November 14, 2023
Sagicor Real Estate X Fund LTD (XFUND) for the nine months ended September 30, 2023 reported a 16% increase in Total Revenue totaling $6.02 billion compared to $5.17 billion in the corresponding period last year. Total Revenue for the third quarter closed at $1.750 billion compared to $1.753 billion for the comparable quarter of 2022.
Net capital gains on financial assets and liabilities amounted to $106.02 million (2022: loss of $231.70 million).
Hotel revenue increased by 8% to $5.61 billion compared to $5.19 billion for the nine months ended September 30, 2022.
Interest Income amounted to $295.01 million versus $211.43 million reported in 2022.
Depreciation increased by 6% to close at $693.63 million (2022: $655.74 million), while Hotel Expenses increased by 10% from $3.78 billion in 2022 to $4.15 billion in the period under review. Also, other operating expenses for the nine months ended September 30, 2023 amounted to $291.19 million, a 178% increase relative to $104.56 million reported in 2022.
Operating Expenses for the nine months ended September 30, 2023, amounted to $5.40 billion, a 12% increase relative to $4.81 billion reported in 2022. Operating Expenses for the third quarter amounted to $1.71 billion (2022: $1.60 billion).
Operating Profit totalled $624.55 million a 71% increase from the corresponding period last year. (2022: $365.44 million). For the quarter, operating profit amounted to $43.14 million (2022: $149.15 million)
Taxation for the nine months ended September 30, 2023, amounted to $198.61 million, relative to $153.83 million reported in 2022.
Net Profit for the nine months ended September 30, 2023 had a 101% increase to reach $425.94 million (2022: $211.60 million). For the third quarter, Net profit was $5.38 million (2022: $101.45 million). Management noted, “This represents strong progress in the Group’s performance despite global tourism not yet reaching pre-pandemic recovery levels. The results were driven by hotel revenues and recovery of earnings on investment portfolio which was boosted by the current macro-economic environment which led to positive fair value and foreign exchange movements. Increased guest spending and higher room rates contributed to an 8% growth in hotel revenues.”
Consequently, Earnings Per Share for the nine months amounted to $0.19 (2022: EPS: $0.09), while Earnings Per Share for the quarter totaled $0.002 (2022: EPS: $0.05). The twelve-month trailing EPS was $0.30 and the number of shares used in these calculations was 2,243,005,125.
Notably, XFUND’s stock price closed the trading period on November 13, 2023 at a price of $8.49 with a corresponding P/E ratio of 27.99x.
Balance Sheet Highlights
The company’s assets totalled $30.03 billion (2022: $28.37 billion). ‘Financial Investments’ grew 90% to $6.17 billion (2022: $3.25 billion), while ‘Cash resources’ declined 41% to $2.02 billion (2022: $3.43 billion), thus offsetting the upward movement in the company’s total assets.
Shareholder’s equity was $19.82 billion (2022: $18.71 billion), representing a book value per share of $8.84 (2022: $8.34).
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