July 17, 2023
Sygnus Real Estate Finance Limited (SRFJMD) for the nine months ended May 31, 2023, reported an 18% decrease in Interest income, totaling $78.88 million compared to $96.10 million in the corresponding period last year. Interest income for the third quarter had a 77% decrease to close at $7.81 million compared to $33.64 million for the comparable quarter of 2022.
Interest expense amounted to $234.97 million (2022: $101.33 million); this represents an increase of 132% year over year. Consequently, total interest decreased by 171% to an expense of $36.50 million compared to an income of $51.37 million for the nine months ended May 31, 2022. The company booked a total interest expense of $24.97 million for the third quarter versus an income of $22.65 million reported for the similar quarter of 2022.
Management fees increase by 39% to close at $217.26 million (2022: $155.94 million), while Corporate service fees increase by 27% from $28.23 million in 2022 to $35.82 million in the period under review. As a result, operating expenses for the nine months ended May 31, 2023, amounted to $332.57 million, a 22% increase relative to the $272.41 million reported in 2022.
Operating loss for the nine months ended May 31, 2023, amounted to $468.24 million, a 137% increase relative to the loss of $197.62 million reported in 2022. Operating loss for the third quarter amounted to $163.24 million (2022: $74.17 million).
Taxation for the nine months ended May 31, 2023, amounted to nil. The loss for the period of nine months amounted to $465.11 million, a 136% increase from the $197.46 million reported in 2022. For the third quarter, the loss for the period was $163.24 million (2022: a loss of $72.73 million).
Total comprehensive expense for the period for the nine months ended May 31, 2023, amounted to $465.21 million, a 136% increase relative to the $197.48 million reported in 2022. Total comprehensive expense for the period of the third quarter amounted to $163.31 million (2022: $72.71 million).
Consequently, Loss Per Share for the nine months amounted to $1.42 (2022: LPS: $0.60), while Loss Per Share for the quarter totaled $0.50 (2022: LPS: $0.22). The twelve-month trailing EPS was $1.30, and the number of shares used in these calculations was 326,526,232.
Notably, SRFJMD and SRFUSD stock last traded on July 14, 2023, at a price of $12.25 and $0.11 respectively, with corresponding P/E ratios of 9.40x and 12.98x.
Balance Sheet Highlights
As at May 31, 2023, total assets amounted to $14.51 billion (2022: $11.68 billion). This was mainly attributed to the significant increase in the value of ‘Investment Property’ which rose from $8.03 billion in 2022 to $10.83 billion at the end of May 2023, representing a 35% increase.
Shareholder’s equity was $7.12 billion (2022: $6.70 billion), representing a book value per share of $21.82 (2022: $20.51).
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