Sagicor Real Estate X Fund Limited (XFUND) for the nine months ended September 30, 2017, Total Revenue grew 20% to $9.97 billion (2016: $8.30 billion). According to the company the increase in revenue for the period was due to “improved occupancy and room rates over 2016”. For the quarter the company’s total revenue however increased 54% to close at 4.02 billion (2016: $2.60 billion).
Hotel revenue for the nine months period increased to $7.72 billion relative to $6.73 billion in 2016. Net capital gains on financial assets and liabilities increased by 51% to close at $2.32 billion (2016: $1.54 billion). Interest Income declined 38% to close at $22.09 million (2016: $35.41 million), while net investment property expense for the period ended September 2017 amounted to $99.40 million relative to nil in 2016.
Operating Expenses rose 14% to $7.24 billion (2016: $6.34 billion), this was attributed to a 12% increase in Hotel Expenses and a 15% increase in Interest Expense. The company indicated that the increase in interest expense was due to “Borrowings to finance the purchase of additional units in the Sigma Portfolio and a 15% investment in real property at the Jewel Grande Montego Bay (formerly known as Palmyra); and additional fixed assets purchased during renovation of the Hilton”. Hotel expenses totaled $5.59 billion compared to $5.00 billion in 2016, while depreciation for the quarter totaled $516.11 million (2016: $358.21 million). Interest expense for the period closed at $1.10 billion relative to $$956.16 million in2016. Other operating expenses increased 52% to close the quarter at $28.44 million relative to $18.67 million for the comparable period in 2016.
Consequently, Profit before Tax increased 39% to $2.73 billion (2016: $1.97 billion) for the nine months. Following tax charges of $367.26 million (2016: $279.99 million), Net Profit increased 40% to $2.36 billion, up from $1.69 billion for the comparable period in 2016. For the third quarter Net Profit increased 181% to close at $1.58 billion (2016: $561.47 million).
The earnings per share (EPS) for the nine months closed at $1.05 (2016: $0.75), while EPS for the quarter amounted to $0.70 (2016: $0.25). The trailing twelve-month EPS is $1.21. The number of shares used in our calculations was 2,243,005,125.
The company noted that “For 2017, we will remain focused on the execution of the business plan. Our newly refurbished towers and conference rooms at DoubleTree will attract better rates and returns for the Group. We are also pleased to report the official opening of the Jewel Grande Montego Bay in which we have a 36% interest (our 15% direct ownership and our share of the Sigma Portfolio’s interest). This investment will further improve the scale, scope and growth prospects of the Group. Our aim is to create real and sustained value for all our stakeholders”.
Balance Sheet Highlights:
The company, as at September 30, 2017, recorded total assets of $41.51 billion, an increase of 3% when compared to $40.40 billion recorded in the prior year. The main driver for the increase was Property Plant and Equipment which closed at $25.83 billion relative to $20.99 billion in 2016.
Total Stockholders’ equity as at September 30, 2017 closed at $22 billion, a 27% increase from the $17.34 billion for the corresponding period last year. This resulted in a book value of $9.81 (2016: $7.73). A total of 2,243,005,125 shares were used in the calculation.
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