March 3, 2022

Sagicor Real Estate XFUND Limited (XFUND), for the year ending December 31, 2021, reported total revenue of $5.79 billion relative to the $2.58 billion reported in 2020, a 125% increase year over year. XFUND’s Board of Directors stated, ‘Sagicor Real Estate XFund continued to show improvement in its financial performance, consistent with the momentum within the global economy. Additionally, the improved results reflect the improvement in theme park attendance in Orlando USA as the industry emerged from the COVID-19 shutdowns in 2020.’ According to Florida officials, visitor arrivals to the state above pre-pandemic levels is being experienced. Total Revenue for the quarter totaled $1.88 billion compared to $655.05 million in 2020.

Hotel Revenue for the twelve-month period increased by 83% to $4.43 billion relative to $2.43 billion in 2020. Net Capital Gains on financial assets and liabilities amounted to $1.19 billion relative to net capital losses of $93.20 million in the prior year. Other income amounted to $19.87 million (2020: 533,000) for the year.

Operating Expenses grew by 9% to $4.80 billion (2020: $4.39 billion). Of this:

• • Hotel Expenses increased to $3.37 billion, up by 61% compared to $2.09 billion in the prior year. For the quarter, Hotel Expenses closed at $985.99 million versus $476.20 million in the fourth quarter of 2020.
  • There was Depreciation of $811.01 million (2020: $790.08 million) for the period under review. Interest Expense fell 23% in the year to $529.45 million (2020: $683.19 million). In its report, XFUND noted the Group was able to retire debt of $2.99 billion, which reduced interest costs.
  • Other Operating Expenses decreased to $94.81 million (2020: $118.42 million). While for the quarter, other operating expenses fell by 6% to close at $35.48 million (2020: $37.61 million). For the quarter, Operating Expenses amounted to $1.30 billion compared to the $876.02 million reported in the prior corresponding quarter

Operating Profit for the period amounted to $990.60 million compared to an operating loss of $1.81 billion booked in 2020. Impairment of investment in associate was nil for 2021 compared to $7.93 billion in 2020. Share of loss from associate for the year was nil relative to $5.47 billion in 2020.

As such, Profit before tax closed the year at $757.51 million, an improvement year over year from a net loss of $15.59 billion. The Company reported a Net profit of $720.86 million compared to a net loss of $15.39 billion in 2020. Net Profit for the quarter, amounted to $441.94 million versus a net loss of $3.10 billion in 2020.

Total Comprehensive Income for the year amounted to $978.05 million relative to a Loss of $15.11 billion booked last year.

The EPS for the year amounted to $0.15 (2020: LPS of $2.41).  The number of shares used in our calculations was 2,243,005,125. As at March 1, 2021, the stock traded at $8.36 with a negative P/E ratio.

Management highlighted that, “The company’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.”

Balance Sheet Highlights:

The Company, as at December 31 2021, had Total Assets worth $31.32 billion, a decrease of 2% when compared to $32.00 billion recorded as at December 31, 2020.

Total Shareholders’ Equity as at December 31, 2021 closed at $16.59 billion, a 9% increase from the $15.17 billion reported for the corresponding period last year. This resulted in a book value per share of $7.40 (2020: $6.76).

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