November 4, 2024

Sygnus Real Estate Finance Limited (SRFJMD)

Audited financials for the twelve months ended August 31, 2024:

Sygnus Real Estate Finance Limited (SRFJMD) for the twelve months ended August 31, 2024, reported a 29% decrease in Interest income totaling $180.07 million compared to $253.55 million in the corresponding period last year. Interest income for the fourth quarter had a 16% decrease to close at $46.05 million compared to $55.08 million for the comparable quarter of 2023.

Interest expense amounted to $382.85 million (2023: $319.33 million), this represents an increase of 20% year over year. Consequently, net interest loss increased by 208% to $202.78 million compared to the net interest loss of $65.79 million for the twelve months ended August 31, 2023. The company booked net interest loss of $59.71 million for the fourth quarter versus the net interest loss of $29.29 million reported for the similar quarter of 2023.

Management fees decreased by 56% to close at $128.79 million (2023: $293.34 million), while corporate service fees decreased by 9% from $48.29 million in 2023 to $43.89 million in the period under review. As a result, operating expenses for the twelve months ended August 31, 2024, amounted to $330.74 million, a 27% decrease relative to $452.98 million reported in 2023.

Operating loss for the twelve months ended August 31, 2024, amounted to $130.88 million, a 31% decrease relative to the operating loss $188.46 million reported in 2023. Operating profit for the fourth quarter amounted to $302.81 million (2023: $279.78 million). Share of profit of joint venture totalled $493.49 million, a 45% increase from the corresponding period last year. (2023: $340.22 million).

Profit before Taxation for the twelve months ended August 31, 2024, amounted to $362.61 million, a 139% increase relative to $151.76 million reported in 2023. Profit before Taxation for the fourth quarter amounted to $803.48 million (2023: $616.87 million).

Taxation charge for the twelve months ended August 31, 2024, amounted to $47.52 million (2023: Tax credit of $59.68 million). Profit for the twelve months amounted to $315.08 million, a 49% increase from the $211.44 million reported in 2023. For the fourth quarter, Profit for the period was $771.24 million (2023: $676.55 million).

Consequently, Earnings Per Share for the twelve months amounted to $1.68 (2023: EPS: $1.13), while Earnings Per Share for the quarter totaled $4.12 (2023: EPS: $3.61). The number of shares used in these calculations was 187,392,532.

Notably, SRFJMD’s stock price closed the trading period on October 30, 2024, at a price of $10.49 with a corresponding P/E ratio of 6.24x.

Balance Sheet Highlights

The company’s assets totalled $15.85 billion (2023: $15.17 billion). This upward movement was largely due to “Cash and cash equivalents,” which amounted to $900.97 million (2023: $61.23 million), followed by a 32% increase in “assets held for sale,” which amounted to $1.55 billion (2023: $1.11 billion).

Shareholder’s equity was $8.12 billion (2023: $7.80 billion), representing a book value per share of $43.31 (2023: $41.63).

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