April 17, 2023

Sygnus Real Estate Finance Limited (SRF) for the six months ended February 28, 2023:

Net interest loss amounted to $11.53 million (2022: income of $28.71 million). For the quarter, net interest loss amounted to $24.46 million (2022: income of $30.94 million).

Of the six-month net interest loss:

• Interest income increased 51% to $142.21 million (2022: $94.18 million).
• Interest expenses increased 135% to $153.74 million (2022: $65.47 million).

Fair value loss from financial instruments at fair value through profit or loss amounted to $48.19 million (2022: gain of $41.38 million). Foreign exchange loss increased 150% to $47.23 million (2022: $18.92 million).

Other income increased 464% to $17.64 million (2022: $3.13 million).

Operating expenses increased 21% to $215.86 million (2022: $177.75 million). Of this, management fees increased the most by 43% to $143.46 million (2022: $100.13 million).

Consequently, operating loss increased 147% to $305.17 million (2022: $123.45 million). For the quarter, operating loss increased 416% to $132.53 million (2022: $25.67 million).

Share of profit of joint venture amounted to $3.30 million (2022: loss of $1.28 million) and there were no taxation charges for the period.

As such, net loss increased 142% to $301.87 million ($124.74 million). For the quarter, net loss increased 422% to $129.37 million (2022: $24.79 million).

Total comprehensive loss increased 142% to $301.90 million (2022: $124.77 million).

Loss per share (LPS) amounted to $0.92 (2022 LPS: $0.38). For the quarter, LPS amounted to $0.40 (2022: $0.08). The trailing twelve-month earnings per share amounted to $1.58. The number of shares used in our calculations is 326,526,232. SRFJMD and SRFUSD stock price closed the trading period at a price of $11.70 and $0.07 respectively on April 14, 2023, with a corresponding P/E ratio of 7.41x.

Balance sheet at a glance:

Total assets, as at February 28, 2023, increased 45% to $14.87 billion (2022: $10.25 billion). This was mainly attributed to ‘Investment Property’ which increased 39% to $10.67 billion (2022: $7.68 billion).

Shareholders’ equity, as at February 28, 2023, increased 8% to $7.29 billion (2022: $6.77 billion), resulting in a book value per share of $22.32 (2022: $20.74).

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