Nov 2014 Financial News

Sagicor X Fund posts $681-m net profit

Nov 12, 2014

SAGICOR Real Estate X Fund anticipates steady growth in its outlook amid posting $681-million net profit for its nine-months of operation as a listed company.

The earnings of the company continue to increase with each subsequent quarter since listing late last year.

"The Jamaican economy has been and continues to transform as it lays the platform for future sustainable economic growth. X Fund is also committed to enabling such growth for both the country and stakeholders," Chairman Richard Byles said in notes accompanying the just-released financials.

The company invests in the Sigma Real Estate portfolio led by the Jewel Resorts brand of hotels. The fund earned net profit of $410 million for its second quarter ending June 2014 and $242 million for its initial quarter. Year-over-year comparisons are not yet available as the company went public last November.

The company raised $1.5 billion following an initial public offering of 200 million ordinary shares (or 20 per cent of the company). Funds raised in part went to develop a waterpark at Jewel Runaway Bay Beach and Golf Resort.

The X Fund is 67.71 per cent owned by the Sagicor Pooled Pension Funds Limited, which is administered by Sagicor Life Jamaica. Its main business activity is to invest in real estate, which includes three hotels: Jewel Paradise Cove Beach Resort and Spa, Jewel Runaway Bay Beach and Golf Resort, and Jewel Dunn's River Beach Resort and Spa.

Its portfolio also includes non-hotel properties -- totalling nine industrial and warehouse, as well as office and retail business properties, which comprise commercial entities such as the R Danny Williams building, the Sagicor Sigma building in New Kingston, and industrial parks on Marcus Garvey Drive in Kingston and in Freeport, Montego Bay.

"The demand for business processing outsourcing facilities continues to drive the improvement in the Jamaican commercial rental sector for rental space above 10,000 square feet, while small independent entrepreneurs and professionals are demanding space in the range of 1,000 to 2,000 square feet. Energy efficiency is a key initiative in enhancing profitability and competitiveness and benefits are accruing for both property owner and tenants in the form of higher net rental yields and lower accommodation cost respectively," the company said in the financials.

Source:
BY STEVEN JACKSON Business reporter jacksons@jamaicaobserver.com
Jamaica Observer
Wednesday November 12, 2014

http://www.jamaicaobserver.com/business/Sagicor-X-Fund-posts--681-m-net-profit_17926805