Property income fell four per cent for Pan-Jamaican Investment Trust Limited for the year ended December 31, 2015, declining to $1.48 billion from $1.55 billion. However the group’s associated and joint venture companies buttressed profit which climbed 12 per cent to $3.19 billion compared to $2.843 billion in 2014.
The share of results of associated and joint venture companies increased by 20 per cent or $533 million to $3.22 billion, this compared to $2.69 billion in 2014. Of the amount $3.05 billion was generated by Sagicor compared to $2.66 billion in 2014. PanJam has a 31.5 per cent stake in Sagicor.
Sagicor’s grew net profit to $9.79 billion, an increase of 15 per cent year over year based on strong banking and insurance results.
PanJam had at year end a 20 per cent interest in Hardware & Lumber Limited. H&L’s profit declined to $164 million compared to $217 million in 2014 a reduction linked to increasing operating expense and reduction in other income. At the end of 2015 the majority interest in H&L was purchased at a price of $18.50 per share and PanJam accepted the takeover offer.
From its 20 per cent stake in adventure tours company Chukka Caribbean Adventures Limited the group earned $48 million in 2015, versus $25 million in the prior year.
PanJam owns 50 per cent of Mavis Bank Coffee Factory Limited which is a joint venture with Jamaica Producers Group Limited. The processor and seller of Jamaica Blue Mountain coffee provided profit share of $48 million, compared to a loss of $40 million in 2014.
From its 25 per cent interest in New Castle Company Limited who are owners of the Walkerswood and Busha Browne brands, PanJam received $61 million compared to $13 million in 2014. PanJam noted that New Castle continues to expand its export and distribution of the Walkerswood, Busha Browne and Jamaica Joe lines of sauces and seasonings principally as result of new distribution arrangements in the USA.
The group’s holds a 32 per cent interest in Caribe Hospitality Jamaica Limited , developers of the Marriott Courtyard hotel in New Kingston which opened in December 2015.
PanJam also holds a 50 per cent interest in Kingchurch Property Holdings Limited, the property developer responsible for refurbishing the former Oceana hotel in downtown Kingston.
The group in its financial report for the year ended noted the departure in 2015 of a prominent New Kingston tenant who moved into their own building. PanJam said it is seeking a high quality replacement.
The portfolio benefitted from property revaluation gains of $229 million and contributing of $568 million to profit.
Investment income for Panjam fell to of $206 million from $257 million in 2014, and its investment management segment posted an operating loss of $91 million versus last year’s loss of $9 million.
Slower Jamaican dollar devaluation relative reduced foreign exchange translation gains . The company also saw declines in dividend income. Group results were also impacted by unrealized fair value losses on Sagicor Group Jamaica Limited available-for-sale securities arising in the latter half of 2015, reflecting volatility in global bond prices.
PanJam said direct costs of property management fell from $651 million to $562 million, primarily as a result of reduced utility costs, but staff costs increased by $125 million, driven by an increase of $92 million in pension costs. Finance costs fell to $496 million in 2015 from $507 million in 2014.
Panjam grew assets in 2015 to $28.0 billion, compared to $26.4 billion at December 31, 2014. Earnings per stock unit of $15.19 for the year compared to$13.55 for 2014. Book value per stock unit of $103.68 at year end was an increase on $100.81 per unit at the end of 2014.