August 8, 2023

FIRSTROCK Real Estate Investments Limited (FIRSTROCK) for the six months ended June 30, 2023:

Net operating income declined 67% to US$2.74 million (2022: US$8.26 million). For the quarter, net operating income declined 66% to US$1.54 million (2022: $4.48 million).

Of the six-month net operating income:

• Property income declined 47% to US$2.92 million (2022: US$5.53 million)
• Net investment loss amounted to US$217,484 (2022: income of US$2.75 million)
• Other income amounted to US$39,409 (2022: loss of US$14,369)

Total operating expenses declined 43% to US$2.11 million (2022: US$3.69 million). Of this:

• Depreciation and amortisation declined 95% to US$2,861 (2022: US$52,548)
• Performance based fee declined 87% to US$194,695 (2022: US$1.52 million)
• Expected credit losses declined 81% to US$40,544 (2022: US$217,014)
• Administrative & general expenses declined slightly to US$1.87 million (2022: US$1.90 million)

As such, operating profit declined 86% to US$630,625 (2022: US$4.57 million).

There was no share of profit from investment in associate for the period (2022: US$18,969).

Following a tax charge of US$2,781 (2022: US$13,859), net profit declined 86% to US$627,844 (2022: US$4.58 million). For the quarter, net profit declined 83% to US$422,869 (2022: US$2.42 million).

Net profit attributable to shareholders amounted to US$627,844 (2022: US$4.58 million).

Earnings per share (EPS) amounted to US$0.002 (2022: US$0.016). For the quarter, EPS amounted to US$0.002 (2022: US$0.009). The twelve-month trailing EPS amounted to US$0.0004. The number of shares used in this calculation was 286,025,318. FIRSTROCKJMD closed the trading period on August 4, 2023, at J$9.23 with a corresponding P/E of 165.90x, while FIRSTROCKUSD closed at US$0.04 with a corresponding P/E of 111.17x

Management noted that the Group’s flagship development is slated for completion by December of this year with 60% of the project presold. The remaining units will be put back on the market with a view to achieving 100% sales within the next six to nine months.

Additionally, the Group’s second development project, Bonne Chance, is in its final stages of planning and development is slated to commence in the third quarter.

Balance Sheet at a Glance:

Total assets increased 7% to US$62.66 million (2022: US$58.64 million). This increase was due largely to a 243% increase in ‘Investment Property held for Sale’, which amounted to US$5.91 million (2022: US$1.72 million) followed by a 25% increase in ‘Current development in progress’, which amounted to US$19.25 million (2022: US$15.44 million). However, the increase was tempered by a 19% decline in ‘Investment Property’, which closed at US$23.23 million (2022: US$28.63 million).

Shareholder’s equity declined slightly to US$36.77 million (2022: US$36.99 million) resulting in a book value of US$0.129 (2022: US$0.129).

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