November 15, 2021
Sagicor Real Estate XFUND Limited (XFUND), for the nine months ended September 30 2021, reported total revenue of $3.91 billion relative to $1.92 billion reported in 2020, a 103% increase year over year. XFUND stated, “Sagicor Real Estate X Fund continues to show improvement in its financial performance, consistent with the momentum within the global economy during the third quarter.”
Hotel revenue for the nine months period increased to $3.03 billion relative to $1.85 billion in 2020. There was no hotel revenue from discontinued operations (2020: $202.87 million). Net capital gains on financial assets and liabilities amounted to $791.57 million relative to net capital losses of $143.93 million in the prior year. Other income amounted to $17.76 million (2020: 514,000) for the nine months.
Operating expenses fell by 0.1% to $3.507 billion (2020: $3.510 billion). For the quarter, operating expenses amounted to $1.29 billion compared to the $1.34 billion reported in the prior corresponding quarter. Of this:
- Hotel expenses increased to $2.38 billion, up by 47% when compared to $1.61 billion in the prior comparable year. For the quarter, hotel expenses closed at $947.37 million versus $417.07 million in the prior comparative quarter.
- There was depreciation of $596.94 million (2020: $598.18 million) for the period under review. Depreciation for the quarter totaled $201.94 million (2020: $208.70 million). Interest expense for the period declined 12% to $469.66 million (2020: $536.71 million).
- Other operating expenses decreased to $59.33 million (2020: $80.81 million). While for the quarter, other operating expenses fell by 47% to close at $23.48 million (2020: $44.01 million).
Operating profit for the period amounted to $406.85 million compared to an operating loss of $1.59 billion booked in 2020.
Loss due to dilution of associate amounted to $233.09 million for the nine months in contrast to a loss of $388.15 million last year.
The company reported profit before tax of $173.76 million relative to loss before tax of $10.58 billion for the nine months. After a tax credit of $105.17 million (2020 tax credit $169.41 million), the Company reported a net profit of $278.93 million compared to a net loss of $10.41 billion 2020. For the third quarter, net loss amounted to $18.05 million versus a net loss of $2.36 billion as at September 2020.
Net loss attributable to shareholders for the nine months amounted to $65.43 million (2020 loss: $6.89 billion) while for the quarter net loss attributable to shareholders amounted to $18.05 million (2020 loss: $1.78 billion).
Total comprehensive loss for the nine months amounted to $49.30 million relative to a comprehensive loss of $10.40 billion booked last year. Whereas for the quarter, total comprehensive income amounted to $1.24 billion (2020 loss: $4.13 billion).
The loss per share (LPS) for the nine months closed at $0.03 relative to a loss per share (LPS) of $3.07 in 2020. While, the LPS for the quarter amounted to $0.01 (2020: LPS of $0.79). The trailing twelve-month LPS is $1.41. The number of shares used in our calculations was 2,243,005,125. As at November 15, 2021, the stock traded at $8.00.
Management highlighted that, “The Group’s results were underpinned by a divestment of hotel assets from the sale of Playa shares and Jewel Grande Montego Bay operations coupled with diversification of financial investments portfolio. This shows a commitment and willingness to adjust our business model amidst a depressed economic environment.”
Balance Sheet Highlights:
The Company, as at September 30 2021, recorded total assets of $30.96 billion, a decrease of 16% when compared to $36.91 billion recorded as at September 2020. The decrease was due to 100% decline in ‘Investment in Associate’ which closed the period at nil (2020: $20.51 billion).
Total Shareholders’ Equity as at September 30, 2021 closed at $15.56 billion, a 14% decrease from the $18.05 billion reported for the corresponding period last year. This resulted in a book value per share of $6.94 (2020: $8.05).
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