| Imagery Source: Burstone Group Limited |
| Information Source: Share Net |
| The board of directors of Burstone ("the Board") is pleased to announce the results for the six months ended 30 September 2025. |
| OVERVIEW FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025 |
| 1H26 Distributable income per share ("DIPS") increased by 3.0% to 51.07 cents (1H25: 49.53 cents), supported by: |
- Strong underlying real estate performance;
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- Growing fee income from the funds and asset management business; and
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- A reduction in total operating overheads of 5.5%
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| Overall, DIPS performance was partially offset by: |
- Marginally dilutive South African asset sales in FY25; and
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- The impact of funding capital expenditure, deployment into Australian investments, deferred consideration and transactional cash flow timing
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| Real estate investment in South Africa: |
- Strong LFL Base NOI growth of 5.3%
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- Improved vacancy of 4.7% (FY25: 6.7%)
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- Improved negative reversions of 2.5% (1H25: negative 8.4%) - Significant solar roll-out: 8MW (c. 60% increase) in solar generation within the next 12 months
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| Europe: |
- Stable performance delivering LFL earnings in line with the prior year
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- Strong positive rental reversions of 16.3% and indexation of 2.6%, offset by increased vacancy within the portfolio to 14.8% as the strategic partnership prioritises capturing maximum estimated rental value ("ERV") growth over short-term vacancy
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| Australia: |
- Total investment income from real estate of R14m (1H25: nil) as asset management initiatives take effect and positive rental reversions are captured
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| Funds and asset management |
- 2% increase in third-party GAV
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- Fee income increased 70.6% to R58m and now represents 14.1% (1H25: 8.5%) of Group DIPS
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| South Africa: |
- Remain committed to the SA Core Plus platform -
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- Seeding platform with c. R5bn of retail and industrial assets
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| Europe: |
- The successful completion of the Blackstone transaction last year represented the achievement of a key milestone for Burstone
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- Burstone's 20% co-investment and retained management mandate provides long-term alignment and earnings potential as the platform matures and performs in line with expectations
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- Assessing opportunities to establish additional 3rd-party fund platforms, expanding its capital partnerships
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| Australia: |
- Third-party equity under management ("EUM") increased to A$668m (7% increase from FY25)
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- Fee income of R4m (1H25: R2m), expected to accelerate in 2H26
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- A$170m of new equity commitments from Australian capital partners to support platform growth will increase third-party GAV by c. 11%
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| Balance sheet highlights |
- The Group's pro-forma LTV at the reporting date was 39.0% (FY25: 36.3%), encompassing the effects of solar-related capital expenditure, further deployment for offshore investments, offset by SA asset disposals.
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- The Group will continue to target a leverage ratio of below 35% with a medium-term LTV outlook of between 34% and 36%, supported by continued capital recycling predominantly through SA asset sales.
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- R0.5bn of SA assets pending transfer.
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- A further c. R1.0bn to c. R1.5bn earmarked for sale within the next 18 months creates co-investment capacity to support R10bn of third-party GAV potential.
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- The Group has significant liquidity as it holds R1.3 billion in undrawn committed available facilities and cash, excluding proceeds from disposals that have yet to be completed.
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- Net asset value ("NAV") has decreased by 2.1% to R11.53ps (FY25: R11.78ps) largely as a result of mark-to-market, amortisation and foreign exchange. Property-related valuations for the period have remained relatively flat, with nominal fair value gain recognised in respect of the various portfolios.
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| PROSPECTS AND GUIDANCE |
| The Group continues to execute its strategy, transitioning from a traditional property owner to a fully integrated international real estate investor, funds and asset management business. The Group's performance reaffirms Burstone's progress over the past year in achieving operational stability and scaling its funds and asset management business across its respective regions. |
| As a result, earnings momentum is building as underlying real estate performance strengthens and funds management growth gains traction. Renewed focus on strategic operational alignment across geographies will yield cost efficiencies over the short- to medium-term. Balance sheet strength remains critical to support Burstone's growth ambitions and fund platform scalability. |
| Balance sheet |
| The Group's balance sheet remains well-positioned, providing flexibility to capitalise on future growth opportunities. |
| Capital optimisation remains a core focus for the business. In addition to creating balance sheet "firepower" through continued SA asset sales, Burstone is exploring multiple funding avenues, including additional funds management platforms/strategies and the introduction of new limited partner ("LP") capital to co-invest alongside Burstone across all markets. |
| Group outlook |
| Burstone remains committed to FY26 DIPS growth of between 2% and 4%, with the upper range contingent on successful capital deployment. While the macroeconomic environment remains uncertain, management's prudent execution and disciplined approach continue to support measured growth expectations. |
| For the full document, click the link below |
| Burstone Group Limited |
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