Burstone Group Limited · JSE:BTN
Burstone — FY2025 Earnings Presentation
49 slides from Burstone's earnings presentation, May 2025
Slide 1: Results for the year ended 31 March 2025
Transform potential Results for the year ended 31 March 2025 MAY 2025
Slide 2: Burstone at a glance as at 31 March 2025
Burstone at a glance as at 31 March 2025 We are a fully integrated international real estate business 30 years + R42bn R23.4bn 50+ 9 track record Total portfolio third-party assets real estate countries (GAV)* under professionals management^ Investing in best of breed assets in select markets Fund M
Slide 3: Two years of significant strategic transformation
Two years of significant strategic transformation Mar 2023 Nov 2023 Nov 2024 JV with Irongate establish Irongate establish Irongate Group industrial JV with industrial JV with Jun 2023 Phoenix Property Sep 2024 TPG Angelo 2024 / 2025 Investors Gordon Internalisation of Strategic Seeding and SA and E
Slide 4: Accelerating our fund and asset management strategy
Accelerating our fund and asset management strategy Total portfolio (GAV) of c.R42bn Third-party AUM* (Rbn) with 56% third-party AUM R41.2bn R41.7bn R23.4bn 14.4 13.5 Up 2.6x 16.8 21 R8.9bn 21.1 3.6 5.3 6.6 5.7 7.2 FY24 FY25 FY24 FY25 Australia PEL SA Australia PEL Majority of portfolio in core+ 68%
Slide 5: A year of strategic transformation and stable operational performance
A year of strategic transformation and stable operational performance Full year results in line with Dividend payout ratio: 90% Stable operational performance guidance Cash dividend up 3.1% to SA LFL NOI: up 0.2% DIPS down 3.0% to 102.5cps 92.22cps (Mar-24: 89.46cps) EU LFL NOI: up 0.5% (EUR) (March
Slide 6: Overview of results
01 Overview of results Transform potential
Slide 7: Distributable earnings in line with guidance
Distributable earnings in line with guidance Rm 851 2 1 Down 3% 70 825 2 (36) 3 (23) 25 7 8 (6) 11 6 4 5 (69) SA LFL PEL LFL Other investment income Overheads FY25 NOI investment income (Izandla & Irongate) distribution Opening distribution SA disposals, capex, PEL impact of BX sale Fee income Resid
Slide 8: LTV: 31 March 2025
LTV: 31 March 2025 In line with upper end of guidance 2.1% •1 Deferred consideration for 44.0% 1 management company, amortisation of intangibles and other structural items 2 1.3% 36.3% -9.3% 3 4 -1.8% •2 Cash proceeds, net of premium impairment on PEL •3 Capital recycling of c.R1bn of SA assets, net
Slide 9: GAV analysis: 31 March 2025
GAV analysis: 31 March 2025 South Africa: GAV R13.5bn BTN Investment: R13.5bn Total portfolio (GAV) of c.R42bn GAV: Capital Allocation GAV: By Sector 22% 37% 35% 63% GAV: Location GAV: Capital Allocation GAV: By Sector 43% 7% Europe: GAV €1.0bn BTN Investment: R1.7bn 13% 32% 4% 15% GAV: Capital Allo
Slide 10: Improved Group balance sheet
02 Improved Group balance sheet Transform potential
Slide 11: Reduced risk and improved flexibility
Reduced risk and improved flexibility Liquidity risk reduced • c.R2.6bn of committed available facilities to settle short debt Interest rate risk and cost of expiries interest reduced • Refinanced R6.6bn of Group ZAR and EUR debt oTenor improved from 2.2 years to 3 years oMargin improved by c.20bps
Slide 12: Group debt profile
Group debt profile Limited risk in FY26 and FY27 Debt expiry profiles (R’bn) 2.2 1.9 0.8 0.8 1.1 0.8 0.7 0.8 1.1 0.7 0.2 0.6 0.3 0.1 0.2 0.1 FY26 FY27 FY28 FY29 FY30 FY31 Bank debt Euro debt Corporate bonds FY26 and FY27 expiries are more than covered by existing committed bank facilities 12
Slide 13: Group euro debt and swap expiry
Group euro debt and swap expiry Expiry profile proactively managed EUR debt and CCIRS expiry (EUR’m) EUR IRS expiry (EUR’m) 60 12 10 5 20 1 FY26 FY27 FY28 FY29 FY26 FY27 Fixed rate 0.5% 3.78% 4.23% 4.81% Fixed rate 0.22% 2.83% 13
Slide 14: Stable portfolios
03 Stable portfolios Transform potential
Slide 15: Performance – South African property
Performance – South African property 15
Slide 16: SA snapshot of performance
SA snapshot of performance Mature portfolio which supports a sustainable level of earnings; effective capital recycling continues • Stable portfolio with marginal increase in base LFL NOI of 0.2% YoY Financial performance Letting performance • Strong letting across the portfolio with notable long da
Slide 17: SA office portfolio
SA office portfolio Positive reversions on shorter leases and reduced vacancies Sector trends Financial and operational metrics • Outlook for sector is cautiously optimistic, driven mainly Gross income Arrears (% of growth (3.0%) collectibles) 4.4% by demand for P-Grade and A-Grade offices (Mar-24:
Slide 18: SA industrial portfolio
SA industrial portfolio Positive reversions on shorter leases offset by increased vacancies Financial and operational metrics Sector trends • Positive supply-demand Arrears (% of LFL NOI growth 0.0% 2.7% collectibles) dynamics remain (Mar-24: 9.5%) (Mar-24: 0.8%) • Market rental growth in short-to-m
Slide 19: SA retail portfolio
SA retail portfolio Measurable results backed by strong operational metrics Financial and operational metrics Trading stats* Sector trends Arrears (% of Average turnover +3.2% • Consumer confidence and LFL NOI growth 3.0% 2.9% (Mar-24: 5.9%) collectibles) (Mar-24: +4.6%) consumer debt still a (Mar-2
Slide 20: SA portfolio outlook
SA portfolio outlook • Macroeconomic environment: o Low economic growth o Political uncertainty o Challenging operating environment • SA Core Plus platform; o Due diligence complete, pending approvals o Burstone to seed the platform with up to c.R5 billon o Burstone to retain a significant equity in
Slide 21: Performance – Europe
Performance — Europe (©) Burstone REAL ESTATE PARTNERS 21
Slide 22: PEL snapshot
PEL snapshot Growth in contracted rent offset by an increase in vacancies • Transaction completion: Blackstone transaction successfully completed on 12 November 2024 Financial performance Letting performance • Strategic launch: Marks the launch of • 0.5% base LFL NOI growth (Mar-24: • 14.8% positive
Slide 23: Europe outlook
Europe outlook • Macroeconomic: o Subdued growth environment o Cautious capital environment o Potential uplift from defense and infrastructure spend • Strategic focus: Maximising stakeholder value through continued partnership with Blackstone • Earnings direction: PEL to benefit from positive rental
Slide 24: Australia
Australia (©) Burstone REAL ESTATE PARTNERS 24
Slide 25: Performance of the Australian business
Performance of the Australian business Significant growth in both fees and AUM as strategy takes hold Management platform performance: • Significant increase in AUM to A$624m (up 27% yoy) • Solid growth in fee income (16.7% yoy) • Operating margins of c.35% (Mar-24: 33%) • New industrial platform wi
Slide 26: Australia outlook
Australia outlook • Macroeconomic: o Steady GDP growth amid global slowdown o Continued capital flow and market stability • Investment performance: o Expect strong growth in earnings from existing investment as asset management initiatives take effect o Early debt refinance on Smithfield asset immin
Slide 27: Outlook and guidance for FY26
Outlook and guidance for FY26 Transform potential
Slide 28: Outlook and guidance for FY26
Outlook and guidance for FY26 • Strategic shift gaining momentum: Repositioned to an integrated international real estate investor, fund and asset manager • South Africa: • Modest like-for-like NOI recovery expected as a result of o Continued strong growth in retail given underlying operating metric
Slide 29: Hybrid model: fully integrated international real estate business
Hybrid model: fully integrated international real estate business Two distinct businesses operating in tandem to drive significantly increased value INVESTMENT FUNDS AND ASSET MANAGEMENT On-balance sheet real estate investments Off-balance sheet fund and asset management platforms Balance sheet c.R1
Slide 30: Looking forward
Looking forward INVESTMENT FUNDS AND ASSET MANAGEMENT Steady state with capital upside will drive investment “Early phase” with significant upside potential income returns South Africa South Africa • Mature and stable asset portfolio – R13.5bn • Conclude Core Plus platform: c.R5bn earmarked • Positi
Slide 31: In conclusion: focused strategy to continue to grow the business
In conclusion: focused strategy to continue to grow the business Integration Optimise current Maintain a robust Growth Holistic portfolios balance sheet sustainability • Unlock distribution • Enhance quality of • Maintain a medium- • Build out and • Further embed ESG synergies and capability recurri
Slide 32: Annexures
Annexures Transform potential
Slide 33: Group results
Group results (©) Burstone REAL ESTATE PARTNERS 33
Slide 34: Distributable earnings statement
Distributable earnings statement Actual Prior year DIPS in line with Rm FY25 FY24 % Diff. Notes guidance SA portfolio 888 922 (3.7%) Stable operational performance LFL base NPI 949 947 0.2% (1) • • Results impacted by dilutive SA sales (3%) Disposals/developments/acquisitions 122 203 (39.9%) (1) • C
Slide 35: IFRS distribution reconciliation for the period
IFRS distribution reconciliation for the period Actual Prior year Notes: Rm Notes FY25 FY24 Diff. 1. Impairment on remaining 20% of PEL of R1.1bn in line with circular (Loss)/Profit after tax (2,224) 232 (2,456) and R0.4bn of FX (offset in MTM). Straight–line rental revenue adjustment 9 5 4 2. Rela
Slide 36: Summarised balance sheet
Summarised balance sheet Actual Prior year Rm FY25 FY24 % Diff. Property related investments South Africa 13,496 14,450 (6.6%) Europe - PEL 1,749 8,289 (78.9%) Australia 698 491 42.1% PEL portfolio The decrease relates to the sale of 74% of Goodwill and intangible assets 440 787 (44.0%) Total invest
Slide 37: Net asset value bridge
Net asset value bridge Rm 12 439 8,293 1 (189) 2 31 (1,540) 3 4 (298) 5 95,337 483 (960) Opening NAV SA adjustments PEL adjustments AUS adjustments Working capital Amortisation, MTM, Other Closing NAV Notes: 1. South African discount on sales and impairment. 2. Net impairment of R1.5bn made up of PE
Slide 38: Balance sheet metrics
Balance sheet metrics Actual as at 31 March 2025 ZAR debt AUD debt EUR debt Total Total debt (R'bn) 3.4 0.7 2.1 6.2 ZAR debt 3.4 - - 3.4 EUR debt - - 1.6 1.6 EUR CCIRS - - 0.5 0.5 AUD CCIRS - 0.7 - 0.7 Interest rate swap balance (R’bn) 3.5 - 1.6 5.1 Debt maturity (years) 3.0 2.9 3.0 3.0 Swap maturit
Slide 39: Performance – South African property
Performance – South African property 39
Slide 40: SA distributable earnings for the year ended March 2025
SA distributable earnings for the year ended 31 March 2025 Actual Prior year Rm Gross income FY25 1250 FY24 1 247 % Diff. 0.2% LFL NOI growth 0.2% Net expense (301) (300) (0.3%) • Strong letting activity Base net property income 949 947 0.2% across all sectors Office 364 372 (2.2%) • Negative revers
Slide 41: SA office portfolio
SA office portfolio Continued market oversupply resulting in negative reversions Actual Prior year Key portfolio metrics Rm 31-Mar-25 31-Mar-24 % Diff. Mar 2025 Mar 2024 Gross income 513 529 (3.0%) No. of properties 24 27 Net expense (149) (157) 5.1% Base net property income 364 372 (2.2%) Property
Slide 42: SA industrial portfolio
SA industrial portfolio Improvement in reversions offset by increased vacancies Actual Prior year Key portfolio metrics Rm 31-Mar-25 31-Mar-24 % Diff. Mar 2025 Mar 2024 Gross income 289 290 (0.3%) No. of properties 21 28 Net expense (52) (53) 1.9% Base net property income 237 237 0.0% Property asset
Slide 43: SA retail portfolio
SA retail portfolio Continued improvement in trading metrics and growth momentum maintained Actual Prior year Key portfolio metrics Rm 31-Mar-25 31-Mar-24 % Diff. Mar 2025 Mar 2024 Gross income 448 428 4.7% No. of properties 13 18 Net expense (100) (90) (11.1%) Base net property income 348 338 3.0%
Slide 44: Integrating ESG – South Africa
Integrating ESG – South Africa Driving down cost of occupation for our clients and transforming the society in which we operate Strategy Description Solar • Solar expansion planned for FY26 of 5 MW Energy Performance • 29 buildings Certificates Carbon Disclosure Project • B-rating Climate and energy
Slide 45: Total SA portfolio
Total SA portfolio TOTAL OFFICE INDUSTRIAL RETAIL Actual Actual Actual Actual Portfolio 31-Mar-25 31-Mar-24 31-Mar-25 31-Mar-24 31-Mar-25 31-Mar-24 31-Mar-25 31-Mar-24 Asset value (R'bn) 13.2 14.2 4.7 5.0 2.7 3.3 5.8 5.9 Number of properties 58 73 24 27 21 28 13 18 GLA (m2) 845 345 971 331 221 009 2
Slide 46: SA letting activity
SA letting activity Strong letting performance across all sectors with 89.5% of expiring space (and early letting) re-let at -4.6% negative reversion Weighted Weighted As at 31 Mar Expiries and Renewals Rental Average average gross average gross Incentive Retention WALE 2025 cancellations and new le
Slide 47: SA Base portfolio composition
SA Base portfolio composition Sectoral spread by NOI Sectoral spread by GLA Sectoral spread by asset value 25% 23% 37% 30% 42% 44% 38% 35% 26% Retail Office Industrial Retail Office Industrial Retail Office Industrial Industrial Retail Office 6% Manufacturing 13% 34% Standard Units 40% Single-tenant
Slide 48: SA lease expiry profile
SA lease expiry profile Well-staggered lease expiry profile with 75.7% of leases expiring in FY27 and beyond 30.0% 25.0% 24.3% 20.0% 19.1% 16.6% 16.4% 15.0% 14.0% 11.9% 10.1% 9.5% 10.0% 8.5% 7.6% 7.7% 7.1% 7.2% 5.3% 4.3% 4.6% 4.6% 4.6% 5.0% 3.7% 2.7% 2.8% 3.0% 2.8% 1.4% 0.0% FY26 FY27 FY28 FY29 FY30
Slide 49: 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