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Sagicor X Fund earns $410m at half year

Published:Sunday | August 17, 2014 | 12:00 AM

Sagicor Real Estate X Fund Limited earned revenue of $410 million at half-year ending June 2014.

With no expenses for the period, the start-up company also made net profit of $410 million or 27 cents per share.

Total assets stood at $8.8 billion, up from $8.4 billion at December 2013.

Book value per share has also increased over the period, from $5.63 at the end of last year to $5.90 for the most recent period.

The company is chaired by Richard Byles and its CEO is Rohan Miller, both executives of Sagicor Group Jamaica Limited. It is completely invested in the Sagicor Group-controlled Sigma Real Estate portfolio, which holds a mix of hotels, commercial, industrial and warehousing properties with a total value of more than $16 billion.

Sigma Real Estate was launched in 2012 and is marketed as a moderate risk property portfolio with investment in the real estate- related structures mainly in the Caribbean region.

Tourism properties include three hotels operated under the Jewel Resorts brand, totalling 741 bedrooms and including an 18-hole championship golf course. A new US$5 million water park at its Runaway Bay property is scheduled to open for the upcoming winter season.

Its commercial properties are mainly in industrial parks and office buildings

Although currently only in Jamaica, the fund intends to diversity into the wider Caribbean and other regions, according to its annual report.

In its assessment of market dynamics, Sagicor X Fund said it expects continued growth in the tourism sector.

"Based on recent trends, it is expected that total stopover tourist arrivals will climb 1.6 per cent to 2.04 million for the full year 2014," its earnings report said.

In the commercial sector, the report said there was an increase in demand for office and warehouse space in the 1,000 to 2,000 square foot range. Growth in the business process outsourcing and call-centre segments had also brought a "gradual increase" in demand for lager space of 6,000 to 10,000 square foot, X Fund said.

"The Jamaican economy "continues to transform as it lays the platform for future sustainable economic growth," the report said.

Sagicor X Fund was listed on the Jamaica Stock Exchange on November 15, 2013. The company is 67.7 per cent owned by the Sagicor Pooled Pension Investment Funds, which is administered by Sagicor Life Jamaica.

The X Fund share price had dropped to $6 at the end of June, but has recovered since to close at $6.86 on Friday. That's up 37 per cent on its $5 listing price.