November 11, 2022
138 Student Living (138SL)
Unaudited financials for the twelve months ended September 30, 2022:-
138SL’s revenue increased by 38% to $1.19 billion relative to the $860.48 million recorded for the corresponding period the year prior. Revenue for the fourth quarter amounted to $294.81 million (2021: $184.11 million).
Revenue consists of “Income” and “Other Income”. Income for the twelve months period increased 46% to 1.19 billion (2021: $813.21 million) while Other Income fell 93% to $3.14 million (2021: $47.27 million). For the fourth quarter, the company recorded Income of $301.27 million (2021: $178.97 million) and an ”Other operating loss” of $6.46 million (Operating income 2021: $5.15 million).
Administrative expenses increased by 16% for the period amounting to $489.84 million (2021: $422.02 million). As for the quarter, there was a 56% decline to $88.95 million versus $202.71 million reported in the prior year’s corresponding period.
Operating profit for the twelve months period ended September 30, 2022 closed at $698.54 million, an increase of 59% compared to $438.46 million that was recorded for the comparative period in 2021. Operating profit for the quarter closed at $205.86 million (Operating Loss 2021: $18.60 million).
The Company reported finance costs of $363.49 million (2021: $242.21 million), a 50% increase year over year. For the quarter, finance cost increased 40% to close at $91.56 million (2021: $65.56 million).
Profit before taxation for the year ended amounted to $335.05 million compared with a profit before taxation of $196.25 million for the similar period last year. For the quarter, profit before taxation amounted $114.30 million (Loss before taxation 2021: $84.15 million).
Following tax credits of $29.87 million (2021 tax credit: $48.31 million), net profit totalled $364.92 million versus a net profit of $244.56 million recorded in 2021. 138SL’s net profit for the quarter closed at $126.26 million relative to a net loss of $55.26 million the prior year.
Total comprehensive income for the twelve months ended September 30, 2022 amounted to $266.78 million relative to a loss of $111.26 million last year. For the quarter, total comprehensive income amounted to $28.11 million versus a total comprehensive loss of $411.08 million the prior year.
Earnings per share (EPS) for the twelve months ended September 30, 2022 amounted to 0.88 relative to an earning per share of $0.59 a year earlier. The EPS for the quarter totalled $0.31 relative to an Loss per share (LPS) of $0.13. The number of shares used in this calculation was 414,500,000. As at November 11, 2022, the stock traded at $4.50 with a corresponding P/E of 5.11 times.
138SL highlighted that, “The lifting of the Covid-19 restrictions and the subsequent return to face-to-face classes has resulted in a return to normalcy in operations with average occupancy at the end of the quarter peaking at 90%. Under the Concession Agreement with the University of the West Indies, Mona (UWI), 138 SL is guaranteed a 90% occupancy. Our expectation is that this trend will continue as students seek for quality accommodation in a secured environment. As applications for student long-term accommodations are still being received, we expect to be at full capacity for the second semester beginning January 2023.”
Balance Sheet at a Glance:
As at September 30, 2022, Total assets decreased by 3% to $9.85 billion (2021: $10.14 billion). This decrease was primarily driven by ‘Receivables’ which closed at $903.29 million (2021: $1.28 billion). Tempered by ‘Cash and cash equivalents’ which closed at $170.44 million (2021: $38.94 million).
Shareholders’ equity totalled $4.69 billion (2021: $4.42 billion) which resulted in a book value per share of $11.31 (2021: $10.67).
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