Burstone Group Limited · JSE:BTN
Burstone — H1 2025 Earnings Presentation
17 slides from Burstone's earnings presentation, Sep 26, 2024
Slide 1: Pre-close trading update and investor presentation
Transform potential Pre-close trading update and investor presentation 26 SEPTEMBER 2024 THIS DOCUMENT SHOULD BE READ IN CONJUNCTION WITH THE FULL ANNOUNCEMENT MADE ON SENS ON 26 SEPTEMBER 2024 COMMENTARY ON THE GROUP'S FINANCIAL PERFORMANCE IN THIS PRE-CLOSE TRADING UPDATE COMPARES FORECAST 1H2025
Slide 2: Progress made on our strategic initiatives
01 Progress made on our strategic initiatives Transform potential
Slide 3: Significant progress made in executing the Group's stated strategy
Significant progress made in executing the Group’s stated strategy Accelerating the expansion of the Group’s fund and asset De-gearing the balance sheet management strategy Successful debt refinancing and Increase in the dividend payout sound balance sheet management ratio to 85% to 90% Expected to
Slide 4: Accelerating the expansion of the Group's fund and asset management strategy
Accelerating the expansion of the Group’s fund and asset management strategy Europe Strategic partnership with Blackstone • 80 / 20 partnership on the Group’s Pan-European Logistics (PEL) portfolio • Launches Burstone’s European funds and asset management strategy • Retain a 20% co-investment in PEL
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 Europe continued German light industrial platform • Currently in exclusive negotiations - 25% co-investment and ongoing management of a €170 million German light industrial and last mile logistics platform • Will replicate
Slide 6: Accelerating the expansion of the Group's fund and asset management strategy
Accelerating the expansion of the Group’s fund and asset management strategy Australia Irongate • Irongate has concluded a new industrial joint venture backed by a leading global alternative asset management firm • Will increase Irongate’s equity AUM from A$490 million to c.A$600 million (up 32% sin
Slide 7: Group portfolio snapshot post proposed transactions
Accelerating the expansion of the Group’s fund and asset management strategy Group portfolio snapshot post proposed transactions* Third party AUM** (Rbn) Fund and asset management fees Driving increased returns on capital deployed R23.0bn 2.5 Fund and asset management fees: An increase of c.5x • R61
Slide 8: De-gearing of the Group balance sheet
De-gearing of the Group balance sheet Provides significant headroom to support the Group’s strategic initiatives • Post the Blackstone transaction, LTV will decrease by 12.5% to c.33.5% • The Group is also well progressed in the sale of several South African assets: - c.R0.3 billion of sales were un
Slide 9: Successful debt refinancing and sound balance sheet
Successful debt refinancing and sound balance sheet Successful refinancing of R6.6 billion of Group ZAR and EUR debt in August 2024 • Strong support received from the Group’s existing lenders • Significantly reduces near-term liquidity risk and provides enhanced flexibility • Achieves an annual marg
Slide 10: Expected Group performance for 1H25
02 Expected Group performance for 1H25 Transform potential
Slide 11: Overall Group performance
Overall Group performance • The Group is expected to deliver first half results in line with previous full year guidance provided of approximately 2% to 4% lower than the 2024 financial year (FY24) • Implies 1H25 distributable income per share (DIPS) of between 49.02cps and 50.04cps (1H24: 51.07cps)
Slide 12: Performance of the South African business
Performance of the South African business • The South African portfolio is expected to deliver a marginal reduction in like-for-like (LFL) NPI of c.1.% to 2% • The retail and industrial portfolios continue to deliver positive NPI growth • Performance in the office sector was impacted by slightly hig
Slide 13: Performance of the European business
Performance of the European business • The performance of the PEL platform is expected to deliver LFL NPI growth of c.1% to 2% • Positive rental reversions (c.5.0%) and indexation (c.3.5%) • Marginally higher vacancy of c.3% (Mar-24: 2.2%; Sep-23: 0.9%) • c.€0.6 million in cost savings achieved thro
Slide 14: Performance of the Australian business
Performance of the Australian business • The Group’s investment in Irongate is performing well, benefitting from significant growth in AUM • The Irongate Group is well positioned to capitalize on a strong pipeline of opportunities Young Husband - Melbourne 14
Slide 15: Closing
03 Closing Transform potential
Slide 16: Concluding remarks
Concluding remarks • The Group’s real estate portfolio is performing as expected, and the Group is on track to deliver first half results in line with guidance • Strategically the Group is pleased with the progress made across the business, notably in the roll-out of its international fund and asset
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