May 11, 2022

Sagicor Real Estate XFUND Limited (XFUND), for the three months ended March 31, 2022, reported total revenue of $1.79 billion relative to $1.06 billion reported in 2021, a 68% increase year over year. XFUND stated, “The Group’s results were driven by an increase in hotel revenues, amidst the relaxation of local and international travel restrictions.”
Hotel revenue for the three months period increased to $1.72 billion v the $721.02 million reported in 2021. In their quarterly report, relating to their direct hotel operations, XFUND said, “DoubleTree Orlando (DTO) results strengthened in the first quarter ending March 2022. The segment recorded profits of $131.65 million, a $317.55 million improvement over the prior year’s loss. Occupancy levels increased by 8.4% since December 2021 and 21.3% since March 2021 to close at 91.60%. The segment also had an increase in hosting of large group conferences, while the average daily rates rose in-line with booking demand. These factors contributed to hotel revenues of $1.72 billion.”

Operating expenses rose by 56% to $1.56 billion (2021: $999.85 million). Of this:

• • Hotel expenses increased to $1.22 billion, up by 97% versus the $618.95 million in the year prior.
  • Depreciation expense assigned for the quarter $218.80 million (2021: $196.78 million) for the period under review. Interest expense for the period declined 44% to $91.99 million (2021: $164.51 million).
  • Other operating expenses increased to $29.56 million (2021: $19.61 million).

Owing to the recovery of hotel revenue, XFUND reported profit before tax of $225.49 million relative to a loss of $171.46 million for the three months prior. After paying taxes of $43.87 million (Q1 2021: $31.75 million), XFUND reported a net profit of $181.61 million compared to a net loss of $203.20 million in Q1 2021.

Net Profit attributable to shareholders for the three months amounted to $181.61 million vs a loss of $202.11 million in Q1 2021.

XFUND closed their first quarter with an EPS of $0.06. In Q1 of 2021, XFUND reported a loss per share (LPS) of $0.09. The trailing twelve-month EPS is $0.32 and the number of shares used in our calculations was 2,243,005,125. As at May 11, 2022, the stock traded at $8.33 with a P/E of 25.83 and a book value per share of $7.46.

Balance Sheet Highlights:

The Company, as at March 31, 2022, recorded total assets of $31.58 billion, a 5% increase when compared to $30.06 billion reported in Q1 2021. The increase was primarily due to a $1.07 billion increase in ‘Cash Resources’ which closed the period at $2.61 billion (2021: $1.55 billion).

Total Shareholders’ Equity as at March 31, 2022 closed at $16.73 billion, a 19% increase from the $14.08 billion reported for the corresponding period last year; resulting in a book value per share of approximately $7.46 (2021: $6.28). Notably, XFUND’s equity reserves has grown by 71% to $4.57 billion from $2.67 billion in Q1 of 2021 of 2021 owing to gains seen during the Q4 period of 2021.

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