Berkeley Group: Disciplined returns

Research evidence excerpt

Berkeley Group: Disciplined returns

iQprofile SM Berkeley Group

Key Income Statement Data (Apr) 2025A 2026A 2027E 2028E 2029E Company Sector

(£ Millions) Homebuilders

Sales 2,487 2,383 2,118 2,032 2,092

EBITDA Adjusted 504 450 387 360 375

Depreciation & Amortization -4 -3 -2 -4 -4 Company Description EBIT Adjusted 500 447 385 356 370

Net Interest & Other Income 29 5 5 8 8 Berkeley Group is a developer of high-quality housing and

Tax Expense / Benefit -147 -133 -114 -106 -111 mixed-use schemes focusing on London and the South

Net Income (Adjusted) 382 318 275 257 268 East focusing on challenging and complex sites that are

Average Fully Diluted Shares Outstanding 103 96 93 90 86 often beyond the scope of conventional homebuilders. It

Key Cash Flow Statement Data targets building >90% of its development on brownfield

Net Income (Reported) 382 318 275 257 268 land. Berkeley has the longest land supply years (>10 years)

Depreciation & Amortization 4 3 2 4 4 and one of the lowest land cost as % in selling price. Its

Change in Working Capital -216 -95 -154 32 -8

average selling price ranges between £550k and £650k per Deferred Taxation Charge 0 0 0 0 0

Other CFO 23 34 -71 -30 -32 unit.

Cash Flow from Operations 193 260 53 263 232

Capital Expenditure -1 0 0 0 0

(Acquisition) / Disposal of Investments -2 -69 0 0 0 Investment Rationale

Other CFI 0 27 0 0 0 We have a Buy rating for Berkeley. We believe its limited

Cash Flow from Investing -3 -42 0 0 0

exposure to mortgage buyers and focus on brownfield

Share Issue / (Repurchase) -130 -233 -130 -120 -120

Cost of Dividends Paid -252 0 0 0 -44 should be more resilient in a volatile market where they do

Increase (decrease) debt 18 -18 0 0 0 not rely heavily on volume recovery. Expectations are set