Although half of its financial year (FY) was disrupted due to the novel coronavirus pandemic causing most of the students at The University of the West Indies, Mona, (UWI) to leave its halls, 138 Student Living Limited (138SL) was able to generate $316.8 million in consolidated net profit compared to the $23 million generated in the prior financial year (FY).

The company which provides rental facilities, renovation and construction of dorms at The UWI managed to grow its revenue by 26 per cent to $1.33 billion. This was supported by its 65-year concession agreement with The UWI which guarantees the company income even if the total occupancy of the halls it manages falls below 90 per cent. Before the pandemic, occupancy was at an all-time high of 99 per cent, but it has fallen well below 20 per cent since then.

As a result of staff costs being reduced by 30 – 35 per cent, consolidation of students to one hall of residence and reduction of maintenance activities plus capital expenditure, administrative expenses fell by five per cent to $757.6 million which left the 138SL’s operating profit 118 per cent higher at $567.7 million. After reduced finance costs and tax credits, 138SL’s earnings per share came up to $0.76 compared to the $0.06 in the prior FY. However, due to the recent internal valuation of 138SL and 138SL Restoration Limited, a $1.33 billion deficit was recognised in the other comprehensive income of the company as the service concession rights was measured at 13 per cent lower relative to the 2019 FY’s value of $10.18 billion.

With UWI’s 2020/2021 academic year remaining online, barring some students in specialised faculties, 138SL has engaged its financiers and bankers to ensure that the company can sustain itself throughout the period. The company’s auditors in their notes indicated that 138’s 2021 FY will be impacted with the operation expected to return to 80 per cent of normal operation by 2022 and normality by 2023. Despite these circumstances, 138SL’s current assets remain 51 per cent higher at $946.5 million and cash of $43.5 million, despite the 9 per cent reduction in asset value and 18 per cent decline in shareholder’s equity. The UWI currently represents 87 per cent of the $962.3 million in receivables owed to 138SL. The company has also made provisions for $342.4 million in credit loss.