Balwin finds new ways to diversify income
Sectional title developer to launch a rental business to boost cash generation
Listed sectional title developer and seller Balwin Properties is planning to launch a rental business, which it will list in the next two years. The company, which saw its revenue rise 33% in the six months to August according to results released on Monday, is trying to expand its source of income so it can begin to pay dividends again. “We will announce an exciting partnership which will enable us to launch a rental business in the next few weeks. We believe that while build-to-sell has been our main business since we listed three years ago, we need new ways of generating income. One of these is a rental business and the other is our internet fibre infrastructure and renewable solar energy business,” financial director Jonathan Weltman said. He said that by having both a build-to-sell and a rental business, Balwin could also manage interest rates changes and protect its earnings. “If interest rates enter a steep rising cycle, demand for rental property will also rise. If interest r...