XFUND reports 63% decrease in six months net profit

August 9, 2022


Sagicor Real Estate XFUND Limited (XFUND) 

For the six months ended June 30, 2022

Sagicor Real Estate XFUND Limited (XFUND), for the six months ended June 30, 2022, reported total revenue of $3.42 billion relative to $2.70 billion reported in 2021, a 27% increase year over year. XFUND noted “An increase in the Group’s interest-earning assets and a decrease in finance costs contributed favourably to the Group’s performance. However, market volatilities caused by rising interest rates and high inflation generated capital losses of $275.15 million (2021: $803.47 million Gain).”

Hotel revenue for the six-month period increased to $3.55 billion compared to the $1.87 billion reported in 2021. In their quarterly report, relating to their direct hotel operations, XFUND said, “The increase in occupancy levels and hotel bookings resulted in a $1.68 billion, or 90% improvement in hotel revenues over the prior year.”

Operating expenses rose by 45% to $3.20 billion (2021: $2.21 billion). Of this:

    • Hotel expenses increased to $2.53 billion, up by 76% versus the $1.43 billion in the year prior.
    • Depreciation expense assigned for the period $437.06 million (2021: $395 million) for the period under review. Interest expense for the period declined 47% to $182.54 million (2021: $347.48 million).
    • Other operating expenses increased to $57.51 million (2021: $35.86 million).

XFUND reported profit before tax of $216.29 million relative to $250.98 million for the six months period. After paying taxes of $106.13 million, XFUND reported a net profit of $110.16 million compared to a net profit of $296.98 million in 2021. Net loss for the quarter closed at $71.46 million versus net profit of $500.18 million

Net profit attributable to shareholders for the period under review totalled $110.16 million compared to net loss attributable of $47.39 million booked twelve months prior. Net Loss attributable to shareholders for the quarter amounted to $71.46 million compared to net profit attributable to shareholders of $154.72 million reported in 2021.

XFUND closed their six months with an EPS of $0.05. In 2021, XFUND reported a loss per share (LPS) of $0.02. For the quarter, LPS amounted to $0.03 versus EPS of $0.07. The trailing twelve-month EPS is $0.24 and the number of shares used in our calculations was 2,243,005,125. As at August 8, 2022, the stock traded at $8.20 with a P/E of 34.44 times.

Balance Sheet Highlights:

The Company, as at June 30 , 2022, recorded total assets of $25.37 billion, a 14% decrease when compared to $29.33 billion reported in 2021. The increase was primarily due to a $2.87 billion increase in ‘Financial investments’ which closed the period at $3.06 billion (2021: $189.72 million).

Total Shareholders’ Equity as at June 30, 2022 closed at $16.50 billion, a 15increase from the $14.32billion reported for the corresponding period last year; resulting in a book value per share of approximately $7.35 (2021: $6.38). Notably, XFUND’s equity reserves fell by 65% to $4.41 billion from $2.76 billion in 2021 owing to losses seen during the Q2 period of 2022.



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