138SL reports nine months net profit of $401.77 million

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).


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