First Rock changing its name to reflect core business
First Rock Capital Holdings Limited is adopting a new name to better telegraph the core nature of the operation.
Shareholders will vote on June 2 at the three-year-old company’s annual general meeting on its renaming to First Rock Real Estate Investments Limited.
Although First Rock had introduced itself to the market as a real estate and private equity investment firm, Chairman and Group CEO Ryan Reid said that after a year, there was a strategic realignment to divorce both business lines. It resulted in the creation of First Rock Private Equity, which focused on equity investments, while First Rock Holdings handled real estate.
Reid said shareholders are expected to approve the name change, especially since it “does not represent a change in business model, but rather a name change, so that the entity can be clearly identified”.
In the March quarter, First Rock reported assets valued at US$54.86 million, inclusive of US$29 million of investment property and US$13 million of developments in progress. Total assets are up 59 per cent in the past year from US$34.57 million.
Profit in the quarter amounted to US$2.15 million on the back of US$3.78 million in net revenue. In the comparative period in 2021, earnings amounted to US$796,000 and revenue of US$1.64 million.
“What we did was to aggressively build out the balance sheet with hard assets that allowed us to book gains on the sale of those assets, especially outside Jamaica,” Reid said.
“What we’re seeing is a stabilisation of the portfolio and a manifestation of the strategy,” he added.
Among the projects currently under way is Hambani, a high-priced residential development to be finalised by September, with townhouses costing up to US$2.4 million. That price equates to $370 million in Jamaican currency.
Nine of the 12 Hambani units have already been sold. The project is to be finalised by September.
First Rock will next be pouring US$12 million into a nine-storey high-rise to be developed at an undisclosed location in Kingston. Reid declined further comment on the specifics of the project, citing competitive reasons.