November 15, 2021
In Barbados dollars (except where it is indicated otherwise):
Eppley Caribbean Property Fund Limited (CPFV), for the year ended September 30, 2021 reported net rental income of $4 million (2020: $2.95 million), a 36% increase. In addition, share of profit of investments accounted for using the equity method amounted to $3.52 million relative to loss of $2.53 million in 2020.
Fair value gain on investment property closed the year at $941,410 versus gain of $3.41 million twelve months earlier.
Interest income amounted to $703,549 versus $761,194 booked for the previous year. Other income rose to close at $23,595 versus $666 last year.
As such, total investment income surged to total $9.19 million (2020: $4.58 million).
Total operating expenses amounted to $3.17 million (2020: $2.53 million). Total operating expenses can be broken down as follows:
o Interest expenses totalled to $1.04 million (2020: $478,827).
o Foreign exchange gain amounted to $46,329 (2020: $201,410).
o Fund management fees was $722,534 compared to $652,643 booked for 2020.
o Professional fees totalled $611,166 (2020: $422,560).
o Directors and subcommittee fees closed at $3,320 (2020: $3,200).
o Office and administrative fees went up to $22,282 (2020: $62,173).
o Impairment charge for receivables surged to $3,572 (2020: $57,676).
o Investment advisor fees closed the year at $722,534 (2020: $652,643).
Profit before tax amounted to $6.02 million (2020: $2.05 million) for the year under review.
Consequently, this resulted in net profit for the year of $5.76 million versus a net profit of $1.89 million booked in the previous year after a taxation charge of $259,484 (2020: $162,814). Profits attributable to cellular property fund shareholders amounted to $5.75 million compared to a profit of $1.89 million booked last year. For the quarter, profits attributable to cellular property fund shareholders amounted to $3.11 million compared to a profit of $125,856 in 2020.
Total comprehensive income for the year closed at $7.24 million compared to an income of $1.72 million twelve months earlier. Whereas, for the quarter, total comprehensive income closed at $4.82 million versus the total comprehensive loss of $180,245 booked in 2020.
Earnings per share for the year ended September 30, 2021 totalled $0.042 compared to EPS of $0.014 for the corresponding period in 2020. For the quarter, EPS amounted to $0.023 (2020: $0.001). The total amount of shares outstanding used for this calculation was 136,998,472 units. CPFV closed the trading period at J$42.91 on November 15, 2021 with a corresponding P/E ratio of 13.85 times.
CPFV mentioned that, “This significant increase in net profit is largely reflective of added income from recently acquired properties, net growth in the fair value of newly acquired assets, and strategic management of the Fund’s operational efficiency.”
Management noted that, “Following this year’s acquisitions, the Value Fund’s geographic footprint now spans across three of the largest English-speaking countries in the Caribbean, being Jamaica, Barbados and Trinidad & Tobago. As the operating environment improves and the Fund realizes the full benefit of recent acquisitions, we expect to deliver continued growth in FFO attributable to shareholders.”
Balance Sheet Highlights:
As at September 30, 2021, total assets amounted to $126.97 million, 17% more than last year’s $108.90 million in 2020. This was attributed to a rise in ‘Investments in associated companies and joint arrangements’ which closed the period at $31.21 million (2020: $17.29 million) and ‘Investments’ which amounted to $73.81 million (2020: $62.82 million).
CPFV, as at September 2021, booked total shareholders’ funds of $100.69 million (2020: $94.85 million), which translated into a net asset value per share of $0.74 (2020: $0.69).
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