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BARGAINS ON HARBOUR STREET Companies going cheap

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“Those people who step up to the plate with confidence will come out of this crisis very well,”

Michael Lee Chin, Chairman NCB Group.

 

Hit hard by declining earnings, rapid depreciation of the Jamaican dollar, higher than projected interest rates and resulting tightened liquidity, 2008 proved to be the worst in the past six years for the many of the stocks listed on the Jamaica Stock Exchange. Overtaken by developments in the international and local markets, the three JSE indices failed to hold the position held in the early part of the year. Many of the Exchange’s blue chips traded at their lowest levels in 52 weeks as investors sold out and moved away from stocks to money market investments.

The report filed on the Jamaica Stock Exchange website for the end of December indicated that the year’s trading session reflected the following movement of the JSE Indices: –

* The JSE Market Index declined by 27,816.03 points (34.70%) to close at 80,152.03.

* The JSE Select Index declined by 944.23 points (47.57%) to close at 1,984.74.

* The JSE All Jamaican Composite declined by 32,787.93 points (44.31%) to close at 73,994.93.

Overall Market activity resulted from trading in 55 stocks of which 16 advanced, 35 declined and

4 traded firm. Market volume amounted to 2,295,666,264 units valued at over $24,066,168,185.51.

And the trend continues, with more companies trading even lower than the December 2009 closing figures. According to Steven Jackson writing recently in the Caribbean Business Report “The last time the market declined this much was in May 1996 at 12,936 points down 29 per cent year on year. But it is still better than in 1993 when the market lost 65 per cent of its value. It dipped from 32,421 points in January to 11,221 points by January 1994, losing over 90 per cent of its market capitalisation from J$1.45 billion to J$129.8 million according to Bank of Jamaica data.”

According to a leading brokerage firm in a published outlook on the economy for 2009, many of the quoted equity prices appear attractively priced relative to historical values. They also suggest that equity prices may well fall further before a rebound is seen, suggesting that even better bargains are on the horizon.

An interesting point raised by one analyst contact for this article was that “You don’t have to sell a lot of stock to impact price one way or the other.” Suggesting that small stock trades can and have impacted a company’s stock price, which is a concern for many and also implying an opportunity for manipulation. So the big question to be addressed by the Jamaica Stock Exchange is, should small trades be allowed to impact market prices. Businessuite understands that this concern has been raised by some companies. Donette Johnson, Senior Equities Trader at Jamaica Money Market Brokers, in responding to this point indicated that, “As a matter of fact, the JSE has attempted to address the perception of ‘manipulation’ on the market by introducing the average price being used as the closing price for the day. So no longer can brokers use 100 units at 11:59 to close stock prices at higher levels when indeed the market is trading at lower prices (this would give a misconception to investors and cause widespread disharmony among the investing public and even in some instances deter persons from even considering entering the market due to this perception and continued practice by brokers).”

But 2008 was a year when many of the companies listed on the Exchange saw the listed value of their stocks make drastic declines. Volumes traded was also on the high side, where in December for example Cable and Wireless Jamaica Ltd. was the volume leader with 503,461,572.00 units (21.93%) followed by Supreme Ventures Limited with 403,006,606 units (17.56%) and Jamaica Broilers Ltd. with 226,205,373 units (9.85%).

BOJ Impacts Market

According to financial analyst Fayval Williams, one of the contributing factors to the movement away from the stock market was the reversal in the local interest rate trend. Bank of Jamaica began raising interest rates in January, 2008.  Interest rates were adjusted upwards by 1% across all tenors of BOJ instruments and have been rising since then making money market instruments more attractive versus stocks. Donette Johnson Senior Equities Trader Jamaica Money Market Brokers Limited, however saw it differently. “I beg to differ on this point, as interest rates started trending up as soon as the credit crunch hit in September ’08 and financial houses were converting left, right and center in order to meet margin calls being made by overseas brokers. As a result of this pressure to convert to US$ this put added pressure on the J$. So the BOJ responded to stabilise that currency market by increasing local interest rates.”

Another factor argued by Fayval Williams was the weakening economy going forward as investors realized that the US recessions would spill over into Jamaica via remittance, tourism and bauxite sectors. This spelt a more uncertain economic environment and weaker profits for companies, not a good backdrop for stocks.

Other investors have also argued supporting Williams’s view that the high interest rate, initiated by the BOJ impacted the stock market last year as a result investors not able to realise the comparable 25% return on stock investments shifted by selling stocks and putting the money in high BOJ induced interest rates. It was even argued by some that the actions by investors looking forward were pre-emptive as they opted to move funds now rather than wait in an uncertain environment.

With the prevailing tight liquidity conditions on the international markets, the Government of Jamaica has increasingly turned to the local market to meet funding requirements.  This creates added impetus for further increases in interest rates locally and movement away from stocks. (Note: interest rates started to trend downwards sometime in March).

Marlene Street-Forrest General Manager of the Jamaica Stock Exchange was recently quoted as saying “Hardly any analyst would be able to say to you specifically when you are going to see a recovery. We are hoping it will rebound by next year but I have not applied any scientific basis.” (Did you ask Mrs. Street-Forrest for a guesstimate on the performance of the indices this calendar year end 2009?).

Street-Forrest blamed the ongoing decline in market performance on the global meltdown, high interest rates and its crippling spill over effect on company earnings in 2008.

“We have seen share prices at one of the lowest in recent times. This can be accounted for by the general bear market that we have seen that has continued over the last two years and has been coupled by the global financial crisis. Also, some of the companies financial returns posted lower than projected,” she said adding that now is the time to buy stocks.

The economic environment will affect the speed of recovery she stated, adding that the 2009/10 budgetary measures are being analysed to determine its effect on business.

The role of interest rates

“Interest rate reduction will play a factor in the demand for stocks. Next we are looking at the situation in the global arena and the recovery in overseas equity markets. Markets are based on confidence and the extent that investors feel there is more risk in the equities market then they will tend to shy away from it,” she argued.

As one high profile trader indicated “Stocks go up when companies are reporting rising profits but companies were reporting negative company profits going forward as people were buying and consuming less so this was also a contributing factor in my shifting funds away from stocks last year.”

Consumer Confidence Falls

The recently published Jamaica Chamber of Commerce (JCC) consumer confidence report said consumers judged the current state of the economy more negatively than the third quarter of 2008, these downbeat assessments did not cause pessimism about future economic prospects, It was reported that one third of all consumers at the close of 2008 felt that the economy had worsened, up from one in four at the start of the year. At the same time the proportion of consumers that anticipated better conditions remained largely unchanged, the report added.

However, Professor Richard Curtin, head of survey research unit at the University of Michigan, sees the optimism as somewhat surprising given the global economic slowdown and Jamaica’s dependence on tourism and remittances. “Consumers do not expect the kind of slowdown in the economy that I think is going to happen,”

Companies respond

As early as mid 2008 it was quietly reported that companies had already started to respond to the reduction in their income and profitability by laying off staff, seeking increased efficiencies in operation and purchases coupled with the overall use of assets. Going forward into 2009 and early 2010 financial institutions will see a further slowing down of their earnings as loan portfolios are not expected to grow at previous pace due to all the aforementioned factors. Manufacturing companies it is argued should benefit from moderation in prices, but will be adversely affected as consumers cut back on consumption due to lower disposable incomes.

Pessimistic Outlook Hides Value

“Wealth is created by owning businesses”.

Michael Lee Chin, NCB Group Chairman in a recently published article in the Caribbean Business Report recalls that about 10 years ago many Jamaican assets were snapped up by our Caribbean ‘brethren’ but with stock prices down all over the world he believes Jamaican companies now have an opportunity to buy back those companies and continue to make them profitable.

“If you are a foreign investor who bought a Jamaican asset 10 years ago, even though the asset as measured in Jamaican dollars has done well, by foreign currencies and hard assets that’s a different matter.

If you look at stock prices of the likes of Caribbean Cement, NCB, Grace, Guardian, they are now low. The question though is: who has money to acquire these assets? Who is liquid? Well, our pension funds are liquid. Our pension funds have gotten into the habit of investing in repos and government paper. Now that is not investing.

The pension managers are not optimising the wealth creation portion of their portfolios. Over the long haul, equities have always proven to be the best asset class, so now is a great time to be buying them because they are historically cheap.”

Where are they?

But where exactly are the bargain buys? Michelle Hirst, Research Manager at Stocks & Securities Ltd (SSL) thinks the following stocks are at bargain BUYS, plus just as important, strong business models, strong barriers to entry, strong management and above average long-term growth rates with a proven track record:

o   Pan-Jamaican Investment Trust

o   GraceKennedy

o   Salada Foods Jamaica Ltd

o   Jamaica Producers

o   Jamaica Broilers Group

o   Scotia Group Jamaica

o   Desnoes & Geddes

However, she continues “ we do think that local equity prices still have an inherent short-term (one year or less) downside risk of 20-30% from current price levels, dependent on how worse the credit crisis gets, recession, etc, where the DOW heads to, which we anticipate to be 6,600 points or less.

Therefore, although SSL does not advise clients to try and time the market, we recommend to cautiously BUY the above levels/positions and if we see for example Pan-Jam trade down to 18-20, we would recommend more aggressive purchasing here.

Also note another negative that always affects our market in the short-term is high interest rates as investors’ put funds to work in fixed income v. local equities. For the long-term YES the above equities show strong value at current prices meaning an investor to hold for 3 years or longer from “t”.”

According to one leading brokerage firm, unless there are clear signs of recovery in corporate profits, stability in the foreign exchange markets and lower interest rates, causing stock prices to move back up, investors will not go back to the equities market. They also suggest that if the local dollar continues to depreciate at its current pace, the possibility still exist that interest rates could go higher.

So with corporate profits expected to weaken in 2009 as further softening in consumer spending take place the projection is for flat market conditions in 2009.

For many this downward movement in stock prices was a direct response to the local and global economic crisis, the upward shift in interest rates and the continued fallout from the failed alternative investment schemes. But for the calculated few with cash, this is an opportunity to make a move on some bargain buys on Harbour Street. The expectation is that the present financial crisis will be over before the end of 2010 if not before, so buying these companies now and holding the stock until they move rapidly back up will give cash hoarding investor’s significant return on their investments. The big question now is other than institutional investors, who has that kind of cash? BM

Additional Source; Compiled from various published and internet sources

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Businessuite Markets

Jamaica Stock Exchange Group Recorded Strong Performance For The Third Quarter

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November 16, 2024

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Third Quarter Performance

• Net Profit after Tax of $194.9m was 255% greater than the prior year comparable quarter.
• Earnings per share of $0.28 cents reflected an increase of 250% compared to the corresponding quarter in 2023.
• The Return on Equity was 7.1% as against 2.3% in 2023 representing an improvement of 208.7%.

Income
Total Income for the JSEG of $746.4m, represents a $232m (45.1%) increase over the corresponding quarter of 2023. The increase in Income is attributed to Cess which increased by $138.6m (249.7%) when compared to prior year. Fee Income and eCampus increased over prior year by $94.7m (22%) and $3.4m (51.5%) respectively.

Expenses
Total Expenses of $495.9m increased by $76m (18.1%) when compared to the corresponding quarter in 2023. The main expenditure contributing to the increase are as follows:
• Staff Cost was above 2023 comparatives by $14.6m (7.2%). This was due to an 8% cost of living increase and new staff hires to facilitate anticipated growth and enhanced customer service delivery.
• Advertising and Promotion was above 2023 comparatives by $8.3m (50.3%). This is mainly due to additional activities aimed at stimulating growth within the markets.
• Net impairment loss on financial asset was above prior year by $10.7m (110.4%) due to the requirements of the expected credit loss model.

Net Profit
Net Profit after Tax of $194.9m represents an increase of $140m (255%) when compared to the profit of $54.9m for the corresponding period in 2023.

Financial Position
Total JSEG Assets as at September 30, 2024, of $3,365.3m, reflects an increase of $411.8m (13.9%), when compared to holdings as at September 30, 2023, due primarily to increase in Trade and Other Receivables and Government Securities Purchased Under Resale Agreement.

Total Equity of $2,739.8m as at September 30, 2024, reflects an increase of $331.3m (13.8%) and $120.8m (4.6%) over the comparable positions at the end of September 30, 2023, and December 31, 2023, respectively.

Revenue Reserves reflect an increase of $125.3m (7.4%) over the position as at December 31,2023, which is net of $239.1m paid to shareholders as dividend and the nine months’ profit.

Market Developments & Outlook
The Third Quarter performance has been particularly good. We anticipate that as interest rates trend down and other market turbulences subside, investors and companies will be more active in the market, which will result in improved performance. We have made significant stride in our diversification strategies, and this has and will continue to support us as we cope with geo-political unrest and other uncertainties in the economy that have impacted the market.

The JSEG will continue our effort at ensuring that our governance framework is strong and our risk mitigating measures which assists in driving sustainability are robust. We remain resolute in our commitment to maximize shareholders’ wealth, through the improvement in income and the management of our expenditure while providing strong support to stakeholders and the country at large.

Marlene J Street Forrest Managing Director Jamaica Stock Exchange Group
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Barita Reporting Treasury, Trading And Brokerage And Investment Banking Business Lines As Largest Contributors FY24 Performance

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November 16, 2024

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Net profit after tax (“NPAT”) for Q4 FY24 increased by 200% to $999 million, bringing NPAT for FY 2024 to $3.9 billion, 14% ahead of 2023. The improvements achieved in Q4 FY24 reflected the effects of management’s strategy to influence improvements in operating revenue through a focus on active balance sheet management, revenue diversification and expense management, in particular the management of funding costs.

Revenue growth in Q4 FY24 was both robust and well-distributed, led by an exceptional performance in our Treasury, Trading and Brokerage business line, which accounted for 56% of total revenue. This improvement was supported by the continuation of the uptrend in net interest income which rose 3% to $164 million relative to the comparable quarter in financial year 2023.

Directionally, this performance aligned with expectations, buttressed by a pivotal shift in the monetary policy stance of the Bank of Jamaica and the US Federal Reserve, both of which reduced their benchmark policy rates by 25 and 50 basis points respectively, during the fourth quarter. While an additional 25 basis point cut was announced at the end of September, to come into effect at the beginning of October, the BOJ had communicated a shift in its policy posture during Q3 FY24, to which the market began to react via the downward repricing of liabilities, by extension, benefitting our Net interest income. The balance of risks points towards continued improvement in our net interest income as our interest-bearing liabilities reprice with a more frequent cadence.

The macroeconomic landscape has also evolved favourably. Domestic inflation has moderated, now averaging within the BoJ’s target range for the last 6 months, and a similar moderation has taken hold in the U.S.A., even as the Federal Reserve continues to signal a cautious, data-driven approach to future rate cuts. While these developments suggest a more stable financial environment prospectively, potential global risks remain. Slowing growth in key global markets, coupled with geopolitical uncertainties and the impending change in administration following the recent election in the US could introduce volatility; however, Barita’s diversified revenue streams and resilient business model position us well to navigate these headwinds.

Operating Performance
Barita generated net operating revenues of $10.0 billion for FY24, representing an increase of 10% or $901 million relative to FY23. The increase was broadly distributed across our various business lines, with income from the treasury, trading and brokerage and investment banking business lines being the largest contributor.

Net profit was $3.9 billion for FY24, rising 14% relative to FY23. The resulting earnings per share (“EPS”) was $3.24, up 14%.

Quarterly Performance
For the quarter ended September 30, 2024, Barita registered revenue of $3.0 billion, $1.2 billion or 72% higher than Q4 FY23, driven by a material uplift in the Treasury, Trading and Brokerage business line during the quarter. In the quarter, Barita produced NPAT of $999 million, $667 million (200%) higher than the prior year. This resulted from the aforementioned higher operating revenue, partially offset by a 26% or $346 million increase in operating expenses. Profit before taxation amounted to $1.3 billion, which was an improvement of $888 million or 207% relative to the prior year.

Shareholders’ equity closed the period at $35.5 billion, an increase of $71 million, marginally higher than the $35.4 billion outturn at the end of FY23. This was driven by an improvement of $734 million in the fair value reserve, offsetting the decline in retained earnings due to dividends declared and paid during the year. Our capital levels remain resilient, with capital adequacy of 25.45% compared to the FSC’s early warning level of 14%.

Investment Strategy & Capital Management: Our Outlook
The outlook for monetary policy continues to evolve over the course of the fourth quarter of FY24, transitioning from the tightening cycle that has dominated the past two years. Both the Bank of Jamaica (BoJ) and the Federal Reserve, along with other major Central Banks, have reduced their policy rates amidst a sustained moderation in inflation. This shift is expected to lay the groundwork for a more favourable investment environment in the coming quarters.

In the United States, recent economic indicators suggest that the cooling effect of tight monetary conditions has begun to take hold. Core PCE inflation has moderated to 2.7% from a pandemic peak of 5.7% in February 2022. Unemployment remained low at 4.1% in September but has attracted more focus from policymakers at the Federal Reserve given the upward trend since the beginning of 2024. The U.S. economy delivered solid GDP growth of 3.0% in the second quarter of 2024, exceeding expectations, but leading indicators continue to suggest potential weakness ahead. Against this backdrop, the Fed opted for a 50-basis point rate cut in September 2024, bringing the federal funds target range to 4.75%-5.00%. Markets have since priced in the expectation of further rate cuts as inflation trends towards the Fed’s 2% target.

Locally, Jamaica has seen similar progress. Annual headline inflation in Jamaica stood at 5.7% as of September 2024, back within the BoJ’s target range following the uptick in August to 6.5% due to the impact of Hurricane Beryl. Moreover, the BoJ’s recent cumulative reduction of its policy rate by 50 basis points to 6.50% during the quarter, reflects growing confidence that average inflation will remain within the target range in the near term, supported by stable domestic demand, a relatively stable exchange rate, and the continued moderation of global commodity prices. Jamaica’s economy remains resilient, albeit with moderating growth in key goods-producing and service sectors.

Looking ahead, we anticipate a further shift toward more expansionary monetary conditions, both locally and globally, which will likely enhance our ability to optimize our balance sheet and improve the net interest margin. As funding costs stabilize and earning assets continue to reprice upward, we expect to see a positive impact on our financial performance. Additionally, more favourable market conditions should provide increased opportunities for trading gains, and we foresee a gradual acceleration in deal-making activity, further boosting revenue growth.

However, we remain cognizant of the risks that persist in the global macroeconomic environment. Slowing growth in key global markets, coupled with geopolitical uncertainties and the impending election in the world’s largest economy, may introduce volatility that could impact our investment activities. Despite these headwinds, we continue to prioritize the diversification of our revenue streams, particularly through our alternative investment platform, which includes our real estate ventures that are poised to deliver significant returns in the medium to long term.

In this context, prudent capital management remains central to our strategy. We will continue to ensure strict compliance with regulatory requirements while maintaining the flexibility to capitalize on emerging opportunities. Through these efforts, we are confident in our ability to navigate the evolving economic landscape and deliver sustained value to our shareholders.

Mark Myers, Chairman Barita Investments Limited (“Barita” or “the Group”)

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iCreate Transitioning From A Digital And Creative Training Company To A Diversified Investment Holding Company Kintyre Holdings.

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7 days ago

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November 16, 2024

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This quarter, Visual Vibe’s strong performance has been instrumental, reinforcing its pivotal role within Kintyre Holdings’ portfolio. Additionally, we are now unlocking value from our strategic investments in key properties, which are contributing positively to our income and strengthening our position as a dynamic investment holding company committed to delivering sustained value to our shareholders.

Change of Name & Purpose of the Business
At our Annual General Meeting (AGM) held in October 2024, the company officially rebranded from iCreate Limited to Kintyre Holdings (JA) Limited. This name change reflects our shift in purpose to an investment holding company, better aligning with our broader business strategy.

We are transitioning from a digital and creative training company to a diversified investment holding company.

This rebranding reflects our expanded focus across various sectors and strategic ventures, marking a significant shift in our corporate trajectory. Additionally, our purpose has been updated to reflect this new direction, positioning Kintyre Holdings as an investment holding company designed to foster sustainable growth across industries.

Financial Overview
Kintyre Holdings achieved strong growth in Q3 2024, driven by strategic investments and Visual Vibe’s expanding success in addition to gains from our investment assets.

Operational efficiency has improved, contributing to robust financial performance.

The Group is positioned for steady growth and profitability. Quarterly revenue reached $56.6 million, a 59.3% increase over Q3 2023, with year-to-date revenue at $128.4 million, up 57.5% year-over-year.

• REVENUE: Q3 2024 revenue reached JMD 55.1 million, up 59.3% from Q3 2023. Year-to-date revenue stands at JMD 123.4 million, showing a 57.5% increase over the same period in 2023, driven by strong performance in digital advertising.

• OPERATING PROFIT: Q3 2024 operating profit rose by 718.9%, from a loss of JMD 4.2M to a profit of JMD 26.2M. Year-to-date improved by 126.3%, from a
loss of JMD 126.4M to a profit of J$33.3M, driven by operational improvements and non-occurrence of one-off acquisition costs in 2023.

• Visual Vibe Operating Profit YTD 2024 vs YTD 2023: Year to date, Visual Vibe has posted a 46.8% increase in Operating Profits, bolstered by expanding its
network and introducing new advertising products like the backpack billboards and indoor digital screens.

• NET PROFIT: The Net profit for the parent company (Kintyre Holdings) Q3 2024 was JMD 21.4 million, an improvement from the loss of JMD 13.9 million recorded in Q3 2023.

• Year-to-date Net Profit stands at JMD 20.4 million, representing a significant improvement from the net loss of JMD 150.1 million in 2023. The positive shift in
net profit is attributed to the increased revenue from the DOOH advertising segment, greater control over operating expenses. YTD 2023 also had one-off acquisition related costs that weighed heavily on Net Profits.

• BALANCE SHEET: Total assets stood at JMD 564.7 million, down 19% year-over year, due to a reduction in goodwill and investments in assets. Total liabilities decreased by 40% to JMD 225.6 million, strengthening the company’s financial position.

Strategic Partnerships & New Business Initiatives
• New strategic partnerships for indoor advertising have been secured across the island, positioning Visual Vibe as a major player in the digital out-of-home advertising space.

• In addition, Kintyre Holdings has successfully partnered with SportsMax as their official out-of-home advertising partner for the 2024 Olympics. We showcased live streams of key races on our Hope Road, Spanish Town, and North Parade screens, reaching a wide audience and positioning our brand prominently during this high-profile event.
Physical and Technology Upgrades

• Visual Vibe upgraded its Manor Park screen to the latest technology, enhancing content quality and engagement.

• Yello Partnership: iCreate partnered with Yello to support SMEs by developing an affordable option for outdoor advertising, making high impact marketing accessible to smaller businesses across the region.

Impact of Hurricane Beryl
• Hurricane Beryl caused electrical outages and screen damage in remote areas, but we collaborated with JPS to use our screens for critical updates on rehabilitation efforts. This partnership minimized the storm’s impact and highlighted Visual Vibe’s role in community support during crises.

OUTLOOK
As we approach Q4 2024, Kintyre Holdings is focused on maintaining the growth momentum achieved in Q3. We are expanding our offerings, particularly through iCreate Institute’s new educational products, which will enhance our training services in the growing digital economy.

This expansion aligns with the increasing demand for innovative and agile upskilling
solutions.

Looking ahead, Kintyre Holdings is committed to operational efficiency, optimizing our assets, and driving cost-effective growth. We will continue to focus on executing our long-term strategy, ensuring profitability, and exploring new opportunities in key sectors to further strengthen our market position.

2024
Sustained Revenue Growth and Profitability:
• Target a 20% revenue increase in the second half of 2024 through expanded digital advertising and increased enrollments at iCreate Institute.
• Reach a net profit margin of 20% by optimizing operations and focusing on high margin business lines.

Expansion of Digital Advertising Network:
• Add 10 new indoor locations to our Digital Out-Of-Home (DOOH) network, leveraging partnerships that have been secured

Digital Transformation of iCreate Institute:
• Launch new courses and upgrade the learning management system to boost enrollment and enhance the student experience.

Strengthening Customer and Partner Relationships:
• Deepen existing partnerships, secure three new strategic partnerships, and achieve a 90% customer satisfaction rate by year-end.

Operational Efficiency and Cost Management:
• Reduce administrative expenses as a percentage of revenue from 60% to 50% by streamlining processes and adopting new technologies.

Corporate Social Responsibility and Community Engagement:
• Focus on creative talent development, digital literacy, sustainable business practices and promoting charitable causes.

Risk Management and Strategic Flexibility:
• Continue monitoring market trends, adjusting strategies as needed, and maintaining robust risk management to ensure stability and growth.

Tyrone Wilson Executive Chairman Kintyre Holdings (JA) Limited

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First Rock Real Estate Investments Registers Net Loss For Three Months Ended September 2024, Driven Primarily By Unrealised Foreign Exchange Losses

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November 16, 2024

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First Rock Real Estate Investments Limited registered a net loss attributable to Ordinary Shareholders for the three months ended September 30, 2024, totalling US$674,536, which yielded an Earnings Per Share (EPS) of negative US$0.002. Net loss attributable to Ordinary Shareholders for the nine months ended September 30, 2024, totalled US$1,453,640, which yielded an Earnings Per Share (EPS) of negative US$0.005.

The results were driven primarily by unrealised foreign exchange losses on translation of foreign currency denominated liabilities, which amounted to US$72,034 for the three months ended September 30, 2024 and US$275,170 for the nine months ended September 30, 2024. Additionally, interest expense amounted to US$118,839 for the three months ended September 30, 2024 and US$524,340 for the nine months ended September 30, 2024.

The Group’s financial performance continues to reflect the impact of the ongoing high-interest rate environment in Jamaica, which exerts downward pressure on property values, resulting in lower Property Income relative to prior year. Property Income totalled US$49,056 for the three months ended September 30, 2024 and US$1,916,074 for the nine months ended September 30, 2024.

To mitigate the impact on the bottom line from reduced revenues, the Group managed to reduce its overall Administrative & General expenses by 20% to US$2,274,250 for the nine months ended September 30, 2024, compared to the same period in the prior year. This cost management effort is part of our ongoing strategy to mitigate the impact of reduced revenues on the bottom line.

Outlook
The Group’s ongoing commitment to strategic growth remains steadfast as we navigate the headwinds that obtain in today’s real estate environment. By continuing to execute on our portfolio rebalancing strategy, which focuses on acquiring high-yield, income-generating properties across Latin America and the wider Caribbean region, we have built a resilient foundation that supports sustainable growth.

During the quarter our subsidiary, FirstRock Capital Cayman, entered into an agreement to acquire a fully tenanted investment property in Grand Cayman. As the largest acquisition in our portfolio, this property is poised to notably enhance our rental income stream, reinforcing our expansion across the region. Alongside this achievement, our two KFC locations in Costa Rica continue to deliver stable rental income under longterm lease agreements, with plans underway for additional site developments.

Looking ahead, we remain optimistic about finalizing additional acquisitions across the region, with several promising opportunities in advanced stages of negotiation. The Group remains committed to unlocking value through strategic investments, which we believe will yield substantial long-term benefits to our stakeholders.
Norman Reid J.P. Chairman First Rock Real Estate Investments Limited

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tTech Limited Announces Increased Share Acquisition by Simply Secure

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7 days ago

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November 16, 2024

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Edward Alexander Executive Chairman of tTech Limited announced that Simply Secure Limited increased its shareholding in tTech to 69.1%, representing 73,229,223 shares. The increased shareholding includes the purchase of 20,719,366 shares from Norman Chen and G. Christopher Reckord. The acquiring entity, Simply Secure Limited, is owned by Kevin Gordon and Rob Mayo-Smith. Messrs. Gordon and Mayo-Smith are also the owners of Simply Secure LLC, a Managed Security Services Provider based in Ft. Lauderdale, Florida.

The increased shareholding puts Simply Secure Limited over the 50% ownership threshold of the issued and outstanding ordinary shares of the company, requiring Simply Secure to extend an offer to all remaining tTech shareholders to purchase their shares subject to approval from the regulators. The tTech board will also provide an opinion on their view of the fairness of the offer price.

Norman Chen,

G. Christopher Reckord.

Following the sale of their shares, Messrs. Chen and Reckord will be resigning as Directors of tTech.

Chairman of the tTech Board, Edward Alexander, stated, “I would like to thank Norman and Chris for their service to tTech. Their contribution as executives and directors has enabled much of the success that tTech has enjoyed to date. We now look forward to the continued growth that is expected through the increased ownership in the company by Simply Secure.”

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