Generates strong organic growth from Memorial Parks
Salient features:
- Bankenveld District City (“BDC”): ground broken on Phase 1 bulk and link infrastructure for the Group’s flagship 20,000-opportunity integrated-housing development
- Significant progress on the trade-out of non-core projects: 70% of FY26 units transferred originated from non-core developments
- Strong organic growth from Memorial Parks: revenue up 26% to R86 million (2025: R69 million); Rustenburg Memorial Park successfully launched
- Gross margin of 27.20% (2025: 29.43%): above the 20%–25% strategic target band
- Net debt to equity at 0.74 (2025: 0.65): comfortably within the 1.5× covenant
- Final dividend of 8.63703 cents per share (2025: 8.63703 cents per share) — maintained at the prior-year level, representing 5.54% of HEPS, above the 5% policy minimum
- Net asset value (“NAV”) increased by 10.77% to R16.46 per share (2025: R14.86 per share)
- Headline earnings per share (“HEPS”) decreased to 156.76 cents per share (2025: 171.36 cents per share)
- Combined development pipeline of R31.8 billion (R29.4 billion residential opportunities; R2.4 billion Memorial Parks) underpins long-term growth
Johannesburg, 18 May 2026 – JSE-listed Calgro M3, the property and property-related investment company specialising in the development of Integrated Residential Housing Developments and the development and management of Memorial Parks, today announced full-year results for the year ended 28 February 2026.
Calgro M3’s CEO, Ben Pierre Malherbe, said, “The 2026 financial year saw the Group implement refined strategic priorities centered on three key pillars aimed at driving long-term growth, strengthening liquidity, and enhancing shareholder value”.
He went on to explain that these pillars focus on i) the disposal of non-core assets, ii) the accelerated completion of non-core projects while expanding the Memorial Park footprints, iii) the reduction of net debt in the medium term, and iv) the development of a sustainable talent pipeline. In conjunction with the start of Phase 1 infrastructure at BDC, the Group is focused on enabling sustainable long-term growth.
“These strategic priorities informed both performance and capital allocation decisions during the year, with the Group directing its sales and construction efforts towards the non-core project pipeline, comprising developments outside our large-scale integrated core portfolio. This targeted approach supports the phased completion and closeout of non-core projects, enabling the release of financial, operational, and management capacity for redeployment into core developments,” said Malherbe.
The combined pipeline remains robust, comprising approximately 31 874 residential opportunities and 114 827 burial opportunities. This pipeline reflects projects aligned with the Group’s strategic focus and long-term growth objectives, with a combined total value of R31.8 billion.
Operational overview
The Residential Property Development segment remains the largest contributor to Group performance.
The segment has started the BDC integrated housing project, a landmark development that will grow into the anchor project within the development business. This project broke ground during the year with the rollout of bulk and link infrastructure, including the construction of key arterial and connector roads within the precinct.
Malherbe went on to add that this project is expected to deliver a minimum of 20 000 housing opportunities across a range of affordable housing typologies, strategically located within walking distance of the Marlboro Gautrain Station, in close proximity to job opportunities in the adjacent Linbro Park industrial area, as well as Sandton and the Waterfall City Central Business District.
“The initial phase of infrastructure delivery, encompassing both bulk and link and internal infrastructure, is expected to yield approximately 6 000 serviced opportunities over the next five years, to be rolled out in phases,” said Malherbe.
Revenue for the segment increased marginally to R806 million (2025: R800 million), while the gross profit margin declined to 24% (2025: 27%), reflecting margin pressures experienced during the year while trading out non-core projects. Bulk and link infrastructure continued to be installed within Fleurhof, Belhar and Jabulani, collectively supplying 968 serviced opportunities into the pipeline for development in the next financial year.
The acquisition of additional land parcels remains a key strategic priority for the business, especially land parcels near existing integrated developments, enabling the Group to leverage ongoing bulk and link infrastructure investments and achieve operational efficiencies. In addition, the identification and acquisition of new land parcels in the Western Cape remains a focus, supporting continued geographic diversification of the development pipeline.
During the year, the Memorial Parks business successfully launched the Rustenburg Memorial Park, expanding its footprint into the North West province. “The new park delivered strong performance, with burial rates and sales volumes exceeding those of comparable parks at a similar stage of development,” Malherbe added.
Revenue increased to R86 million (2025: R68 million) through both increasing market share and the completion of layby sales in the year.
The business maintains a semi-fixed cost structure, and improvements in sales volumes positively impacted the gross profit margin of 54.90% (2025: 50.90%). One strategic objective for this business remains maintaining cash collections to a level that fully covers Group overheads. This will allow Calgro M3 to commence integrated developments of scale. The long-term objective aims to generate a Return on Invested Capital in line with the Group targets.
Layby cash receipts grew by 19% to R30.42 million, underscoring the effectiveness of the strategy to reduce the barrier to entry. The successful adoption of the layby offering across all the parks indicates that consumer demand remains strong, and increased market share can be leveraged by lowering the barrier to entry. The layby sales increased by 63% to R45 million in the current year, with the active layby book ending at R59.7 million. This is a 29.7% increase year-on-year, with the cancellation/default rate on laybys remaining within 5% of the total sign-up value.
Prospects
“Looking ahead, the Group will continue to execute its strategic pillars, with a clear focus on unlocking value and strengthening long-term sustainability. Priority will be given to disposing of non-core assets, accelerating the completion of remaining non-core projects, and expanding the Memorial Parks footprint to boost recurring cash flows, whilst continuing to deliver serviced opportunities from the core pipeline,” said Malherbe
Although net debt is expected to increase in the short term to support ongoing development and infrastructure investment, the long-term objective remains to reduce debt through balance sheet optimisation and asset realisation.
The continued rollout of the BDC project marks a significant step in redefining Calgro M3’s integrated housing delivery model, providing a scalable platform for phased, demand-led development. At the same time, active management of concentration risk through diversification across multiple projects ensures balanced production across the core project portfolio.
Malherbe concluded that Calgro M3 enters FY2027 with a clear strategy, a R31.8 billion combined development pipeline, the bulk and link infrastructure at Bankenveld District City under way, and a maintained dividend — supported by a balance sheet deliberately positioned to deliver the next phase of integrated-housing growth.
