Trading Statement BALWIN PROPERTIES LIMITED (Incorporated in the Republic of South Africa) (Registration number 2003/028851/06) Share code: BWN ISIN: ZAE000209532 ("Balwin" or "the Company") TRADING STATEMENT Shareholders are advised that headline earnings per share (“HEPS”) and earnings per share (“EPS”) for the 6 months ended 31 August 2016 are expected to be below the prior year comparative figures within the ranges outlined in the table below: Measure Decrease relative to Anticipated cents per Cents per share in comparative period share comparative period 31 Aug 2015 31 Aug 2016 31 Aug 2015 HEPS (33%) – (38%) 36 – 39 58 EPS (33%) – (38%) 36 – 39 58 The decrease is as a result of: - a 21% - 28% reduction in profit after taxation, driven primarily as a result of delays in the registration of transfer of 277 units that had been sold at 31 August 2016 but for which transfer had not been registered at the deeds office (unit purchasers have paid guarantees in full, have already moved in to the units sold and are paying occupational rent in anticipation of the registration of transfer thereof). Balwin anticipates that these transfers will be registered during the second half of the financial year and will form part of revenue for the financial year ended 28 February 2017. As per Balwin’s revenue recognition policy, the Company only recognises revenue on the registration of transfer in the deeds office and not on sale; and - due to Balwin’s weighted average number of ordinary shares in issue increasing from 400,000,000 during the period ended 31 August 2015, to 469,662,237 during the period ended 31 August 2016. This increase is as a result of the issue of additional ordinary shares on the listing of Balwin on 15 October 2015. Steve Brookes, CEO of Balwin commented: “We successfully launched several new developments in close succession and the lower profit achieved during the period is purely a timing issue linked to the fact that first phases of new developments typically take longer to register than subsequent phases with the deed’s office. The backlog of registrations, which impacted this period’s results, is being processed and going forward, new development launches will be more staggered to reduce such impact. “We are confident that this revenue will be realised for the full financial year and although operating and economic conditions have been challenging, demand has been robust with pre- sales at our recently launched developments progressing well.” The financial results on which this trading announcement is based have not been reviewed or reported on by Balwin`s external auditors. Balwin`s results for the six months ended 31 August 2016 are scheduled to be published on or about 15 November 2016. Bedfordview 21 September 2016 Corporate Advisor and Sponsor: Investec Bank Limited Date: 21/09/2016 11:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.