Large real estate mutual fund Eppley Caribbean Property Fund – Value (CPFV) grew earnings 50 per cent for the quarter ending June 2024, but it was the reverse for affiliated company Eppley Limited whose profit plummeted to a new quarterly low over a five-year period.

CPFV, which owns over 1.1 million square feet of tenanted, commercial real estate assets across Jamaica, Barbados and Trinidad, reported quarterly profit of BDS$1.12 million compared to BDS$734,139.8 a year earlier. That’s 52 per cent more than the company made a year earlier.

The company attributed the rise in quarterly performance to contractual rent increases, increased occupancy and the additional income from its recent acquisitions, the most recent being a portfolio of commercial real estate assets from JN Bank Limited in a sale and leaseback transaction valued at J$4.55 billion.

The acquisition comprises 22 buildings totalling approximately 267,000 square feet and was purchased through a special purpose vehicle jointly owned by the CPFV and the Caribbean Mezzanine Fund II. The deal resulted in the company owning and managing 29 buildings in Jamaica directly or through its subsidiaries.

CPFV has been vocal about its plans to continue scouting for the markets for properties that fit its portfolio.

While earnings trended up for CPFV, profit of Jamaican company Eppley Limited plummeted.

The profit after tax attributable to shareholders for the first half of 2024 totalled J$110.8 million, representing a 68 per cent decline from the J$351.5 million recorded in the second quarter of the previous year.

However, when excluding the J$229-million gain on bargain purchase recognised in the second quarter of 2023, the decrease in profit after tax for June 2024 compared to June 2023 is 9 per cent.

“This decline is primarily due to higher financing costs and a reduced foreign exchange gain compared to the prior period,” Chairman PB Scott said in explaining the results.

At the close of June 2024, Eppley Limited owned a J$6.7-billion investment portfolio consisting of cash, loans, leases, receivables and investments in its mezzanine, real estate, infrastructure and asset management joint ventures, subsidiaries and associates.

The average normalised income yield of its portfolio is 15 per cent.

Scott said the company remains committed to “building a sustainable business” with a continued focus on expanding its fee-based income by increasing assets under administration and management, as well as maintaining and growing its real estate portfolio to deliver consistent high-quality returns.

“Additionally, we consistently exercise prudent risk practices in our deployment of capital in the form of commercial loans and leases,” he said.

Looking ahead, Scott says he is optimistic about future growth.

During the quarter, the company made strategic internal adjustments, including the addition of a new chief investment officer and chief executive officer.

After almost a decade with Eppley Limited, General Manager Justin Nam exited the company. His resignation took effect on May 31.

The company has since announced former National Commercial Bank executive Raymond Donaldson as CEO, while Jeffrey Brown joined Eppley as chief investment officer.