January 2, 2024
Eppley Caribbean Property Fund Limited SCC (CPFV) for the year ended September 30, 2023, reported a 62% increase in Total Investment Income totaling BDS$21.54 million compared to BDS$13.33 million in the corresponding period last year. Total Investment Income for the fourth quarter had a 172% increase to close at BDS$11.46 million compared to BDS$4.22 million for the comparable quarter of 2022.
Interest Income and other income amounted to BDS$831,540 (2022: BDS$762,157), this represents an increase of 9% year over year. Consequently, fair value losses on investment property increased by 518% to BDS$13.44 million compared to BDS$2.17 million for the year ended September 30, 2022. The company booked fair value losses on investment property of BDS$9.74 million for the fourth quarter versus BDS$1.05 million reported for the similar quarter of 2022.
Interest expenses increased by 21% to close at BDS$1.55 million (2022: BDS$1.28 million), while Fund management fees increased by 7% from BDS$757,623 in 2022 to BDS$809,965 in the period under review. As a result, operating expenditure for the year amounted to BDS$3.82 million, an 11% increase relative to BDS$3.45 million reported in 2022.
Profit before tax for the year amounted to BDS$17.71 million, a 79% increase relative to BDS$9.88 million reported in 2022. Profit before tax for the fourth quarter amounted to BDS$10.59 million (2022: BDS$3.31 million). Taxation totaled BDS$236,400, a 36% decrease from the corresponding period last year. (2022: BDS$372,060).
Net profit for the year end amounted to BDS$17.48 million, an 84% increase from the BDS$9.51 million reported in 2022. For the fourth quarter, Net profit was BDS$10.53 million (2022: BDS$3.09 million). The Company highlighted, “The increase in net profit is predominantly due to the fair value gains on assets based on the independent valuation exercise completed as at September 2023.”
Additionally, “The Value Fund continues to own and manage a portfolio of high-quality, commercial real estate in line with its strategic vision of a diversified, regional, real estate fund.”
Earnings Per Share for the year end amounted to BDS$0.13 (2022: EPS: BDS$0.07), while Earnings Per Share for the quarter totaled BDS$0.08 (2022: EPS: BDS$0.02). The number of shares used in these calculations was 135,519,820.
Notably, CPFV’s stock price closed the trading period on December 29, 2023, at a price of J$39.47 with a corresponding P/E ratio of 3.94x.
Balance Sheet Highlights
The company’s assets totaled BDS$157.91 million (2022: BDS$132.66 million). This resulted from a 29% increase in ‘investment properties’ closing at BDS$98.17 million.
Shareholder’s equity was BDS$119.82 million (2022: BDS$106.65 million), representing a book value per share of BDS$0.88 (2022: BDS$0.78).
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