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22 May 2024 (Johannesburg Stock Exchange) The Burstone Group Limited has released its audited consolidated financial results for the fiscal year concluding on 31 March 2024, reflecting strong performance fueled by strategic internalization and global growth initiatives.

The Group reported a 7.4% rise in distributable earnings per share for the second half of the year, resulting in a full-year increase of 1.0% to 105.67 cents per share, in line with previous expectations. Revenue rose by 1.3% to ZAR 1,856,692,000, while operating profit jumped by 10.0% to ZAR 1,399,685,000. Basic earnings per share increased by 19.3% to 28.91 cents. Nevertheless, the Group’s net asset value per share fell by 4.5% to ZAR 15.45, primarily due to unrealised mark-to-market effects on derivatives and a minor impairment in the European portfolio.

As per data provided by the Johannesburg Stock Exchange (JSE), Burstone’s financial performance benefited from improved operational efficiency and cost-reduction strategies, mainly within its South African and European operations. The South African division recorded a 1.5% increase in like-for-like net property income, while the European division experienced a 6.2% growth. The Group realized an 8% annualized net management fee reduction due to its internalization initiatives, surpassing initial expectations.

Burstone continues to prioritize lowering its adjusted loan-to-value ratio, which was 44.0%, through the sale of assets and efforts to restructure financing. Around R1.3 billion in South African assets were sold at a 1.5% increase over their book value, with additional asset sales expected in both South Africa and Europe.

The Group’s European portfolio faced a 1% loss because of macroeconomic conditions, yet it still maintains low vacancy levels and sees positive rent increases. Burstone’s initiatives in Europe also led to corporate savings of around £2.1 million, with additional benefits expected in the next year.

Burstone’s outlook for the future involves concentrating on low-capital projects and fund management approaches, which added R61 million to profits in FY24. The Group anticipates these efforts will have a substantial effect on earnings within the next three to five years. Although facing obstacles like increasing interest rates, the Group is assured of meeting its financial goals and lowering its loan-to-value ratio to a range of 37% to 40% over the next 12 months.

The Group announced a final dividend of 40.95210 cents per share for FY24, reflecting a 75% payout ratio based on the distributable earnings from the second half, resulting in a total dividend of 89.46 cents per share for the year.

Burstone keeps adjusting to changing market situations and is proactively handling its refinancing and interest rate risks. The Group has a strong balance sheet and aims to lengthen the debt maturity schedules through refinancing initiatives. As Burstone deals with the present economic environment, the emphasis is on preserving a high-quality portfolio and seeking new avenues for expansion.

Provided by SyndiGate Media Inc.Syndigate.info).