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).
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
