September 4, 2020

Ms. Brenda-Lee Martin, CEO of Sagicor Real Estate X Fund, Ms. Martin highlighted the financial performance of XFUND. For the year ended December 31, 2019, revenue amounted to $6.30 billion (2018: $8.81 billion) to reflect a net loss of $38.31 million relative to a net profit of $154.35 million in 2018. This was partly due to the share of net loss from Playa through JAMZIV as a result of reduced occupancy, negative media coverage and expenditure on new and renovated properties in 2019.

Moreover, Ms. Martin highlighted the impact of COVID-19 on Playa and the measures taken to mitigate the effects of liquidity:

• Raised $224 million of additional capital in the form of additional debt and $20 million of equity financing
• Sold two Jewel resort properties for total cash consideration of $60 million
• Borrowed an additional $40 million under a revolving credit facility
• Senior executive salary reductions
• Temporary suspension of operations of all resorts, significantly reducing the variable costs
• Deferred all non-critical capital expenditures planned for 2020

Impact of COVID-19 on DoubleTree Orlando as per Ms. Martin:

• Hotel remained open with significantly reduced occupancy
• Expansion plans have been halted
• US government aid is available through the CARES Act
• Deferred all non-critical capital expenditures planned for 2020
• Significant reductions in variable costs (such as layoffs)
• Occupancy was directly impacted by recent resurgence of COVID in Florida

The outlook for XFUND according to Ms. Martin is as follows:

• The global economy has now shifted from full shutdown to resumption of some activities, including Tourism
• The World Travel and Tourism Council (WTTC) anticipates that Tourism will likely return to pre-pandemic levels within a 19-month period but any recovery, will be further dependent on the duration of the pandemic, containment measures and successful measures for a vaccine.
• XFUND remains focused on taking active measures to preserve cash and protect stakeholders
• Implement strict health and safety protocols to protect guests and employees
• Offer various promotional packages to push sales to all properties during this time

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