- Sagicor Real Estate XFUND Limited, for the year ended December 2019, reported total revenue of $6.30 billion relative to $5.82 billion recorded in 2018, an 8% increase year over year. For the quarter, total revenue closed at $1.54 billion versus $1.15 billion in the prior comparable quarter. The total revenue was accumulated by the following:
-
- Interest income for the year end reduced to $23.72 million versus $26.84 million in 2018, a 12% reduction year over year.
- Hotel revenue amounted to $5.91 billion, a 6% improvement relative to $5.55 billion reported the prior year.
- Net capital gains amounted to $221.57 million (2018: $246.51 million), while other income stood at $146.86 million (2018: nil).
Operating expenses rose 5% to $5.30 billion compared to $5.06 billion in the prior corresponding period. For the quarter, operating expenses amounted to $1.24 billion compared to $1.67 billion reported in the same period last year. Of this:
-
- Direct expenses increased to $2.47 billion, up 14% when compared to $2.15 billion in the prior corresponding year.
- Administration Expense closed at $2.82 billion versus $2.80 billion recorded in the same period in 2018.
- Net impairment losses on financial assets declined 91% to $9.62 million (2018: $109.89 million).
The Company reported an operating profit of $356.82 million, an improvement when compared to the operating loss of $386.02 million same period last year. Share of loss from associate accounted for using the equity method amounted to $98.66 million compared to a loss of $393.89 million in 2018. Profit before tax of $258.15 million relative to loss before tax of $779.91 million for the year ended 2018. After incurring tax charges of $335.13 million (2018: tax credit of $537.63 million), net loss from continuing operations closed at $76.98 million compared to net loss from continuing operations of $242.28 million booked in December 2018. For the quarter, net loss from continuing operations closed at $119.91 million versus net loss from continuing operations of $222.17 million in the previous comparable quarter.
Net loss for the year end amounted to $15,000 versus net loss of $76.98 million reported in the previous comparable period.
While, total comprehensive income closed at $538.16 million (2018: $2.31 billion). For the quarter, total comprehensive loss totaled $1.62 billion compared to total comprehensive loss of $98.39 million reported in the same period last year.
The Company recorded net loss attributable to shareholders of $38.31 million relative to net profit attributable to shareholders of $154.35 million. While for the quarter, net profit attributable totaled $25.98 million (2018: net loss of $397.47 million). Directors report states, “The results for the both quarters were impacted by losses reported by Playa.”
Notably, “The performance of the hotels which were directly owned for January to May 2018 produced better results than our share of earnings from investment in Playa Hotels & Resorts N. V. (Playa) since disposal and into 2019. The prior year’s results include a onetime gain of $367 million stemming from the sale of the Jewel hotels. The current year numbers include a tax charge of $200 million on dividends repatriated from DoubleTree by Hilton (DoubleTree) to its immediate parent, X Fund Properties Limited. Unrealised capital gains from revaluation of the Jewel Grande Montego Bay (JGM) property were much higher in 2019.”
As such the loss per share (LPS) for the year end closed at $0.02 relative to an EPS of $0.07 at the end of 2018. For the quarter, earnings per share closed at $0.01 (2018: LPS of $0.18). The number of shares used in our calculations was 2,243,005,125 units. As at April 09, 2020, the stock traded at $7.58.
The company outlook highlighted, “The COVID-19 pandemic has negatively impacted hospitality, airlines and other related sectors. Our local hotel operation closed in March 2020, while our partner, Playa Hotels & Resorts N. V. has also closed some of its operations both locally and overseas. DoubleTree remains opened but is experiencing some cancellations. This virus is a global crisis and we continue to closely monitor the situation. We remain hopeful that our business activities will quickly rebound in the latter part of the year.”
Balance Sheet Highlights:
The Company, as at December 2019, recorded Total Assets of $49.22 billion, a marginal increase when compared to $48.80 billion recorded as at December 2018. This was as a result of ‘Investment Property’ which closed at $2.03 billion relative to $1.92 billion the prior year, ‘Investment in Sigma Global Fund – Real Estate Portfolio’ and ‘Property, Plant and Equipment’ amounting to $871.64 million (2018: $774.86 million) and $14.86 billion (2018: $14.77 billion) respectively.
Total Shareholders’ Equity as at December 31, 2019 closed at $25.54 billion, a 2% increase from the $25.05 billion reported for the corresponding period last year. This resulted in a book value per share of $17.08 (2018: $16.75).
Disclaimer: Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.