October 31, 2023
Sygnus Real Estate Finance Limited (SRFJMD) for the year ended August 31, 2023, reported a 17% increase in interest income totaling $253.55 million compared to $217.63 million in the corresponding period last year. Interest income for the fourth quarter had a 15% decrease to close at $55.08 million compared to $64.93 million for the comparable quarter of 2022.
Interest expense amounted to $319.33 million (2022: $148.10 million), this represents an increase of 116% year over year. Consequently, SRFJMD made a net interest loss of $65.79 million compared to net interest income of $69.53 million for the year ended August 31, 2022. The company booked net interest loss of $29.29 million for the fourth quarter versus income of $18.17 million reported for the similar quarter of 2022.
Net interest income and other revenue for the year ended August 31, 2023, amounted to $264.52 million, a 60% decline from the $663.67 million reported in 2022.
Operating expenses for the year ended August 31, 2023, amounted to $452.98 million, a 24% increase relative to $365.44 million reported in 2022. This was largely due to management fees, which increased by 33% to close at $293.34 million (2022: $220.38 million).
Operating loss for the year ended August 31, 2023, amounted to $188.46 million relative to profit of $298.22 million reported in 2022. Operating profit for the fourth quarter amounted to $279.78 million (2022: $495.85 million).
Share of profit of joint venture totalled $340.22 million, a 38% decrease from the corresponding period last year (2022: $546.29 million).
Profit before taxation for the year ended August 31, 2023, amounted to $151.76 million, an 82% decrease relative to $844.51 million reported in 2022. Profit before taxation for the fourth quarter amounted to $616.87 million (2022: $1.04 billion).
Taxation credit for the year ended August 31, 2023, was $59.68 million (2022: Tax charge of $151.56 million). As a result, profit for the year amounted to $211.44 million, a 69% decrease from the $692.96 million reported in 2022. For the fourth quarter, profit for the period was $676.55 million (2022: $890.42 million).
Earnings per share (EPS) for the year amounted to $1.13 (2022: $3.70), while EPS for the quarter totalled $3.61 (2022: $4.75). The number of shares used in these calculations was 187,392,532.
Notably, SRFJMD’s stock price closed the trading period on October 30, 2023, at a price of $11.90 with a corresponding P/E ratio of 10.55x.
Balance Sheet Highlights:
The company’s assets totalled $15.17 billion, representing a 10% increase relative to $13.79 billion booked in 2022. This upward movement was largely due to asset held for sales, which amounted to $1.11 billion (2022: nil), followed by an 11% increase in investment properties, which amounted to $10.44 billion (2022: $9.43 billion).
Shareholder’s equity was $7.80 billion (2022: $7.59 billion), representing a book value per share of $41.63 (2022: $40.50).
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