Sagicor Real Estate X Fund LTD (XFUND) for the nine months ended September 30, 2023 reported a 16% increase in Total Revenue totaling $6.02 billion compared to $5.17 billion in the corresponding period last year. Total Revenue for the third quarter closed at $1.750 billion compared to $1.753 billion for the comparable quarter of 2022.

Net capital gains on financial assets and liabilities amounted to $106.02 million (2022: loss of $231.70 million).

Hotel revenue increased by 8% to $5.61 billion compared to $5.19 billion for the nine months ended September 30, 2022.

Interest Income amounted to $295.01 million versus $211.43 million reported in 2022.

Depreciation increased by 6% to close at $693.63 million (2022: $655.74 million), while Hotel Expenses increased by 10% from $3.78 billion in 2022 to $4.15 billion in the period under review. Also, other operating expenses for the nine months ended September 30, 2023 amounted to $291.19 million, a 178% increase relative to $104.56 million reported in 2022.

Operating Expenses for the nine months ended September 30, 2023, amounted to $5.40 billion, a 12% increase relative to $4.81 billion reported in 2022. Operating Expenses for the third quarter amounted to $1.71 billion (2022: $1.60 billion).

Operating Profit totalled $624.55 million a 71% increase from the corresponding period last year. (2022: $365.44 million). For the quarter, operating profit amounted to $43.14 million (2022: $149.15 million)

Taxation for the nine months ended September 30, 2023, amounted to $198.61 million, relative to $153.83 million reported in 2022.

Net Profit for the nine months ended September 30, 2023 had a 101% increase to reach $425.94 million (2022: $211.60 million). For the third quarter, Net profit was $5.38 million (2022: $101.45 million). Management noted, “This represents strong progress in the Group’s performance despite global tourism not yet reaching pre-pandemic recovery levels. The results were driven by hotel revenues and recovery of earnings on investment portfolio which was boosted by the current macro-economic environment which led to positive fair value and foreign exchange movements. Increased guest spending and higher room rates contributed to an 8% growth in hotel revenues.”

Consequently, Earnings Per Share for the nine months amounted to $0.19 (2022: EPS: $0.09), while Earnings Per Share for the quarter totaled $0.002 (2022: EPS: $0.05). The twelve-month trailing EPS was $0.30 and the number of shares used in these calculations was 2,243,005,125.

Notably, XFUND’s stock price closed the trading period on November 13, 2023 at a price of $8.49 with a corresponding P/E ratio of 27.99x.

Balance Sheet Highlights

The company’s assets totalled $30.03 billion (2022: $28.37 billion). ‘Financial Investments’ grew 90% to $6.17 billion (2022: $3.25 billion), while ‘Cash resources’ declined 41% to $2.02 billion (2022: $3.43 billion), thus offsetting the upward movement in the company’s total assets.

Shareholder’s equity was $19.82 billion (2022: $18.71 billion), representing a book value per share of $8.84 (2022: $8.34).

Disclaimer:

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.