SAGICOR Real Estate X Fund yesterday reported a 41 per cent, or $202 million, growth in profit for the first quarter ending March 2019.

“Profit attributable to shareholders totalled $695 million for the quarter vs $493 million for the corresponding period last year,” the company said in a news release. “The performance was driven mainly by X Fund’s share of profits from associated company Playa Hotels and Resorts NV, which had a strong winter season.”

In a report to stockholders, the company said: “Having laid the groundwork with the reorganisation of the X Fund Group business model in 2018 from being direct owners and operators of hotels, to a 15.328 per cent ownership of Playa Hotels & Resorts NV (Playa) shares, and partnering with Playa in the management of Jewel Grande Montego Bay, we are focused on the growth and profitability of the group’s investments in the hospitality sector.”

The company also said that during the review period, Jewel Grande Montego Bay (JGM) recorded a profit for the first three months of 2019, contributing net income of $32 million.

“This is a significant improvement on the prior year, which saw JGM recording a net loss of $70 million for the three-month period ended March 2018. The property is now being managed by Playa and has seen marked improvements in occupancy levels and average daily rental rates,” the company added.

It said, too, that DoubleTree by Hilton, at the entrance to Universal Orlando, Florida, continues to perform very well, despite a slightly soft Orlando market, and recorded a profit of $180 million for the first quarter.

“Continuing operations comprise mainly DoubleTree and Jewel Grande, which are both performing well,” the company said, adding that the benefits of the reorganisation have manifested in a lower cost profile as well as improved margins. As such, the outlook remains positive for DoubleTree as well as Jewel Grande.

Pointing out that the X Fund Group’s indirect hotel and commercial operations are comprised of investments in Jamziv, and units in Sigma Real Estate Fund, the company said that its “indirect holdings have performed within expectations with additional rooms expected to come on stream”.

Sigma Real Estate Fund’s holdings in the Jewel-branded hotel operations were also sold to Playa on June 2, 2018, therefore its primary investments now include 39.19 per cent of Jamziv, 20 per cent holding in JGM and ownership of several prime office and retail buildings, industrial/warehousing properties and prime land holdings slated for development across Jamaica.

“We remain focused on the execution of the X Fund strategic plan to be the leading REIF in the Caribbean,” the company said. “We are seeing benefits from the 2018 reorganisation of our business model and anticipate a positive return on investments going forward.”