A 12 per cent improvement in earnings pushed net profit for Pan-Jamaican Investment Trust Ltd for the year ended December 31, 2015, to $3.19 billion compared to $2.843 billion in 2014.

While property income decreased four per cent, year over year, to $1.48 billon from $1.55 billion — reflecting declining rental income in the main — the group’s associated and joint venture companies delivered higher returns during the year.

PanJam’s 31.5 per cent stake in Sagicor continued to generate the majority of income from this segment.

In total, the share of results of associated and joint venture companies increased by 20 per cent or $533 million to $3.22 billion — compared to $2.69 billion in 2014. Of that amount $3.05 billion was generated by Sagicor compared to $2.66 billion in 2014.

Sagicor’s own net profit attributable to shareholders was $9.79 billion, an increase of 15 per cent year over year — driven by growing banking and insurance results. The associate also benefited from the release of reserves resulting from changes to tax rules for life insurance companies.

PanJam had at the time of reporting 20 per cent interest in Hardware & Lumber Ltd and Chukka Caribbean Adventures Ltd; 50 per cent of Mavis Bank Coffee Factory Ltd, which is a joint venture with Jamaica Producers Group Ltd; a 25 per cent interest in New Castle Company Ltd who are owners of the Walkerswood and Busha Browne brands; and a 32 per cent interest in Caribe Hospitality Jamaica Ltd, developers of the Marriott Courtyard hotel in New Kingston, which opened in December 2015.

The company also holds a 50 per cent interest in Kingchurch Property Holdings Ltd, the property developer currently refurbishing the former Oceana hotel in downtown Kingston.

H&L’s profit declined to $164 million compared to $217 million in 2014 — a reduction linked to increasing operating expense and reduction in other income.

At the end of 2015 the majority interest in H&L was purchased at a price of $18.50 per share and PanJam accepted the takeover offer.

Adventure tours company Chukka Caribbean delivered better results during the year in review, with PanJam’s share of results improved to $48 million in 2015, versus $25 million in the prior year.

Mavis Bank, processor and seller of Jamaica Blue Mountain coffee, provided profit share of $48 million, compared to a loss of $40 million in 2014.

PanJam noted in its release on its results that Mavis Bank benefited from strong pricing for coffee in international markets and increased share of the crop.

Associate company New Castle had an improved year operationally in 2015, with PanJam’s share of results amounting to $61 million compared to $13 million in 2014.

PanJam noted that New Castle continues to expand its export and distribution of the Walkerswood, Busha Browne and Jamaica Joe lines of sauces and seasonings principally as a result of new distribution arrangements in the USA.

The Courtyard Marriott hotel commenced operations in December 2015.

Property rental income decline was linked to the departure in 2015 of a “prominent New Kingston tenant” who moved into their own building, PanJam said, noting that it was seeking “a high-quality replacement”.

The portfolio benefited from property revaluation gains of $229 million and contribution of $568 million to profit.

Investment income for Panjam fell to $206 million from $257 million in 2014, and its investment management segment posted an operating loss of $91 million versus last year’s loss of $9 million.

PanJam said in its report that slower Jamaican dollar devaluation relative to the United States dollar and strong appreciation relative to the Canadian dollar resulted in reduced foreign exchange conversion gains of $26 million compared to $117 million last year.

This and declines in interest and dividend income were partially offset by reduced impairment charges on available-for-sale securities and improved realised gains on disposal of investments.

PanJam said direct costs of property management fell from $651 million to $562 million, primarily as a result of reduced utility costs.

Staff costs increased by $125 million, driven by an increase of $92 million in pension costs arising from a one-time uplift to the benefits of the PanJam pension plan.

Finance costs fell to $496 million in 2015 from $507 million in 2014.

Group results were affected by unrealised fair value losses on Sagicor Group Jamaica Ltd available-for-sale securities arising in the latter half of 2015, reflecting volatility in global bond prices.

During the year just ended PanJam grew assets to $28.0 billion, compared to $26.4 billion at December 31, 2014.

Earnings per stock unit of $15.19 for the year compared to $13.55 for 2014.

PanJam noted that book value per stock unit of $103.68 at year end was an increase on $100.81 per unit at the end of 2014.