November 17, 2022
Eppley Caribbean Property Fund Limited (CPFV)
For the year ended September 30, 2022:-
Reported in Barbados Dollars unless otherwise indicated:
Eppley Caribbean Property Fund Limited (CPFV), for the year ended September 30, 2022 reported net rental income of $4.61 million (2021: $4 million), a 15% increase year over year. In addition, share of profit of investments accounted for using the equity method rose from $3.52 million in 2021 to $5.78 million for the year ended September 2022. CPFV noted, “The strength and resilience of our underlying assets continue to drive consistent growth in performance, further validating our key strategic initiatives of scale and diversification.”
Fair value gains on investment property amounted to $2.17 million relative to a gains of $941,410 in 2021.
Interest income amounted to $762,157 versus $703,549 booked for the corresponding year last year. No Other income was reported for the year ended September 2022 (2021: $23,595).
Total investment income increased to a total of $13.33 million (2021: $9.19 million). For the fourth quarter ended September 30, 2022, total investment income amounted to $4.22 million (2021: $4.14 million).
Total operating expenses amounted to $3.45 million (2021: $3.17 million). Total operating expenses can be broken down as follows:
Interest expenses totalled $1.28 million (2021: $1.04 million).
Fund management fees rose 5% to $757,623 compared to $722,534 booked for 2021 year.
Professional fees totalled $476,600 (2021: $611,166).
Directors and subcommittee fees closed at $10,397 (2021: $3,320).
Office and administrative fees increased to $25,485 versus $22,282 reported in 2021.
Investment advisor fees totalled $757,623 (2021: $722,534).
Total operating expense for the fourth quarter ended September 30, 2022 amounted to $903,611 (2021: $884,406).
Profit before tax for the year ended September 30, 2022 closed at $9.88 million (2021: $6.02 million). Whereas, profit before tax for the fourth quarter ended September 30, 2022 totalled $3.31 million (2021: $3.26 million).
Profits attributable to Cellular property fund shareholders for the year amounted to $9.51 million compared to $5.76 million booked prior corresponding period. While, profit attributable to Cellular property fund shareholders for the fourth quarter ended September 30, 2022 totalled $3.09 million (2021: $3.11 million). Management stated that, “The increase in net profit is largely attributable to added income from recently acquired properties, net growth in the fair value of underlying assets, and strategic management of the Fund’s operational efficiency.”
Earnings per share for the year ended September 30, 2022 was $0.07 compared to an EPS of $0.04 for the corresponding period in 2021. Fourth quarter EPS amounted to $0.02 (2021: $0.02). Trailing EPS amounted to $0.07. The total amount of shares outstanding used for this calculation was 136,044,964 units. CPFV closed the trading period at J$40 on November 16, 2022, with a corresponding P/E ratio of 7.5 times.
The Company stated, “The fund concluded the financial year with a strong balance sheet, reporting $132.7 million in total assets, $8.2 million of liquidity and a conservative leverage of $24.2 million. Supported by the strength of our capital structure, the fund is well positioned to further improve and take advantage of expansion opportunities.”
Balance Sheet Highlights:
As at September 30, 2022, total assets amounted to $132.66 million, 4% more than the $126.97 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: $16.33 million).
CPFV, as at September 30, 2022, booked total shareholders’ funds of $106.65 million (2021: $100.69 million), which translated into a net asset value per share of $0.78 (2021: $0.74).
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