Stanley Motta revenues up 55 per cent

Stanley Motta revenues up 55 per cent

BY ABBION ROBINSON
Observer business reporter
robinsona@jamaicaobserver.com

Friday, August 07, 2020

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Stanley Motta Limited (SML), developer of the 58 HWT technology park in Kingston, was able to increase revenue, net operating income and funds from operations for the financial year ended December 31, 2019.

According to Chairman Melanie Subratie, the entire property of approximately 213,000 square feet was rented at 100 per cent occupancy for the entire financial year, whereas this was not the case for the 2018 financial year.

SML achieved revenues of $419.8 million, up 55 per cent over the previous corresponding period. Net operating income was also up 90 per cent to $298 million.

However, net profit for the year under review amounted to $281 million, an 85.9 per cent decrease when compared with the $1.9 billion recorded in 2018. This is reflective of a large revaluation gain in the 2018 financial year which was not there to the same extent in 2019.

According to Subratie, without the revaluation gains, net profit would have been $95 million in 2018 and $228 million in 2019, which represents an increase in net profit of 140 per cent.

The property, which is valued at US $36.8 million, is assessed by an independent valuer every year, and assessments are then validated by SML's auditor.

Rental income as a percentage of total investment property increased by three per cent to 8.78 per cent over the previous year.

Subratie further indicated that demand for the space continues, and SML is therefore “constantly seeking ways to enhance the development in any way that we can”.

“The COVID-19 pandemic's economic repercussions have brought into sharp focus the need to preserve value. Most vehicles that own real estate are heavily indebted. However, all Stanley Motta's debt is long term, and so there is little risk to the business from short-term debt given the current economic fallout. This should allow us the flexibility required to weather the economic downturn that is currently being faced by the world's economy,” she stated in the report to shareholders.

Shareholder's equity totalled $4 billion, which represented a 3 per cent increase over the previous year, while total assets remained the same at $4.8 billion.

Earnings per share as at December 31 stood at $0.37.

The facility at 58 Half-Way-Tree Road is rented predominantly to BPO firm Alorica and includes a range of other service provider tenants, including a childcare facility, automated teller machines and financial services, health care, and a range of food and beverage options.


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