January 14, 2025
Sygnus Real Estate Finance Limited (SRFJMD)
Unaudited financials for the first quarter ended November 30, 2024:
Sygnus Real Estate Finance Limited (SRFJMD) for the first quarter ended November 30, 2024, reported a 34% increase in interest income totalling $58.76 million compared to $43.83 million in the corresponding three months last year.
Interest expense amounted to $189.58 million (2023: $85.01 million), this represents an increase of 123% year over year. Consequently, net interest expense increased by 218% to $130.83 million compared to $41.18 million for the first quarter ended November 30, 2023.
Fair value loss from financial instruments amounted to $28.56 million (2023: loss of $7.83 million), while other revenue increased from $10.52 million in 2023 to $12.44 million in 2024. Consequently, Net investment loss totalled $158.02 million relative to loss of $48.75 million.
Management fees increased by 28% to close at $41.88 million (2023: $32.59 million), while Other expenses increased by 18% from $40.19 million in 2023 to $47.46 million for the three months. As a result, Operating expenses for the first quarter amounted to $101.31 million, a 21% increase relative to $83.92 million reported in 2023.
Operating loss for the three months ended November 30, 2024, amounted to $259.32 million, a 95% increase relative to the $132.68 million loss reported in 2023.
Share of profit in joint venture totalled $23.63 million, an increase from a loss of $303,000 booked in corresponding period last year.
No taxes were reported. As such, Net loss for the first quarter ended November 30, 2024, amounted to $235.69 million, a 77% increase relative to $132.98 million reported in 2023.
Consequently, Loss Per Share for the three months amounted to $1.26 (2023: LPS: $0.71). The twelve-month trailing EPS was $1.16, and the number of shares used in these calculations was 187,392,532.
Notably, SRFJMD’s stock price closed the trading period on January 13, 2025, at a price of $9.88, with a corresponding P/E ratio of 8.72x.
Balance Sheet Highlights
The company’s assets totalled $15.20 billion (2023: $15.19 billion). SRF noted that, “This was primarily driven by a J$1.06 billion increase in dry powder, and a J$830.91 million or 54.0% increase in investments in Joint Ventures to J$2.37 billion when compared to J$1.54 billion in Q1 2024, offset by a reduction of J$1.76 billion in total property investments as SRF continues the optimization of its strategic asset mix. The decrease in the value of investment property was primarily due to the sale of the Hillcrest, Spanish Penwood, and Lady Musgrave Road assets.”
Shareholder’s equity was $7.81 billion (2023: $7.67 billion), representing a book value per share of $41.70 (2023: $40.92).
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