May 16, 2023
FirstRock Real Estate Investments Limited (FIRSTROCK) for the three months ended March 31, 2023:
Net operating income declined 68% to US$1.20 million (2022: US$3.78 million) following a 75% decline in property income to US$955,635 (2022: US$3.82 million). The contraction was due to the reported US$869,179 in realised and unrealised gain/(loss) on investment properties, compared to US$3.65 million in 2022. Rental income for the quarter fell 50% to US$86,456 versus US$173,930 recorded for March 2022. Management noted that a strong pipeline of commercial opportunities throughout the region, including a commercial development in Kingston 5, Jamaica, will drive the Group’s property income and help to generate positive net cashflows in the short to medium term.
Total expenses declined 39% to US$997,805 (2022: US$1.62 million). Notably, there was no performance based fee for the quarter (2022: US$717,700). Additionally, administrative expenses rose 19% to date, while expected credit losses fell 53% from US$64,522 in 2022 to US$30,011 for March 2023.
Consequently, operating profit declined 90% to US$206,484 (2022: US$2.16 million).
Net profit declined 90% to US$204.97 million (2022: US$2.15 million). Net profit attributable to shareholders of the parent declined 90% to US$204,973 (2022: US$2.15 million).
Earnings per share (EPS) amounted to US$0.001 (2022: US$0.008). The trailing twelve-month EPS amounted to US$0.007. The number of shares used in the calculations is 286,025,318. FIRSTROCKJMD’s stock price closed the trading period on May 15, 2023 at J$10.90 with a corresponding P/E ratio of 9.83x while FIRSTROCKUSD’s stock price closed at J$0.0619.
Balance Sheet Highlights:
Total assets as at March 31, 2023 increased 13% to US$61.83 million (2022: US$54.86 million). This movement was primarily due to a 43% increase in ‘Current development in progress’ to US$19.07 million (2022: US$13.36 million).
Shareholders’ equity as at March 31, 2023 increased 5% to US$36.14 billion (2022: US$34.58 million) resulting in a book value per share of US$0.13 (2022: US$0.12).
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