Burstone Group Limited · JSE:BTN
Burstone — Corporate Update (March 2025)
17 slides from Burstone's corporate update, Mar 24, 2025
Slide 1: Pre-close trading update and investor presentation
Transform potential Pre-close trading update and investor presentation 24 MARCH 2025 THIS DOCUMENT SHOULD BE READ IN CONJUNCTION WITH THE FULL ANNOUNCEMENT MADE ON SENS ON 24 MARCH 2025 COMMENTARY ON THE GROUP'S FINANCIAL PERFORMANCE IN THIS PRE-CLOSE TRADING UPDATE COMPARES FORECAST FY2025 TO FY202
Slide 2: Progress made on our strategic initiatives
01 Progress made on our strategic initiatives Transform potential
Slide 3: Significant progress in executing our strategy
Significant progress in executing our strategy… De-gearing the Expansion of the Successful debt Optimisation of Momentum in balance sheet Group’s fund and refinancing and operational costs the integration asset sound balance process • LTV expected to management sheet • Leveraging be in range of stra
Slide 4: Strategic progress in our regions
Strategic progress in our regions South Africa Europe Australia • Burstone is targeting implementation of • Successful completion of Blackstone • Irongate continues to provide a the SA Core Plus platform on the transaction strong platform for Burstone to grow following basis: • Marginally accretive
Slide 5: Accelerating the expansion of the Group's fund and asset management strategy
Accelerating the expansion of the Group’s fund and asset management strategy Third party AUM* (Rbn) Fund and asset management fees Driving increased returns on capital deployed An increase Fund and asset management fees: of c.2.8x R25.2bn • Fee income expected to comprise 11% of earnings (FY24: 7.3%
Slide 6: De-gearing of the Group's balance sheet
De-gearing of the Group’s balance sheet Provides significant headroom to support the Group’s strategic initiatives 2% - 3% (9%) 44% 1 •1 Deferred consideration for management company, amortization of intangibles and 2 (3% - 4%) 1% - 2% 34% - 36% other structural items 3 4 •2 Cash proceeds, net of pr
Slide 7: Expected Group performance FY25
02 Expected Group performance FY25 Transform potential
Slide 8: Overall Group performance
Overall Group performance • The Group is expected to deliver full year results in line with previous full year guidance provided of approximately 2% to 4% lower than the 2024 financial year (FY24) • This would deliver FY25 distributable income per share (DIPS) of between 101.44cps and 103.56cps (FY2
Slide 9: Overall Group performance: in line with guidance
Overall Group performance: in line with guidance Key elements which have underpinned the Group’s performance: • The South African base like-for-like (“LFL”) net property income (“NPI”) is expected to be in line with the prior year, reflecting a resilient retail performance which is offset by declinin
Slide 10: Performance of the South African business
Performance of the South African business • LFL base NPI for the South African portfolio is expected to be in line with the prior year • Total average vacancies across the portfolio are expected to increase to c.5.5% (Mar-24: 4.2%) driven by a large industrial asset that became vacant in the second
Slide 11: Performance of the European business
Performance of the European business • The performance of the PEL platform is expected to deliver a positive LFL NPI growth mainly driven by positive rental reversions (c.13%) and indexation (c.4%), partially offset by higher average vacancies of c.4% (Mar-24: 1%) • Burstone has decided not to pursue
Slide 12: Performance of the Australian business
Performance of the Australian business • The Group’s investment in Irongate continues to perform well, benefiting from the significant growth in AUM and underlying real estate performance which is in line with the deal thesis • The Irongate Group is well positioned to capitalize on a strong pipeline
Slide 13: Closing
03 Closing Transform potential
Slide 14: Concluding remarks
Concluding remarks • The Group’s real estate portfolio is performing as expected and in line with guidance • Strategically the Group is pleased with the progress made across the business: o De-gearing the balance sheet, reducing LTV significantly; o Establishing a funds management business in Europe
Slide 15: Concluding remarks
Concluding remarks • The Group will continue to focus on the recycling of direct on-balance sheet investments and using the proceeds to co-invest in fund management platforms, which will result in a significant increase in third party funds under management. • Expanding the Group’s fund and asset ma
Slide 16: Hybrid model: fully integrated international real estate business
Hybrid model: fully integrated international real estate business INVESTMENT FUNDS MANAGEMENT On-balance sheet real estate Off-balance sheet fund and asset investments management platforms On-the ground • Net property income management • Fee revenue Investment income teams with • demonstrable • Enha
Slide 17: Disclaimer
Disclaimer The information contained herein is for information purposes only and readers should not rely on such information as advice in relation to a specific issue without taking financial, banking, investment or professional advice. Although information has been obtained from sources believed to