The completion of Stanley Motta Limited’s (SML) new 11-storey building in the capital and higher lease rates contributed to the 23 per cent increase in consolidated revenue to $163.40 million during the first quarter.

SML reached structural completion of its unit 1 building during 2024 after two years of construction and US$12 million in debt funding to construct the new building. Although the building still had some tenants executing their buildout in Q1 (January to March 2025), the new building will positively contribute to the growth in SML’s revenue for the remainder of 2025.

SML owns 58 Half-Way-Tree Road, which currently consists of five buildings serving a range of external and related-party clients. A business process outsourcing company (BPO) Alorica currently contributes about 78 per cent of group revenue while the other 22 per cent came from tenants such as General Accident Insurance Company Jamaica Limited (Genac) and Eppley Limited. The new unit 1 building increased the rentable space on the property by 40 per cent and should shift the tenant composition to 170,000 sq ft for BPO tenants and 140,000 sq ft for non-BPO tenants.

Despite the 13 per cent rise in administrative expenses to $56.37 million, SML’s operating profit/net operating income grew 30 per cent from $82.39 million and $107.35 million. Funds from operations, a metric used by real estate firms, also improved 45 per cent from $66.9 million to $96.7 million. With finance costs moving down 32 per cent to $13.19 million and tax remaining flat at $3.50 million, consolidated net profit grew 52 per cent from $59.80 million to $90.66 million with earnings per share (EPS) at $0.12. Trailing 12 months EPS stood at $1.51.

Canopy Insurance Limited announced earlier this month that it had fully occupied its floor at unit 1. Canopy, a joint venture between Musson (Jamaica) Limited and GraceKennedy Limited, previously occupied unit 1 when it had 8,266 sq ft of rental commercial office space. Canopy moved to New Kingston over the two years while the new unit was constructed which now has 84,000 sq ft of rental commercial office space. Productive Business Solutions Limited, a subsidiary of Musson Group, will occupy two floors while Eppley Limited, a company chaired by Paul B Scott, will occupy a floor. The Jamaica Social Investment Fund will occupy two floors while Bowl and Spoon Limited will occupy a floor.

Stanley Motta’s total assets grew to $11.54 billion during the quarter with investment properties valued at $11.28 billion and current assets at $145.40 million with cash at $68.80 million. Total liabilities decreased to $2.83 billion with shareholder’s equity at $8.71 billion or a book value of $11.49 per share.

Stanley Motta’s stock price closed Tuesday at $6.89, which left the stock up six per cent in 2025 with a market capitalisation of $5.22 billion. SML’s stock price peaked at $8 on January 20, the current 52-week high for the stock. This translates to a price to book ratio of 0.60 times.

With SML’s unit 1 construction completed, investors will look to see if Stanley Motta will return to its three dividend payments during the year. SML paid a dividend once during 2022 and 2024 with one dividend paid during 2025. Also, investors will await to see what the company will do regarding the company’s expanded capacity to increase the authorised share capital and issue new shares after the September 2024 annual general meeting. The company’s initial 2024 AGM notice had the company proposing to increase the authorised share capital by 500 million ordinary shares.

SML will hold its seventh AGM at 10 am on September 22 by the General Accident training room at 58 Half Way Tree Road. Jacqueline Watson’s election as a director will be one of the agenda items. Watson was appointed a director on February 13 following the resignation of Andrea Kinach on the same date. Watson is the group chief financial Officer for Eppley Limited.