August 15, 2022
Reported in Barbados Dollars unless otherwise indicated:
Eppley Caribbean Property Fund Limited (CPFV), for the nine months ended June 30, 2022 reported net rental income of $3.43 million (2021: $2.98 million), a 15% increase year over year. In addition, share of profit of investments accounted for using the equity method rose from $1.42 million in 2021 to $4 million for the nine months ended June 2022. CPFV noted, “The Value Fund continues to experience significant improvements in all key financial performance metrics. The improved performance was driven by the strength of the Fund’s operations and quality of its underlying assets, further validating key strategic initiatives executed by management in recent years.”
Fair value gains on investment property amounted to $1.12 million relative to a gains of $136,298 in 2021.
Interest income amounted to $553,416 versus $513,372 booked for the corresponding nine months last year. No Other income was reported for the nine months ended June 2022 (2021: $2,072).
Total investment income increased to a total of $9.12 million (2021: $5.05 million). For the third quarter ended June 30, 2022, total investment income amounted to $3.31 million (2021: 1.79 million).
Total operating expenses amounted to $2.55 million (2021: $2.29 million). Total operating expenses can be broken down as follows:
- Interest expenses totalled $947,465 (2021: $692,260).
- Fund management fees rose 4% to $562,639 compared to $540,214 booked for 2021 nine months.
- Professional fees totalled $353,268 (2021: $307,723).
- Directors and subcommittee fees closed at $2,520 (2021: $2,490).
- Office and administrative fees declined to $12,443 versus $14,943 reported in 2021.
- Investment advisor fees totalled $562,639 (2021: $540,214).
Total operating expense for the third quarter ended June 30, 2022 amounted to $881,181 (2021: $772,103).
Profit before tax for the nine months ended June 30, 2022 closed at $6.57 million (2021: $2.76 million). Whereas, profit before tax for the third quarter ended June 30, 2022 totalled $2.43 million (2021: $1.02 million).
Profits attributable to Cellular property fund shareholders for the nine months amounted to $6.42 million compared to $2.64 million booked prior corresponding period. While, profit attributable to Cellular property fund shareholders for the third quarter ended June 30, 2022 totalled $2.39 million (2021: $1.01 million).
Consequently, total comprehensive income for the period closed at $6.42 million compared to $2.64 million reported for 2021’s corresponding period. Total comprehensive income for the third quarter ended June 30, 2022 totalled $2.39 million (2021: $1.01 million).
Earnings per share for the nine months ended June 30, 2022 totalled 4.71 cents compared to EPS of 1.93 cents for the corresponding period in 2021. The third quarter’s EPS amounted to 1.75 cent (2021: 0.74 cent). Trailing EPS amounted to 6.99 cents. The total amount of shares outstanding used for this calculation was 122,181,628 units. CPFV closed the trading period at J$38.40 on August 15, 2022, with a corresponding P/E ratio of 7.26 times.
The Company stated, “Net Operating Income (NOI) attributable to shareholders, a performance metric that measures the Fund’s share of rental income less its operating expenses, grew 40% to $4.4 million for the nine-month period ended June 30, 2022. The increase is largely reflective of added income generated from recent acquisitions and careful management of the Fund’s operational efficiency.”
Balance Sheet Highlights:
As at June 30, 2022, total assets amounted to $130.36 million, 3% more than the $126.91 million reported in 2021. This was attributed to a rise in ‘Investment securities’ which closed the period at $10.45 million (2021: nil). This was offset by a decrease in ‘Cash and Cash Equivalents’ which closed at $8.17 million (2021: $17.85 million).
CPFV, as at June 30, 2022, booked total shareholders’ funds of $103.43 million (2021: $95.90 million), which translated into a net asset value per share of $0.76 (2021: $0.70).
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