Shareholders of Sagicor Real Estate X Fund Limited (XFUND) are set to receive their first dividend payment in nearly eight years after recent changes made to its equity structure eliminated accumulated losses that previously prevented shareholder distributions.

X Fund’s board of directors declared a $0.10 dividend totalling $224.30 million payable on July 14 to shareholders on record as of June 23. The company last paid a $314.03 million dividend or $0.14 per share in August 2017.

While X Fund had been generating profits from its hotel operations in Florida and commercial property in the Cayman Islands, it was unable to pay a dividend due to a $3.21 billion accumulated deficit at the stand-alone company level. The company’s board recently approved a move to reduce its share capital and eliminate the accumulated deficit.

“The approved adjustment represents an accounting reclassification within shareholders’ equity whereby amounts standing to the credit of surplus on ordinary shares will be applied to eliminate the negative balance in retained earnings,” X Fund stated in a prior disclosure.

Based on the dividend declared, it can be inferred that at least $3.43 billion was transferred from share capital to the company’s retained earnings. This movement did not change the equity balance of the company but enabled it to be in compliance with the law to declare the dividend.

X Fund’s 10 largest shareholders collectively own 93.82 per cent of the company’s issued shares and include managed funds, such as pooled funds, unit trusts, and pension plans. This dividend supports these entities in meeting obligations to beneficiaries and investors.

The dividend comes against the backdrop of the company’s first-quarter report which saw its DoubleTree by Hilton Hotel (DTO) in Orlando, Florida, grow revenue by two per cent to $2.30 billion due to higher occupancy levels. However, lower interest income and an unrealised loss pushed total revenue down three per cent to $2.37 billion.

Improved operating performance also supported the company’s ability to resume shareholder distributions. A reduction in hotel expenses resulted in total expenses declining five per cent to $1.80 billion. This translated to a four per cent increase in profit before tax to $572.55 million, but net profit contracted three per cent to $391.47 million due to higher taxes.

X Fund’s hotel operations saw net profit rise 42 per cent to $452.43 million during the first quarter. The improved earnings come at a time when the United States of America is expected to see higher visitor arrivals in the coming months due to the FIFA World Cup.

“The US tourism industry is expected to recover for the remainder of 2026, with international travel anticipated to grow, ranging from 3.7 per cent to 10.2 per cent, contingent on a rebound of in-bound travel and World Cup-related activities,” X Fund’s Q1 report stated.

X Fund’s total assets increased eight per cent during the quarter to $30.48 billion due to an increase in cash resources to $586.95 million. Total liabilities and shareholder’s equity stood at $6.62 billion and $23.87 billion, respectively. The book value for X Fund is $10.64.

X Fund closed Monday at $9.91, which leaves it up 24 per cent in 2026 with a market capitalisation of $22.22 billion. The company is scheduled to host its annual general meeting today at 9:30 am at the Sagicor Group Jamaica Auditorium in New Kingston.