Berkeley Earnings: Solid Finish to Fiscal 2024 but New Affordable Housing Unit Underwhelms Investors

No-moat Berkeley Group delivered a resilient set of fiscal 2024 financial results, delivering GBP 557 million pretax profit, in line with our expectations. The modest 7% year-on-year decline in pretax profit is pleasing given the significantly challenged UK housing market conditions that prevailed in 2023. Berkeley’s forward order book remains strong, and with the group already 80% sold for the coming year, it has raised its fiscal 2025 pretax profit guidance by 5% to GBP 525 million. However, Berkeley’s unveiling of a new division to focus on affordable rental housing underwhelmed investors.