April 16, 2024
Sygnus Real Estate Finance Limited (SRFJMD)
Unaudited financials for the six months ended February 29, 2024:
Sygnus Real Estate Finance Limited (SRFJMD) reported a 38% decrease in interest income totaling $88.12 million for the six months ended February 29, 2024, compared to $142.21 million in the corresponding period last year. Interest income for the second quarter decreased 34% to close at $44.28 million compared to $67.27 million for the comparable quarter of 2023.
Interest expense amounted to $175.86 million (2023: $153.74 million); this represents an increase of 14% year over year. Consequently, net interest expense decreased by 661% to $87.75 million compared to $11.53 million for the six months ended February 29, 2023. The company made a net interest expense of $46.57 million for the second quarter versus $24.46 million reported for the similar quarter of 2023.
Management fees decreased by 55% to close at $64.30 million (2023: $143.46 million), while Corporate service fees decreased by 7% from $23.71 million in 2023 to $22.06 million in the period under review. As a result, operating expenses for the six months ended February 29, 2024, amounted to $172.79 million, a 20% decrease relative to $215.86 million reported in 2023.
Operating loss for the six months ended February 29, 2024, amounted to $319.32 million, a 5% increase relative to $305.17 million reported in 2023. Operating loss for the second quarter amounted to $186.64 million (2023: $132.53 million). Share of loss of joint venture totalled $808, from the corresponding period last year. (2023: $3,299).
Profit before Taxation for the six months ended February 29, 2024, amounted to $172,794 a 20% decline relative to $215,859 reported in 2023. Profit before Taxation for the second quarter amounted to $88,870 (2023: $112,164). Loss for the period for the six months amounted to $320.13 million, a 6% increase from the $301.87 million reported in 2023. For the second quarter of 2024, a loss of $187.15 million (2023: $129.37 million).
Consequently, Loss Per Share for the six months amounted to $1.71 (2023: LPS: $1.61), while Loss Per Share for the quarter totalled $1.00 (2023: LPS: $0.69). The twelve-month trailing LPS was $2.19, and the number of shares used in these calculations was 187,392,532.
Notably, SRFJMD’s stock price closed the trading period on April 15, 2024, for $12.79.
Balance Sheet Highlights
The company’s assets totaled $15.22 billion (2023: $14.87 billion). The movement in total assets was comprised of an aggressive increase in ‘asset held for sale’ by $1.11 billion, where the prior period was nil. There was also a 93% decrease in ‘ Cash and Cash Equivalents’ to close at $38.21 million (2023: $585.14 million).
Shareholder’s equity was $7.48 billion (2023: $7.29 billion), representing a book value per share of $39.92 (2023: $38.89).
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