Bankenveld District City advances, non-core asset disposals continue, and
Memorial Parks continues to deliver a resilient performance
Salient features:
- 1 724 serviced residential opportunities
- 1 418 residential opportunities under construction and/or held in stock
- Non-core project completions and sale of non-core assets progressing to plan
- Group revenue increased by 1.22% to R465 million (August 2025: R460 million)
- Gross profit margin sustained at 29.46% (2025: 29.43%) – above the 20%-25% strategic target band
- Net asset value (“NAV”) increased by 4.49% to R17.21 per share (February 2026: R16.47 per share)
- Headline earnings per share (“HEPS”) decreased by 4.67% to 78.99 cents per share (August 2025: 82.86 cents per share)
- No interim dividend declared for the period ended 31 August 2026 (2025: Nil)
- Strong organic growth from Memorial Parks: revenue up 20,04% to R47.81 million (August 2025: R39.83 million) and cash collections exceeding R60 million
Johannesburg, 19 October 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 interim results for the period ended
31 August 2026.
Calgro M3’s CEO, Ben Pierre Malherbe, said, “During the six months, we actively continued to execute the board-approved strategy, further progressing the sale of non-core assets, progressing construction and continuing to trade out of non-core projects. We also ensured that the Group’s core projects remain appropriately serviced and ready for implementation”.
He added that disposing of non-core assets remains a key strategic priority for the Group. “Given the size, developmental stage and nature of the non-core assets, the disposal programme is targeted for completion within the next five years.”
Progress has been made on:
- Cornubia: The Group has accepted an offer to purchase. The buyer is within the due diligence period, after which the sale will become unconditional and will be recognised in the Group’s accounting records.
- Vredehoek: A memorandum of understanding has been received. Finalisation of the due diligence process is expected in the latter half of the financial year. This is a shovel-ready project, with all approvals obtained.
- Other non-core projects: Three land portions are under investigation/application for burial opportunities.
Operational overview
The Residential Property Development segment remains a significant contributor to the Group, accounting for 89.73% of Group revenue. During the six months under review, the segment generated revenue of R417.87 million (August 2025: R420.20 million). Gross profit margin was 26.56% (August 2025: 26.25%), remaining above the Group’s target range of 20% to 25% due to the typology mix and historical land costs.
The segment delivered a consistent performance in a challenging operating environment. Infrastructure construction continued at an appropriate level, ensuring projects remain appropriately serviced and positioned for delivery once conditions normalise.
“The period saw continued focus on sales-led construction, with the Group favouring guaranteed off-take agreements before construction activities begin. We currently hold in excess of 1 418 opportunities under construction and/or stock on hand, of which approximately 55% has been sold to rental investors through guaranteed off-take agreements,” Malherbe explained.
The Bankenveld District City (“BDC”) project remains on track for completion of the first phase of bulk and link infrastructure in Q1 of the financial year 2028. Internal infrastructure will commence once bulk and link infrastructure is completed, in line with the development framework and timelines.
Diversification in the products offered to the affordable market included the successful roll-out of a mix of bachelor, one-bedroom and two-bedroom units at Fleurhof, which has attracted strong demand and interest, with the selling prices starting at R399 000. Construction of a new product in South Hills is underway and is anticipated to be completed in the latter half of the current year. Bulk and link infrastructure continued to be installed at Fleurhof and Jabulani, providing the Group with 5 100 opportunities in the pipeline for development to be rolled out in line with sales demand from these two projects.
The Memorial Parks segment delivered another period of growth in profitability, revenue and cash collections. Consistent with prior guidance, the segment’s strategic focus remains sustainable growth through footprint expansion via new parks, and growth in annuity income through bolstering the lay-by book.
“The segment has successfully matured into a sustainable business unit and a growing contributor to the Group,” added Malherbe.
In the reporting period, revenue increased by 20.04% to R47.81 million (August 2025: R39.83 million), with the gross profit margin remaining strong at 54.78% (August 2025: 50.39%). This increase was a result of volume growth, with grave sales up 16.21% and burials up 19.19%. Revenue growth was positively impacted by completed lay-by sales, which constituted 26.20% of segment revenue. Total cash collections increased by 17.81% to R60.83 million (August 2025: R51.63 million).
Prospects
“Looking ahead, the Group expects the operating environment to remain constrained, with end-user demand and the pace of recovery in the affordable housing market continuing to be affected by broader macroeconomic and political headwinds. The upcoming municipal elections and associated local government budget uncertainty are expected to add further complexity to approval and service delivery timelines in the near term.”
The Group’s sufficient serviced opportunities on hand mitigate this risk and support continued development activity independent of near-term municipal processes.
Malherbe concluded by saying that notwithstanding these constraints, the Group remains focused on the disciplined execution of its approved strategy, investing in strategic infrastructure, prioritising the continued disposal of non-core assets, the reduction of net debt and the expansion of the Memorial Parks segment.
“Continued investment in strategic infrastructure, including the BDC project, will support the Group’s long-term development pipeline and its ability to deliver sustainable growth over the medium to long term.”
