August 14, 2020
138 Student Living (138SL), for the nine months ended June 30, 2020, reported a 53% increase in Income to $996.51 million relative to the $651.16 million recorded for the corresponding nine months period the prior year. Other operating income also increased for the period under review, growing 225% to $90.32 million relative to $27.76 million a year earlier. Income for the third quarter rose 18% to $262.92 million (2019: $223.01 million), while other operating income climbed 523% to $70.76 million (2019: $11.35 million).
Administrative expenses decreased by 10% amounting to $506.64 million (2019: $560.98 million). As for the quarter, there was a 14% decrease to $149.06 million (2019: $173.89 million).
Thus, operating profit amounted to $580.19 million, an increase of 392% compared to $117.94 million that was reported for the comparative period the year prior. While for the third quarter, operating profit closed at $184.61 million (2018: $60.48 million), indicating a 205% rise year over year.
The company also reported finance cost of $195.33 million (2019: $209.91 million), a 7% decrease year on year. For the quarter, finance cost went down by 16% to close at $60.86 million (2019: $72.10 million).
Earnings before taxation for the nine months period amounted to $384.87 million compared with the loss of $91.97 million for similar period last year. Following tax credits of $16.91 million (2019 tax credit: $31.55 million), Net profit totalled $401.77 million, compared to a loss of $60.43 million recorded in 2019. Net profit for the third quarter amounted to $131.57 million relative to a net loss of $16.69 million booked in the previous comparable period.
Earnings per share (EPS) for the period amounted to $0.97 relative to loss per share of $0.15 a year earlier. The EPS for the quarter totalled $0.32 in contrast to a LPS of $0.04. The twelve-month trailing EPS $1.17. The number of shares used in this calculation was 414,500,000. As at August 13, 2020, the stock traded at $6.69.
Furthermore, the company stated that, “this result continues to be positively impacted by: (i) effective management of operating costs (primarily utilities) and (ii) variation claims relating to Irvine Hall. The latter item includes a variation claim for the full year 2019 as well as a first, second and third quarter claims for the year 2020.”
Balance Sheet at a Glance:
As at June 30, 2020, total assets increased by 26% to $11.27 billion (2019: $8.97 billion). This increase was primarily driven by a 28% increase in financial asset-service concession to $10.19 billion (2019: $7.96 billion). Receivables also contributed to the increase with a 14% growth to $552.28 million relative to $483.16 million recorded twelve months earlier.
Shareholders’ equity totalled $5.95 billion (2019: $3.26 billion) which resulted in a book value per share of $14.35 (2019: $7.86).
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein