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

For More Information CLICK HERE

VM Group has entered into a partnership agreement with the Private Sector Organization of Jamaica (PSOJ) to convert its 39 Hope Road offices into a new commercial hub with rental spaces, from which it will generate additional revenue.

The development will consist of four upper levels with a lobby area, basement and ground floor parking. Additionally, a rooftop amenity area will be available for tenants to use for a variety of activities.

The redevelopment of the property is estimated to cost $1 billion. VMWM will provide the financing for this landmark development jointly with VM Pensions Management.

John Mahfood Chief Executive Officer and Director Jamaican Teas Limited has released the following report for  the Second Quarter Results to March 2024

Jamaican Teas Limited is pleased to report growth of $218m in its adjusted profits before tax for the half year to 31 March 2024 from $13.4m a year ago to $231 million this year before deducting a nonrecurrent loss of $92.49 million from the sale of its Bell Road factory in March 2024.

Manufacturing Division | Manufacturing revenues increased 11 percent in the quarter and 8 percent for the half year driven principally by a strong performance in the domestic market where revenues grew by 8 percent in the quarter and 18 percent for the half year. This performance was strongly influenced by the appointment of Wisynco as our new distributer for Jamaica on November 1, 2023. Export sales grew by 5 percent in the quarter and 3 percent for the half year.

Real Estate Division | No real estate sales were booked in the year ago quarter or half year as construction work on our new studios at Belvedere Road, in Kingston was still underway up to March 2023. Construction of this complex finished in Sept 2023 and sales of 7 units have been completed in the year to date.

Retail Division | For this quarter, retail revenues increased 11 per cent. This reflects a continuation of the accelerated revenue growth we have seen in our store in recent months. Our retailing profits increased by approximately 8 percent for the half year.

Investment Division | During this quarter, there was a reversal of the declines in the prices of stocks listed on the Jamaica Stock Exchange. The prices of stocks listed on USA Stock Exchanges continued to increase in the quarter. This resulted in significant unrealised gains in our overseas investments without a repeat of the offsetting investment losses on the local portfolio experienced in the year ago period.

Following from this, QWI Investments Limited (QWI) reported a pre-tax profit of $74 million for the quarter, a $102m reversal from their year ago loss of $28m. This builds on the positive trend seen in the first quarter, and resulted in a $238 million increase in the group’s total investment income for the half year.

REVENUES

JTL’s total revenues for the quarter increased by $134 million or 20 per cent overall from $666 million a year ago to $800 million this quarter. $86m of this increase reflected the absence of real estate revenues in the year ago period, as noted above. The half year revenues reflected a similar trend.
The increases shown in Investment Income mainly reflect the realized and unrealized overseas investment gains of QWI, partially offset by slightly lower dividend income and increased foreign exchange losses compared with the year ago period.

EXPENSES

Cost of sales moved from 78 percent of revenues a year ago to 80 percent this quarter. This apparently adverse trend is a reflection of low margin real estate sales this year versus no real estate sales a year ago. Adjusting for this year’s real estate sales, the gross profits of the manufacturing and retail divisions actually improved from 22.0 per cent to 22.5 percent in the quarter. The year to date gross profits showed a similar improvement.

A loss before deferred tax of $92.49 million was recorded on the sale of the Bell Road factory in March 2024. This is a non-recurrent expense and compares with the net revaluation surplus of $257.25 million recorded in prior financial years on the revaluation of this building between its acquisition and it’s disposal in March 2024. This surplus was forms part of the revaluation reserves in the company’s equity capital.

During the quarter, overhead costs increased slightly. For the year to date, the increase in overhead costs largely reflected increased costs for insurance and professional fees. The increase in interest expense during the quarter resulted from higher interest rates as well as increased short term borrowings by Jamaican Teas.

NET PROFIT

Net profit attributable to Jamaican Teas for the quarter after adjusting for the loss on the sale of the Bell Road factory was $73 million, a sharp increase from the $59 million profit in the same quarter of the previous year. Adjusted net earnings per share was 3.39 cents (2022/23 – earnings of 2.7 cents). The unadjusted net loss attributable to Jamaican Teas for the quarter was $18.99 million or 0.9 cents per share.

For the year to date, net profit attributable to Jamaican Teas after adjusting for the loss on the sale of the Bell Road factory was $114 million, a sharp increase from the $86 million profit in the previous year.

Adjusted earnings per share was 5.3 cents (2022/23 – earnings of 4.0 cents). The unadjusted Net profit attributable to Jamaican Teas for the year to date was $21.67 million or 0.9 cents per share.

FINANCIAL POSITION

The net decrease in fixed assets of $162 million since September 2023 is due mainly to the sale of the Bell Road factory building in March 2024 offset, in part, by the purchase of, and capital improvements and machinery purchases at, the Temple Hall factory.

The company moved its spice and dry pack production from leased premises at Montgomery Avenue to our Temple Hall factory in Feb 2024 and the tea division will be relocated during the third quarter of this financial year reuniting all the manufacturing activities into one facility.

The reduction in Investment properties since September 2023 reflects the sale of one of our buildings at Harbour Street, Kingston during the period. Efforts are continuing to sell the two remaining buildings at Harbour Street along with two other investment properties.

Housing inventories fell by $173 million due to the sale of the first seven units at Belvedere, while other inventories and receivables increased during the half year reflecting the increased scale of operations in our manufacturing activities.

OUTLOOK

In the half year to March 31 2024, the group has:
-purchased a new factory at Temple Hall and sold its Bell Road facility (subject to a short term lease back)
-transferred its manufacturing activities from Jamaican Teas Limited to Caribbean Dreams Foods Ltd, its wholly owned subsidiary
-installed two new co-General Managers at its manufacturing Division
-acquired new spice packing machinery that will facilitate a tripling of Saizon production adding up to $80 million in annual gross profit
-begun the process of exiting its real estate activities

In the next 6 months the group will complete its transfer from Bell Road to Temple Hall and continue the divestment of its real estate holdings. This is expected to make the group more cost efficient, better focused and more profitable. While many of the geopolitical developments taking place around the world are discouraging, the group is optimistic about its future.

For More Information CLICK HERE

Chairman of the Jamaica Social Investment Fund (JSIF), Dr. Wayne Henry, says the construction industry is one of the key growth pillars of the economy.

“This is evident in the Sector Plan for Construction, one of the 31 sector plans that form the foundation for the Vision 2030 Jamaica – National Development Plan,” he noted.

Dr. Henry, who was addressing a recent JSIF contractors’ seminar at the Courtyard by Marriott in New Kingston, noted that at the time of drafting Vision 2030, it was envisioned that the country would develop a dynamic and internationally competitive construction sector, with the flexibility and creativity to adopt new construction technologies that may emerge over the long-term.

As such, he said, it is imperative that contractors remain on the cutting edge of construction innovation through important knowledge exchanges.

The seminar on project planning and execution was targeted at contractors who wish to bid for JSIF’s proposals on national infrastructure projects.

It provided an avenue for participants to learn more about the requisite construction practices and procurement guidelines.

Managing Director of the JSIF, Omar Sweeney, in his remarks, said that the construction industry is a major economic driver.

Managing Director of the JSIF, Omar Sweeney

He said that the sector is a vital component of the country’s development and infrastructure growth and has a high demand in the areas of residential and commercial spaces.

Noting the critical link with other sectors, Mr. Sweeney said that the success of any building project relies on collaboration among key stakeholders such as engineers, architects and quantity surveyors.

“Hence, it is imperative to foster open communication and continuous dialogue through effective fora such as this seminar,” he noted.

Mr. Sweeney said that for over 27 years, JSIF has maintained its position as a leading project management agency and has consistently implemented hundreds of solid infrastructure development projects.

He noted that the entity executed projects amounting to more than three billion dollars during a one-year period.

These are largely funded by the Government of Jamaica, World Bank, The European Union and the Caribbean Development Bank, Mr. Sweeney noted.

JSIF is an agency of the Government of Jamaica with portfolio responsibility for the implementation of several major infrastructure projects across Jamaica, predominantly in vulnerable communities.

By: BRITNEY STEVENS, JIS March 18, 2024

Photo JIS File

Ian Parsard Chairman For 138 Student Living Jamaica Limited Has Released The Following Unaudited Financial Statements For The Twelve Months Ended 30 September 2023

For the twelve months ended September 30, 2023, short-term rental income contributed J$132.19 million or 9% of total revenue. This reflects a 39% increase relative to the similar period ended September 30, 2022. This revenue was generated primarily from sporting and UWI affiliated groups. Accordingly, the Company continues to deepen its focus on the group booking segment which is showing buoyant demand.

The Group recorded J$94.43 million in other operating income, an increase of J$80.54 million which was derived from interest charged on receivables. Other operating income represented 7% of total revenue.

The Group’s enhanced revenue performance resulted in an operating profit of J$703.17 million for the twelve months ended September 2023 from J$698.54 million in the corresponding prior period. Despite the 37% increase in administrative expenses, which included $12.09 million relating to the Additional Public Offering,

138SL’s efficiency ratio improved from 42% to 49% year over year. Profit before taxation increased to J$342.30 million for the twelve-month period ended September 2023 when compared to J$335.05 million for the twelve-month period ended in September 2022.

Profit per stock unit for the twelve months increased to $0.80 compared to $0.77 for the twelve-month period to 30 September 2022, a 4% increase.
Demonstrative of the Board of Directors intention to return value to its Ordinary Shareholders, 138SL paid its first dividend in February 2023 of J$0.13 per share.

Shareholders’ equity increased by J$310.50 million to end the fourth quarter of 2023 at J$4.87 billion. This increase was primarily driven by the increase in retained earnings which reflected the J$53.89 million dividend payment deducted from the J$330.91 million net profit.

For more information CLICK THIS LINK