group closed the period with a healthy cash balance of ZAR 208 million with the loan-to-value ratio improving to 38.1%, down from 40.4% at the prior year-end. Both metrics remain comfortably within the Board approved and lender covenant thresholds. Finally, net asset value per share increased by 7% year-on-year to ZAR 9.77 on an accounting basis. As highlighted in previous presentations, there remains a technical difference between the accounting calculation of net asset value per share and the calculation based on the total shares in issue per the JSE primarily relating to the BEE structure. I'll expand on this in more detail shortly. The group delivered a strong financial performance for the year underpinned by improved operational execution and continued demand across its developments. Revenue increased by 21% to ZAR 2.7 billion compared to the prior year reflecting higher sales activity and improved pricing. Gross profit amounted to ZAR 740 million. The gross profit margin eased to 27% from 30% in the prior year primarily due to the impact of nonrecurring land sales included in the current and comparative periods. Excluding these once-off transactions, underlying operational profitability showed marginal growth year-on-year. Operating expenses continue to be well controlled. The increase in costs during the period was mainly attributable to higher sales linked expenditure as well as increased operating costs within Balwin Annuity, consistent with the continued expansion of this growing business segment. Net finance costs for the period were ZAR 54 million, broadly in line with the prior year and largely associated with funding requirements within Balwin Annuity. As a result, the group reported profit before tax of ZAR 350 million and profit after tax of ZAR 254 million representing a 9% increase year-on-year. Importantly, when adjusting for the effect of the nonrecurring land sales, underlying net profit growth increased by 36%. Earnings per share and headline earnings per share increased by 5% and 4%, respectively, to ZAR 0.5236 and ZAR 0.4772 per share. On a recurring operational basis, EPS and HEPS showed strong growth of 40% and 41%, respectively. Overall, the result demonstrates a robust operational recovery and reflect disciplined execution across the group despite the impact of nonrecurring items on comparative margins and earnings growth. Group revenue increased to ZAR 2.7 billion underpinned by a strong recovery in apartment sales, which remained the primary contributor at ZAR 2.4 billion, up 22% year-on-year. Revenue recognition included 2,053 apartments reflecting 17% growth in volume with the balance of the revenue increase attributable to improved selling prices. One and 2-bedroom apartments continued to dominate demand contributing 76% of total revenue. Balwin Annuity delivered another solid performance with revenue increasing 25% to ZAR 219 million. The business maintained its contribution of 8% of total group revenue despite the stronger recovery in apartment sales. The Balwin Foundation received ZAR 1.2 million in external donations during the year while its primary funding continued to come from internal group contributions, which are eliminated on consolidation. During the year, the group disposed of a landholding in KwaZulu-Natal originally acquired for development purposes. Ongoing infrastructure constraints and compromised site access impacted the long-term viability of the development leading to the strategic decision to exit the investment. The land was disposed off for ZAR 37 million resulting in a loss of ZAR 55 million. Importantly, no other land holdings within the group's pipeline are impacted by similar constraints. The group remains committed to its strategy of unlocking value through the sale of land parcels within large-scale developments to partners providing complementary amenities such as schools, fuel stations and commercial facilities. These transactions are expected to be accretive to return on capital and while no such transactions were concluded during the year, a number of opportunities remain under discussion. In analyzing regional revenue trends from apartment sales, the Western Cape reclaimed its position as the group's leading nodal contributor accounting for 54% of total apartment sales revenue and delivering impressive growth of 47% year-on-year. Gauteng contributed 39% of revenue, consistent with the prior year while the balance of 7% was generated in KwaZulu-Natal, which achieved revenue growth of 6% year-on-year. We have seen a healthy arm wrestle between the Western Cape and Gauteng in recent years and we remain optimistic about the prospects in both regions. As Steve highlighted earlier, Gauteng's development pipeline remains strong comprising approximately 18,000 apartments under the build-for-sale model with a significant concentration within Mooikloof Smart City, the government approved strategic integrated project. This pipeline will be further strengthened by an additional development within Waterfall City, which is expected to come online in the upcoming financial year. The Western Cape pipeline currently just under 4,000 opportunities is being actively reviewed to ensure the group can meet the robust demand evident in the region. Management continues to explore additional opportunity to expand development capacity supported by the strong performance of the portfolio with the Top 5 performing developments all located in the Western Cape in the current year. Analyzing apartment sales revenue by collection. The Classic Collection further strengthened its dominance within the portfolio contributing 78% of total revenue and delivering strong growth of 39% year-on-year largely driven by significant exposure to the Western Cape market. The Green Collection accounted for 17% of revenue with revenue declining by 7% compared to the prior year. The Signature Collection contributed the remaining 5% of revenue and consistent with the group's strategy continues to represent the smallest segment within the portfolio. Looking at average selling prices and focusing on the Classic and Green Collections. Within the Classic Collection, average selling prices increased by between 4% and 5% across all apartment types supported primarily by continued strength in the Western Cape market. In line with improving residential market conditions, the group strategically reduced sales incentives that had previously been implemented to support demand resulting in a corresponding uplift in the achieved selling prices. The Green Collection also delivered solid growth relative to prior year with capital appreciation ranging between 4% to 9%, comfortably exceeding inflation-linked returns. This performance was driven largely by strong pricing growth in 1- and 3-bedroom apartments. Balwin Annuity delivered another strong performance during the year with revenue increasing 25% to ZAR 219 million, maintaining its contribution to group revenue at 8%. The supply of electronic communication services remained the largest contributor to Annuity revenue accounting for 40% of the total and continuing to provide a stable recurring income base. Revenue from this segment increased 15% compared to the prior year. Rental income grew strongly as expected, increasing 51% year-on-year to contribute 24% of the total Annuity revenue. This growth was driven by the completion of development at the Eastlake, which expanded the group's existing rental portfolio alongside Greenpark. Additional revenue streams were generated from the maintenance business, digital advertising, cellular tower infrastructure, paddle facilities as well as solar energy and bond origination activities. Raaziq will provide further insight into the sectional performance of Balwin Annuity in the presentation that follows. The group's gross margin decreased slightly to 27% compared to 30% in the prior year. As mentioned earlier, this was primarily due to the financial impact of the land sales recorded in both the current and comparative periods. Excluding these nonrecurring transactions, underlying gross margin performance improved marginally to 30%, up from 29% in the prior year. Gross profit from apartment sales remained stable at 24% generating ZAR 585 million in profit. The Western Cape continued to deliver strong margins while margin pressure persisted in Gauteng and KwaZulu-Natal. The group's medium-term objective remains to restore apartment margins to 30% with a broader macroeconomic recovery in Gauteng being a key enabler of this target. Supported by mitigation initiatives, including block reconfiguration and redesign to improve cost efficiencies, the ongoing benefits of cost containment measures and a gradual improvement in trading conditions, management remains confident in its ability to achieve this objective. Balwin Annuity recorded gross profit growth of 25% to ZAR 214 million. Given the nature of its administrative cost structure, most expenses are recognized below the gross profit line providing additional gross margin support to the group. At a company level, total operating costs increased modestly by 4% to ZAR 247 million. Fixed costs declined by 7% reflecting the continued cost discipline maintained across the business. In line with the revenue growth, the company recorded higher sales related costs and provided for performance-linked remuneration. Encouragingly, the operating cost to revenue ratio improved to 10.3% compared to 12.1% in the prior year. Operating costs within the Annuity businesses increased by 26% to ZAR 144 million reflecting the higher levels of operational activity across the portfolio. Combined group operating costs amounted to ZAR 391 million with the group operating expense to revenue ratio improving to 14.5%. This reflects the continued strong cost management discipline with ongoing oversight and containment of overhead costs remaining a key management focus. The group recorded a profit after tax of ZAR 254 million, an increase of 9% compared to prior year. As discussed at length earlier in the presentation, the nonrecurring transactions that fall outside the group's core operating activities negatively impacted the results and excluding these matters, the group profit increased 36% year-on-year. This translates to a 5% and a 4% increase in EPS and HEPS, respectively, with headline earnings of ZAR 0.4772 per share. Again excluding the nonroutine transactions, earnings per share and headline earnings per share increased by 40% and 41%, respectively, with recurring HEPS measuring ZAR 0.5644 per share. After due consideration of current trading conditions, the Board has elected not to declare a dividend with the primary focus on capital allocation being emphasized on debt exposure. Dividend considerations will be revisited in the upcoming financial year. Turning to the balance sheet. Noncurrent assets amounted to just under ZAR 1 billion primarily comprising property, plant and equipment together with investment property. Current assets for the year totaled ZAR 7.4 billion, of which the largest contributors were developments under construction of ZAR 6.9 billion, trade receivables of ZAR 340 million and cash of ZAR 209 million. Equity increased to ZAR 4.6 billion translating to a net asset value per share of ZAR 9.77 on an accounting basis. Adjusted for the total shares in issue per the JSE, this equates to ZAR 8.81 reflecting the technical accounting considerations for the BEE shares. Total liabilities stood at ZAR 3.9 billion at year-end with development loans and facilities accounting for ZAR 3.2 billion across both the current and noncurrent portions. The remaining liabilities primarily comprise of deferred tax as well as trade payables. Property, plant and equipment increased by ZAR 30 million in the current year to ZAR 452 million driven primarily by continued investment in solar assets and fiber infrastructure within Balwin Annuity. Investment property increased to ZAR 507 million as the group continued to cautiously advance its rental strategy marked by the completion of its first purpose-built rental development, the Eastlake situated in Linbro Park. As Steve highlighted earlier and as Raaziq will expand on shortly, this proof-of-concept rental model has delivered encouraging results achieving a 99% occupancy rate at year-end. Following its completion, the Eastlake was reclassified from investment property under development to completed investment property and remeasured at fair value. This resulted in an upward fair value adjustment of ZAR 35 million bringing the carrying value to ZAR 163 million. At year-end, the investment property portfolio comprised 215 rental apartments at Greenpark, the Commercial Lifestyle Center at Thaba Eco Village, the hotel located at The Blyde as well as the Eastlake development discussed earlier. All investment properties were assessed for fair value at year-end with no further revaluation adjustments required for the other items of investment property. The group has also commenced initial development activities on 4 additional rental projects with first handovers anticipated in the near term. Subsequent to year-end, the group concluded an agreement for the disposal of the Greenpark rental apartment portfolio. The transaction includes a limited triple sale of selected apartments together with an investor sale of approximately 200 apartments. These apartments were not in line with the group's long-term rental strategy, which is focused on bespoke purpose-built rental developments that enhance operational control and improve cost efficiencies. A total of 214 of the 215 apartments have been sold for gross proceeds of ZAR 172 million. The capital realized will be applied towards reducing the group's debt exposure while retaining a portion to support future equity funding requirements for the continued expansion of the rental business. Developments under construction; which include land, infrastructure, development rights and construction costs; increased by just short of ZAR 190 million to ZAR 6.9 billion. Of the developments under construction, 59% represents construction costs, 6% pertains to the development rights within Waterfall City and 35% is land and external infrastructure; the mix being broadly consistent with the prior year. The group continues to manage its development pipeline with a disciplined and measured approach. In line with the current strategic focus on existing projects, no new land was registered during the year. As discussed earlier and highlighted in detail by Steve, the group remains attentive to opportunities within the Western Cape to supplement the gradually diminishing pipeline in that region particularly given the sustained demand being experienced. The increase in developments under construction during the year was primarily concentrated within the Tshwane node driven by significant infrastructure investment relating to the next phase of the Mooikloof Smart City development where approximately ZAR 120 million was invested. Engagement with government stakeholders remains ongoing as the group continues to work collaboratively towards securing the required public infrastructure commitments necessary to support this catalytic development node. During the year, the group achieved a release of working capital within the Western Cape and KwaZulu-Natal nodes while activity in Johannesburg remained broadly neutral with investment in developments under construction closely aligned with the sales achieved during the year. The group closed the financial year with cash reserves of ZAR 209 million, remaining comfortably above funding covenants and Board approved thresholds. A more detailed analysis of the movement in cash will be provided later in the discussion on the cash flow statement. From a treasury perspective, the Treasury Committee continued to provide oversight across key areas including cash management, debt monitoring, forecasting and covenant compliance throughout the year. Looking ahead, the group will maintain a disciplined approach to balancing the pace of construction with sales activity, which remains a critical driver of effective cash and working capital management. Reducing debt remains a key medium-term priority for the group as part of its continued focus on cash discipline and capital optimization. Development loans and facilities decreased marginally to ZAR 3.2 billion during the year contributing to an improvement in the loan-to-value ratio to 38.1% compared to just above 40% in the prior year. Stakeholders are reminded that in terms of the LTV calculation, only the investment property portfolio representing approximately 6% of the group's total asset base is subject to fair value adjustments. Accordingly, 94% of the asset base continues to be measured at cost without fair value revaluations. The group remains focused on the responsible yet proactive repayment of land and infrastructure debt, which represents its longer-term debt exposure while balancing this approach with the debt capital required to support execution of the development pipeline. During the year, the group accessed an additional ZAR 100 million under its IFC facility to fund a significant infrastructure investment within Tshwane east with the remaining funding requirements absorbed through equity. In addition, the group raised ZAR 19 million of debt funding on the completion of the Eastlake, the first bespoke rental development. As the rental portfolio expands cautiously over the coming years, the associated debt funding is expected to increase accordingly. This exposure will remain ring-fenced within Balwin rentals and will be funded responsibly with careful consideration given the appropriate loan-to-value and interest cover ratios. Importantly, all lender covenants were fully complied with at year-end. Management has maintained a strong focus on cash management and preservation throughout the year delivering positive results. Cash generated from operations improved by more than ZAR 400 million year-on-year resulting in an operational cash generation of just under ZAR 200 million for the year. This performance was driven by improved profitability supported by disciplined working capital management. The strengthened cash position enabled the group to invest ZAR 140 million in capital assets primarily towards the completion of 126 apartments at the Eastlake as well as the ongoing investment in solar and fiber infrastructure within the Annuity group. Additionally, the group reduced its net debt position by over ZAR 100 million during the year contributing to the improvement in the loan-to-value ratios just discussed. As previously communicated, debt reduction remains a key medium-term priority for the Board as part of our continued focus on cash management and capital structure optimization. Balwin enters the 2027 financial year in a stronger operational and financial position than a year ago with a solid platform set to support future growth. In closing, I'd like to extend my sincere appreciation to the Board and the Balwin executive team for their continued guidance and support as well as to the finance department for their commitment to excellence in financial reporting. Thank you. I'll now hand over to Raaziq, who will take us through the operations and results of Balwin Annuity.

Thank you, Jonathan. The Annuity division continued to make meaningful progress during the year delivering strong recurring revenue growth, expanding its asset base and further embedding long-term customer relationships across the Balwin ecosystem. The division's strategy remains focused on building scalable, defensive and recurring income streams that complement the group's core residential development activities. I will now take you through the results of the Balwin Annuity division for the full year ended 28 Feb. 2026, covering the portfolio overview, the consolidated income statement and each of the 6 operating clusters in turn. The division delivered another year of strong growth with revenue increasing to ZAR 228.9 million and operating profit rising to ZAR 112.3 million supported by continued expansion across the ICT, rental, customer services and real estate platforms. Importantly, the division now manages ZAR 1.2 billion in assets providing a growing base of recurring and asset-backed income streams. On sustainability and client metrics, approximately 4,500 tons of carbon dioxide emissions were prevented through Balwin Energy initiatives. 11,740 clients are active on the Balwin Fiber network. And clients are expected to realize approximately ZAR 126 million in savings over a 20-year period based on mortgage bonds approved through Balwin Mortgages during the year. Revenue increased from ZAR 174.9 million to ZAR 228.9 million, a growth of 30.8% with 5 of 6 clusters contributing positively. Gross profit was ZAR 222.1 million at a margin of 97%. Operating expenses of ZAR 146.1 million resulted in operating profit of ZAR 112.3 million, up 16.1% on the prior year. After finance costs of ZAR 46.7 million and taxation of ZAR 19.5 million, net profit after tax was ZAR 46.1 million compared to ZAR 43.2 million in the prior year. While certain divisions included nonrecurring accounting adjustments, the underlying operational performance across the Annuity platform continued to strengthen during the year. Balwin rentals benefited from the Eastlake fair value adjustment uplift. The real estate cluster comprising Balwin's head office, lifestyle operations and the maintenance business included fair value gains in the prior year, which did not repeat in the current year and other businesses were impacted by prudent write-off relating to education operations. Importantly, on an adjusted basis, each of these businesses improved operationally year-on-year. In relation to Balwin ICT: effective 1 March 2025, Balwin Connect and Balwin Technik were merged with Balwin Fiber to form Balwin Information and Communication Technology Proprietary Limited with Connect and Technik operating as divisions within that entity. Revenue for the year was ZAR 89.1 million, up from ZAR 77.7 million, an increase of 14.7%. Gross profit was ZAR 88.9 million. Operating profit increased to ZAR 33.6 million from ZAR 21.2 million demonstrating the operating leverage inherent in the platform as active client growth continues to scale ahead of fixed infrastructure costs. Net profit after tax was ZAR 18.4 million compared to ZAR 10.6 million representing growth of 72.8%. The network covered 16,507 homes passed at year-end with 11,740 active clients at a 70% uptake rate across our estates and an average rate of ZAR 467 per unit per month. Balwin Connect had 2,778 active clients and Balwin Technik was operational across 19 developments. As new homes are added through the development pipeline, the network's fixed cost base supports incremental recurring revenue with limited additional cost. The business continues to benefit from a highly captive customer base within Balwin developments supporting strong retention and long-term recurring revenue visibility. In relation to Balwin Real Estate: Balwin Lifestyle Operations and Balwin Maintenance were merged with Balwin Head Office to form Balwin Real Estate Proprietary Limited effective 1 March 2025. Balwin Hotel is a separate legal entity included within this cluster. Revenue for the year was ZAR 51.5 million, up from ZAR 37.9 million, an increase of 35.9%. Operating profit was ZAR 25 million compared to ZAR 39.3 million in the prior year. Net profit after tax was ZAR 3.2 million against ZAR 15.9 million in the prior year. The prior year included ZAR 13.3 million in fair value gains on the head office building and ZAR 5.4 million on The Blyde Hotel. Excluding those adjustments, the prior year net profit after tax was ZAR 1.2 million. The current year result of ZAR 3.2 million, therefore, represents improvement on the adjusted prior year base. The underlying quality of the portfolio remains strong with high occupancy levels, premium green-rated assets and increasing lifestyle utilization supporting long-term value creation. Both the head office and Thaba lifestyle center were 100% tenanted throughout the year and retained a 6-star Green Building rating. Thaba has 414 external members and maintenance services now cover 15 sites. The Blyde Hotel improved its average daily room rate by 10% year-on-year. New lifestyle centers are currently being planned at Izinga, Shongweni, De Buurt and Mooikloof, The Balwin Rentals portfolio comprises of Eastlake at 154 units, which reached practical completion in November 2025 and Greenpark at 215 units giving us 369 units in total. The portfolio reached an important inflection point during the year as Eastlake achieved practical completion and the rental platform moved substantially towards stabilization. Revenue for the year was ZAR 32.4 million, up from ZAR 18.1 million, an increase of 79.5%. The reported NPAT of ZAR 28.2 million includes a ZAR 35 million upward fair value adjustment on Eastlake, which was independently revalued to ZAR 163 million at year-end. Excluding the tax-effected adjustment, the underlying NPAT was ZAR 685,000 compared to a loss of ZAR 2.5 million in the prior year, a step forward that reflects genuine operational progress as the portfolio reaches capacity. Average occupancy across the portfolio for the year was 96.9% ranging between 95.5% and 99.6%, demonstrating the strength of demand for Balwin Rentals product offering. The Eastlake revaluation establishes a fair value of ZAR 163 million for that asset providing a material addition to the clusters balance sheet. Subsequent to year-end, the Greenpark portfolio comprising of 214 apartments was sold for ZAR 171.8 million. The disposal represents a successful capital recycling initiative, strengthening liquidity and enabling reinvestment into future rental opportunities. The group has commenced construction on 2 new rental developments namely the Klulee in Linbro Park, Johannesburg and the Kloof in Mooikloof Smart City, Pretoria East. Effective 1 March 2025, Balwin Insurance was merged with Balwin Mortgages to form Balwin Customer Services Proprietary Limited. Balwin Realty operates as a separate legal entity within this cluster providing resale services to Balwin residents. Revenue for the year was ZAR 19.3 million, up from ZAR 15.4 million, an increase of 25.5%. Gross profit was ZAR 16.6 million and operating profit was ZAR 7.3 million compared to ZAR 4.7 million in the prior year. Net profit after tax was ZAR 5.3 million, up from ZAR 3.5 million, an increase of 50.1%. The division carries no finance costs in either year reflecting the capital-light nature of the bond origination and insurance facilitation model. The business remains highly cash generative and capital-light while simultaneously supporting apartment sales conversion and customer affordability. During the year, 1,961 home loans were secured, qualifying clients received green bond concessions of between 0.25% and 0.75% and estimated client savings over a 20-year mortgage period based on bonds approved during the year amount to an approximate ZAR 126 million. Balwin Green Living comprises solar infrastructure assets and metering services with metering having been launched during the current financial year as a second annuity revenue stream. Revenue for the year was ZAR 21.8 million, down from ZAR 23.4 million. This contraction resulted from a tariff implementation matter at 1 development, which management is in the process of resolving. Once resolved, this is expected to support improved revenue performance in the current financial year. Operating profit was ZAR 3.9 million compared to ZAR 8.6 million in the prior year. After finance costs of ZAR 7.9 million on the solar infrastructure debt and a tax credit of ZAR 837,000, the division reported a net loss after tax of ZAR 3.1 million against a profit of ZAR 4.4 million previous year. Current earnings continue to reflect the upfront investment phase associated with expanding the solar asset base and launching the metering platform business, both of which are expected to support growing recurring income over time. The division is now active across 13 developments delivering a minimum 10% electricity discount to clients. During the year, approximately 4,500 tons of carbon dioxide emissions were prevented across the Balwin Group. The launch of metering services as a second recurring revenue stream to the business, which is expected to contribute to improved profitability as adoption scales. The other annuity businesses segment comprises Balwin Padel Enterprises, Balwin Padel eCommerce, Balwin Signage and Towers, Lease Logic, Balwin Lifestyle Propco and Balwin Education Operations Proprietary Limited. Several of these businesses remain in early stage of development and are beginning to demonstrate encouraging commercial traction. Revenue for the year was ZAR 14.9 million, up from ZAR 2.5 million in the prior year. Gross profit was ZAR 10.9 million. The segment reported a net loss after tax of ZAR 5.9 million against net profit of ZAR 11.2 million in the prior year. Both years contained material once-off items that affect comparability. In financial year 2025, ZAR 17.4 million in profit on the sale of land at Thaba Fuel station and Ballito Beach Club was recognized in other income. In financial year 2026, there was a write-off of investment property amounting to ZAR 5.7 million relating to education operations following the group's decision to no longer pursue the school project. On an adjusted basis, the segment demonstrated meaningful year-on-year improvement. The Signage and Towers business achieved a ZAR 1 million net profit after tax. The Whisken Signage Board was fully tenanted throughout the year contributing meaningfully to revenue. Balwin Padel operations performed strongly at Thaba and Mooikloof and Munyaka Padel, the group's first indoor facility commenced operations on 1 September 2025. Lease Logic successfully launched its rental management platform during this period. In summary, the Annuity division delivered another year of strong operational progress with revenue growth of 30.8%, expanding recurring income streams and continued growth in assets under management to ZAR 1.2 billion. The division is increasingly demonstrating the value of Balwin's integrated residential ecosystem strategy, leveraging the group's development platform to build scalable, defensive and recurring earnings streams across ICT, rentals, solar infrastructure, customer services and lifestyle infrastructure. Importantly, a number of businesses that required upfront investments are now approaching greater scale and operational maturity, positioning the division for improved earnings quality and cash generation over the medium term. We remain confident in the long-term growth potential of the Annuity platform and its ability to become an increasingly meaningful contributor to group earnings and shareholder value over time. Thank you. I will now hand back to Steve.

Thank you, Raaziq. We now move on to sustainability. Sustainability is not a separate work stream for Balwin. It is embedded in how we design, build, finance and operate our developments and it remains central to the value proposition we offer to homeowners. Balwin's commitment to reducing environmental impact continues to be driven through innovation in design and building techniques. We are the first African company to have both a science-based target and a net zero commitment approved by the International Science Based Targets Initiative. All new developments continue to target EDGE Advanced ratings and at year-end we have 27,802 preliminary EDGE Ad certifications and 11,386 Post Construction certificates. This matters because it translates into measurable benefits. Our lifestyle centers continue to support the sustainability profile of the portfolio with 11 lifestyle centers having achieved a 6-star Green Star rating from the Green Building Council of South Africa, including our new head office. During the year, we achieved a 34% reduction in Scope 1 and Scope 2 carbon emissions. We also secured 1,812 green bonds for clients providing total savings of ZAR 126 million over a 20-year mortgage period. For homeowners, the benefit is not theoretical. EDGE certification, green bond concessions, solar infrastructure and lower utility consumption; all contribute to the long-term affordability of owning a Balwin apartment. That is particularly relevant in a market where interest rates have eased from their peaks, but borrowing costs remain elevated and affordability is still central to buyer behavior. In conclusion, despite the current cycle of global and domestic economic uncertainty, I believe that our core business remains strong. Demand for quality affordable lifestyle orientated residential apartments remains evident in our sales performance and in the level of apartments presold for future periods. The operating environment has improved materially from the prior year. However, renewed inflation risks are a reminder that affordability can improve and then tighten again very quickly. For that reason, our focus remains practical; protect cash, reduce debt exposure over time, contain operating and development costs and allocate capital to the nodes and products where demand is strongest and most sustainable. Looking ahead, our focus on delivering high quality, affordable and lifestyle-orientated residential developments remains closely aligned with demand fundamentals in the South African housing market. Balwin is in a healthy forward sold position with 2,304 apartments forward sold to May 2026. That gives us resilience against uncertain market conditions and positions the business to benefit if interest rates ease further and affordability improves. At the same time, we remain conscious that the current environment can shift quickly so we will continue to manage sales, construction and cash flow in tandem. We will maintain our focus on core operations by leveraging our existing land bank and development pipeline while remaining attentive to selective new opportunities in the Western Cape. Operational and development cost containment remains a key priority both to drive margin growth and to enhance return on invested capital. Capital structure remains a key focus area. Our strategic intent is to reduce debt exposure over time while still maintaining an optimal pipeline across our operating nodes. That balance is important. We do not want to underinvest into demand, but we also do not want to carry unnecessary exposure in a high cost funding environment. The build-to-sell pipeline remains substantial at approximately 26,000 apartments. In addition, around 7,700 apartments have been identified for the build-to-rent portfolio. That opportunity will be introduced cautiously and in a measured manner aligned to demand, funding, returns and the broader annuity strategy. In closing, ladies and gentlemen, Balwin has come through a difficult cycle with a strong operational base, a clearer focus on cost and capital discipline and a product offering that remains highly relevant to the market. We are encouraged by the recovery, but we are not complacent. Our priority now is to convert the stronger sales environment into sustainable earnings, improved margins and stronger returns on invested capital. This brings our presentation to a conclusion. Should you have any questions on the presentation or require more information on the business, please reach out to us at [email protected]. We will also respond to any questions that were sent on this platform. Thank you for dialing in and I look forward to engaging with you soon.