XFUND reports six months net loss attributable to shareholders of $47.39 million

August 18, 2021

Sagicor Real Estate XFUND Limited’s total revenue for the six months rose by 75% to $2.70 billion (2020: $1.54 billion). Of this;

Interest income rose 106% to $22.26 million (2020: $10.80 million).

Net capital gain on financial assets and liabilities amounted to $803.47 million, relative a loss of $144.07 million booked the corresponding period in the prior year.

Hotel Revenue for the six months period rose by 25% to $1.87 billion (2020: $1.49 billion).

Operating Expenses for the period rose 2% to $2.21 billion (2020: $2.17 billion). Of this, interest expense fell 9% to $347.48 million (2020: $381.65 million). Hotel expenses, however, rose by 20% to $1.43 billion (2020: $1.20 billion). While depreciation rose marginally by 1% to $395 million (2020: $389.48 million) and Other operating expenses decreased by 3% to $35.86 million (2020: $36.80 million).

As a result, operating profit amounted to $484.07 million, relative to a loss of $634.26 million in the previous comparable period.

The Company reported a profit before tax of $250.98 million relative to pre-tax loss of $8.14 billion  booked for the six months ended June 2020. After incurring tax credit of $46 million (2020: $97.16 million), Net profit amounted to $296.98 billion, relative to a loss of $8.05 billion for the comparable period in 2020. However, for the second quarter, Net profit totalled $500.18 million relative to a loss of $3.57 billion booked in 2020.

Net loss attributable to shareholders amounted $47.39 million, relative to a loss of $5.10 billion for the comparable period in 2020. However, for the second quarter, net profit attributable to shareholders closed at $154.72 million relative to a net loss of $2.34 billion in 2020.

Total comprehensive loss amounted to $1.29 billion (2020: loss of $6.27 billion). While, for the quarter, total comprehensive income amounted to $589.15 million versus loss of $2.32 billion booked twelve months earlier.

The loss per share (LPS) for the six months closed at $0.02 (2020 LPS: $2.28), While the earnings per share for the quarter amounted at $0.07 (2020 LPS: $1.04). The trailing twelve-month LPS is $2.20.  The number of shares used in our calculations was 2,243,005,125. As at August 16, 2021, the stock traded at $8.41.

According to the company, “Consistent with global trends, Sagicor Real Estate X Fund continues to show improvements in its financial performance for the second quarter ending June 30, 2021. The sale of Playa shares finalised in January 2021 netted proceeds of J$13.60 billion, signalling a strong commitment to increasing the pace of recovery from the significant losses in prior year. The move is consistent with the strategy of venturing into less risky investments and reducing the Group’s tourism exposure. The Group intends to utilize proceeds from the sale of Playa shares to reposition itself with investments in a broader range of real estate assets with good growth prospects in the medium term.”

Balance Sheet Highlights:

The Company, as at June 30, 2021, recorded total assets of $29.33 billion, decrease of 32% when compared to $43 billion recorded in the prior year. This decrease was mainly due to a 17% decrease in ‘Property, plant and equipment’ to $12.81 billion (2020: $15.42 billion).

Total Stockholders’ equity as at June 30, 2021 closed at $14.32 billion, a 34% decrease from the $21.72 billion for the corresponding period last year. This resulted in a book value of $6.38 (2020: $9.68).


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