May 18, 2020
PanJam Investments Limited (PJAM) for the three months ended March 31, 2020, reported a total loss of $202.60 million relative to a total income of $583.08 million booked for the prior year’s corresponding period. Of total loss:
Other income rose 1033% to $363.10 million relative to $32.03 million in 2019 due to “gains from the sale of a development property in Kingston,” as per Management.
Loss on investments amounted to $1.08 billion compared to a gain on investments of $94.12 million for the three months ended March 31, 2019. PJAM mentioned that, “Investment losses arose due to unrealized losses in our portfolio of local and overseas equity holdings, which outweighed higher interest and dividend income and foreign exchange gains.”
Property income inched up 13% to $518.16 million (2019: $456.92 million). Management noted that, “Property income increased due to high occupancy, contractual rate increases and devaluation effects on leases denominated in US dollars.”
Operating expenses amounted to $442.08 million for the three months ended March 31, 2020 (2019: $401.17 million), 10% more than its total a year prior. PJAM stated that this increase was, “as a result of utility costs being driven by consumption levels and rate increases, as well as higher insurance premiums and professional fees.”
Consequently, operating loss closed the three months ended March 31, 2020 at $654.76 million relative to an operating profit of $190.13 million recorded in the prior corresponding period.
Finance costs for the period fell by 15%, amounting to $145.82 million compared to the $171.38 million for the comparable period in 2019 due to “lower average debt balances and interest rates,” according to PJAM.
Share of results of associated companies fell to close the quarter at $584.11 million (2019: $889.38 million). Management highlighted that, “The results of associated companies consisted principally of our 30.2% investment in Sagicor. Our share of earnings from Sagicor decreased by $265 million (31%) to $578 million. Sagicor’s first quarter results reflect the impact of the COVID-19. Other associated companies are also navigating this challenging environment.”
Loss before taxation closed the period at $216.48 million relative to profit before taxation of $908.13 million booked in the same quarter last year. Following a taxation credit of $228.48 million relative to a taxation charge of $13.04 million in 2019, net profit amounted to $12 million (2019: $895.08 million).
Net profit attributable to shareholders for the period amounted to $4.91 million from the $891.62 million recorded in the prior comparable period.
Total comprehensive loss closed the first quarter at $1.95 billion versus total comprehensive income of $1.69 billion in the same period last year.
Consequently, earnings per share for the period amounted to $0.005 (2019: $0.836). The twelve month trailing earnings per share is $6.96. The number of shares used in the calculation is 1,066,159,890 units. Notably, PJAM’s stock price closed the trading period on May 15, 2020 at a price of $76.20.
PJAM highlighted that, “Our real estate holdings have proved to be our most resilient assets. In the long term, our properties will continue to hold significant value, underpinned by our strong relationships with our tenants.” Moreover, Management mentioned that, “consistent with the performance of the local equities market, our securities trading portfolio suffered a loss for the quarter. We are confident, however, that we have invested in well-managed, well capitalised organisations that will help to drive our nation’s economic recovery. We are actively managing our costs, the benefits of which will primarily occur in the second quarter. We will continue to execute our existing major development projects, including the ROK Hotel & Residences.”
Balance Sheet at a glance:
As at March 31, 2020, PanJam Investments Limited (PJAM) had assets totalling $56.24 billion, a 19% increase relative to $47.25 billion a year prior. The growth was attributed to an increase in ‘Financial assets at fair value through other comprehensive income’ and ‘Financial assets at fair value through profit and loss’ which amounted to $4.09 billion (2019: $778.20 million) and $7.80 billion (2019: $6.65 billion), respectively. ‘Investment in associated companies’ also contributed to the increase amounting to $29.88 billion (2019: $28.12 billion).
Shareholders Equity amounted to $40.51 billion (2019: $35.16 billion) with a book value per share of $38 (2019: $32.98).
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