SYGNUS Real Estate Finance (SRF) has slipped into a net loss even as it advances a pipeline of major real estate developments. Among them is its Lakespen Industrial Park project, which has now secured regulatory clearance to move into the sales phase.

“SRF received final regulatory approval from the Real Estate Board in March 2026, which now allows for the park to convert early lot reservations into binding sale agreements,” its second quarter (Q2) report revealed.

The approval marks a milestone for the $4.05-billion, 55-acre commercial and logistics hub in Lakespen, St Catherine, which is now under construction and expected to deliver 34 serviced lots catering to a range of industrial and distribution needs. Beyond Lakespen, SRF continues to advance several projects across its portfolio. At its flagship One Belmont commercial tower in Kingston, the company expects a third tenant to begin occupancy in 2026, with one tenant already taking up two floors of the nine-storey building. A fourth tenant is also being finalised as interior build-out works continue. The Lakespen Industrial Park follows SRF’s earlier developments, including the $4-billion One Belmont commercial tower that was completed in 2024, and the $1.11-billion Spanish Penwood industrial facility that was completed in 2023, as the company continues to scale its real estate investment portfolio. In St Ann, SRF is advancing plans for its Mammee Bay hospitality project, a 14-acre beachfront property valued at approximately $5.93 billion. The company is currently undertaking approvals, studies and consultations as it moves towards the decision phase on how best to develop the asset.

“We are determined to ensure we unlock the optimal value of this property,” said David Cummings, vice-president & head of real estate & project finance, during its earnings call.

Meanwhile, through its Delphin Holdings joint venture, SRF has acquired a second beachfront property in New Court, Trelawny, spanning approximately 4.9 acres and located near the Sangster International Airport and several major hotel developments. Preliminary design concepts are now being considered, with the site positioned for residential use. The milestone comes against a backdrop of weaker quarterly earnings, with SRF reporting a net loss of $215.9 million for the three months ended February 2026 compared with a profit of $38.2 million in the prior year period. SRF’s weaker quarterly performance largely reflects a comparison with an unusually strong prior period, rather than a sharp decline in its core operations. In the corresponding quarter last year, the company recorded a one-off accounting gain of about $162 million from increasing its stake in Audere Holdings Limited, the joint venture which owns the One Belmont commercial tower, which boosted earnings at the time. That gain did not recur in the current period, and without it, total investment income and net investment income both fell into negative territory. Despite this, the company’s underlying value continued to grow, with book value per share rising by 5.6 per cent to $25.39, supported by a 12.3 per cent increase in shareholders’ equity to $8.82 billion.

“Due to the nature of its business model, SRF may experience fluctuations or ‘lumpiness’ in total investment income and net profits during interim reporting periods, which usually stabilises by the end of each financial year,” its report noted.