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:

• • 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 15% increase 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.