First Rock targets US$28 million in deals as company returns to profit

First Rock Real Estate Investments Limited is in negotiations to acquire income-generating commercial properties in Costa Rica and Martinique with a combined estimated value of about US$28 million, roughly 40 per cent of the group's total assets, as the company returned to profit for the first time since 2023.

"Negotiations are currently under way for acquisitions in Costa Rica and Martinique with an estimated combined value of approximately US$28 million, which are expected to strengthen recurring revenue streams and enhance long-term shareholder value," the board said.

The company entered a letter of intent with Guardian Holdings Limited on January 30, 2026 for the proposed Martinique acquisition, but did not disclose additional details. First Rock engages in real estate ventures in Costa Rica through KFC Costa Rica.

The acquisitions form the centrepiece of what the board described as a strategy to reposition First Rock's portfolio towards sustainable, income-generating real estate assets across the Caribbean following a period of "transition and recovery".

The St Lucia-incorporated group, which is listed on the Jamaica Stock Exchange, reported a net profit of US$3,327 for the year ended December 31, 2025, reversing a loss of US$8.89 million the prior year. Rental income climbed to US$1.23 million from US$161,281 in 2024, a rise of about 663 per cent, while net fair value gains on investment properties contributed US$4.44 million, lifting total property income to US$5.19 million, against a property loss of US$4.71 million in 2024.

Total assets grew to US$65.76 million from US$57.17 million, a rise of about 15 per cent, while shareholders' equity edged up to US$25.79 million from US$25.64 million. Interest expense nearly doubled to US$1.73 million from US$895,213, reflecting expanded borrowings, including a US$15-million secured note arranged through Mayberry Investments Limited to refinance the group's Hambani residential development in Kingston, which was reportedly 90 per cent complete at year end.

"Management believes that based on the strategies being pursued, the group is on a path to generate adequate cash flows to allow it to continue operational existence for the foreseeable future, meet its obligations as they fall due, and provide positive returns to the stakeholders," the company said. 

business@gleanerjm.com