May 26, 2022
PanJam, for the financial year ended December 2021, reported a favorable outcome with a 109% increase in total income due to investments rebounding from a loss of $523.25 million and closing at a gain of $2.10 billion. The company operating profit rose to $2.50 billion (2020: $315.08 million) while net profit increased to $7.23 billion (2020: $3.35 billion). Highlights, as presented by Management, are as follows:
- Debt-to-equity ratio of 26%, and a portfolio of cash and securities of $13.4 billion
- Investment income saw a substantial improvement over the losses seen in 2020
- Results were directly attributable to the uptick in prices for tradeable securities
- Real estate assets continue to show strong and consistent performance
- Property segment’s operating profit showed only a 2% decline year over year
- Our Associated Companies saw varying levels of impact from the pandemic
- Sagicor Group Jamaica delivered its highest net profit attributable to stockholders to date
- Itel delivered excellent results, exceeding expectations
- Walkerwood saw additional growth as it continued to leverage its enhanced U.S distribution
- Tourism-related investments in Chukka Caribbean Adventures and Courtyard by Marriott Kingston saw improvement towards year end international travel increased
Further property income over the last five years has increased from $1.79 billion in 2017 to $2.10 billion in 2021 (2020: $2.14 billion), PanJam’s CEO, Ms. Joanna Banks noted that, “Our property assets are exceptional resilient, occupancy levels went from 86% in 2017 to 96% in 2020, then fell to 92% in 2021. This decline is due to the return of some of commercial space specifically the scotia center in down town Kingston which under a major renovation. However, this space now available for rent.”
PJAM for the three months ended March 31, 2022, reported a 5% increase in investment to $236.94 million, 39% decrease in operating profit to $226.30 million and a 5% increase in net profit to $1.07 billion. Highlights, as presented by Management, are as follows:
- Income from core operations remained relatively flat year over year
- Investment gains increased by 5% to $237 million
- Driven by higher dividends and unrealized trading gains
- Real estate assets continue to deliver strong and consistent results
- Property income declined by 4% as a result of lower occupancy levels
- Operating expenses grew by 31% due to increased staff and professional services costs
- Finance cost up by 8% on higher interest rates
- Our associated companies saw varying levels of performance
- PanJam’s share of results increased by 28%, driven by its 30.2% stake in Sagicor
The Company highlighted the following strategic imperatives:
- Grow Our Trading Portfolio
- Focus on Jamaica markets, while maintaining diversification to hedge against shocks
- Take Additional Equity Positions
- Utilise our capacity to provide financial support and impart transformational leadership
- Explore investment landscape for opportunities to partner with companies that meet our investment guidelines, in industries that complement our existing holdings
- Expand Our Real Estate Portfolio
- Capitalise on our deep history of and experience in property development, management and rental
Sagicor strong performance has had a positive impact on PanJam portfolio, Ms. Banks noted, “in early 2022, Sagicor complete the 100% purchase of share in Alliance Financial Services and agreed to acquired book of business from Alliance Investment Management. Alliance services are now licensed to offer combio and remittance services at approved locations around the island. PanJam is looking forward to the benefits.”
Additionally, looking at the other strategic equity portfolio such as Manufacturing Outsourcing Tourism, etc, the following was highlighted;
- New Castle Company continued to grow as it leverages its enhanced U.S distributions
- Outsourcing Management expanded into Guyana, Hondras and Indiana, USA
- Term Finance grew is loan portfolio as it delivered responsible financing options through challenging times
- Chaukka Caribbean Adventures, Caribe Hospitality Jamaica and Aloft Miami Airport saw improved business activity as pandemic related restrictions were lifted
- Williams Offices occupancy rose as people return to office
Looking ahead Ms. Banks highlighted the following;
- Although there are positive indications, uncertainty remains
- Our recent experience in crisis has highlighted the benefits of our strong liquidity position, low leverage and long-term vision
- We are confident in the resilience of the Jamaican economy and its people
- We know that recovery will be driven by collaboration amongst all stakeholders in both the public and private sectors
- We are committed to investing in companies that contribute to meaningful and sustainable economic growth
The ROK hotel project is near completion as, “the ROK hotel will open officially this summer in 2022,” as per CEO Ms. Banks. She further highlighted that, “our next AGM might be hosted at the ROK hotel.” The ROK Hotel Kingston is a 12-storey contemporary hotel, located on Ocean Boulevard in downtown Kingston. It is a Tapestry Collection by Hilton with a 168 room property that is owned by PanJam Investment Limited, The hotel will include dining options, residential opportunities, and business meeting spaces. ROK will also feature an expansive pool deck, a fitness centre, as well as a lounge area, restaurant, café and bar. Guests of the hotel will be provided with convenient access to the National Gallery of Jamaica, Port Royal, and the Jamaica Conference Centre.
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