Following recent movements of Sagicor Real Estate X Fund Limited’s board of directors, a question has arisen as to who chairs the board of the real estate-focused company.

A recent disclosure posted to the Jamaica Stock Exchange (JSE) noted that Chairman Vinay Walia and Carlton Barclay resigned as directors effective February 29. John Bailey and Howard Mitchell were subsequently appointed directors on March 1. There was no accompanying information as to who will chair the six-member board.

X Fund was first chaired by Richard Byles from June 2013 until June 2019 when he took up his role as governor of the Bank of Jamaica. Sagicor Group Jamaica Limited president and Chief Executive Officer (CEO) Christopher Zacca took on the chairman role until September 2022 when he and Dodridge Miller resigned when Sagicor Group Jamaica sold its remaining interest in X Fund. Walia chaired the board from then until his resignation.

At X Fund’s 2022 annual general meeting, it was stated that a more independent governance structure was being pursued at the time for X Fund’s growth strategy. As a result of the director changes, Stephen McNamara and Peter Pearson are now the longest-serving directors going back to November 2013, followed by Colin Steele and Bruce James who have served since October 2018. X Fund now has a fully independent board of directors, with Brenda Lee-Martin serving as its CEO, along with Sagicor Property Services Limited (SPSL) providing management services.

X Fund had a relatively positive year for top line growth, as its total revenue rose 13 per cent to $8.07 billion from higher capital and foreign exchange gains. Hotel revenue marginally rose four per cent to $7.37 billion from its operations at the DoubleTree by Hilton Hotel (DTO) in Orlando, which benefited from a 3 per cent rise in average daily rates.

However, DTO’s earnings before interest, tax, depreciation, and amortisation (EBITDA) declined 7 per cent from $2.02 billion to $1.88 billion due to a sharp jump in indirect operating costs. The overall hotel segment saw its net profit cut by a third from $566.98 million to an estimated $385.55 million for 2023.

X Fund’s overall consolidated operating profit grew 19 per cent to $1.25 billion. After accounting for lower finance costs and higher taxes, consolidated net profit increased 39 per cent to $648.02 million, with earnings per share at $0.29.

X Fund, as a stand-alone company, saw its operating loss rise by 158 per cent to $322.56 million due to the jump in its management service cost to SPSL from $43.14 million to $298.44 million. SPSL’s fee was adjusted from 0.75 per cent to 1.25 per cent for 2023, with that fee to be 1.5 per cent going forward. SPSL’s fee is derived as a percentage of X Fund’s net average assets for the year.

X Fund’s consolidated total assets improved eight per cent to $30.91 billion, with its non-current assets making up the bulk of funds at $22.13 billion and cash and cash equivalents, excluding restricted cash, of $5.73 billion. X Fund’s key assets include the DTO property, units held in the Sagicor Sigma real estate portfolio, and largely financial assets of bonds and short-term deposits. Total liabilities and shareholder’s equity were $10.08 billion and $20.83 billion, respectively.

X Fund last paid a dividend in August 2017, with the company currently having an accumulated deficit of $2.89 billion. X Fund’s stock price closed Monday at $7.49, which leaves it down 6.49 per cent in 2024 with a market capitalisation of $16.80 billion. X Fund’s top 10 shareholders, which largely comprise of pension funds and collective investment schemes, controlled 93.05 per cent of the company at the end of 2023.

“X Fund continues to carefully monitor and assess the current economic environment. We would like to thank our stakeholders for the confidence they continue to place in us as we continue to look forward to the future with optimism,” stated the report signed by Walia and James.