KINGSTON, Jamaica — KINTYRE Holdings reported a sharp rise in first-quarter profit after the estimated value of its real estate holdings increased, even as the company spent more cash running its core operations than it generated from them.

The company reported net profit of $531.3 million for the three months ended March 31, up from $8.4 million in the same period last year. Total income rose to $565.7 million from $34.1 million.

Nearly all of that increase came from a single source: a $510-million upward revision to the estimated value of investment properties held by its real estate subsidiary, Parallel Real Estate Ventures, which accounted for roughly 90 per cent of total group income during the quarter.

Under international financial reporting rules, companies that own investment properties are required to periodically reassess what those properties are worth on the open market. When the estimated value rises, the increase is recorded as income even though no sale has taken place and no cash has been received.

The value of Kintyre’s investment properties climbed to $767 million at the end of March from $234 million three months earlier — a rise of $533 million recorded largely on paper.

That distinction matters because profit and cash are not the same thing. A company can report large profits driven by rising asset values while still facing pressure on the cash needed to pay suppliers, service debts and fund day-to-day operations.

That pattern was reflected in Kintyre’s first-quarter results.

Excluding the non-cash property gain, the company recorded operating cash outflows of $1.4 million during the quarter, compared with positive operating cash flow of $25.3 million in the same period last year. The deterioration came as the company simultaneously launched several new business divisions, many of which remain at an early stage of development.

The company also ended the quarter in a net overdraft position. With $2.2 million in cash set against a bank overdraft of $3.4 million, Kintyre’s net cash position stood at negative $1.2 million — an improvement from negative $3.6 million in the corresponding period of 2025, but still below zero.

For many investors, the ability to consistently generate cash from operations is considered a more reliable sign of long-term financial health than gains linked to rising asset values.

At the same time, the property revaluations substantially strengthened the company’s reported financial position. Total assets climbed to $1.68 billion from $1.12 billion three months earlier, while shareholders’ equity rose 76 per cent to $1.23 billion.

One feature of the balance sheet that may draw investor attention is the scale of balances between Kintyre and related parties. At the end of March, the group was owed $197.3 million by related parties — entities or individuals linked to the company through common ownership or management — representing more than half of total current assets. The group simultaneously owed $130.4 million to related parties on the liabilities side.

Such transactions are not unusual in smaller conglomerates at an early stage of expansion, but they also mean that a significant share of the company’s liquid assets and obligations sits outside fully arm’s-length commercial relationships.

Administrative and acquisition expenses rose 137.7 per cent to $22.2 million during the quarter as the company absorbed start-up costs linked to the launch of its Spirits Division and the rollout of its water bottling infrastructure.

The expansion agenda continued on several fronts. In January, Kintyre completed the acquisition of Kulcha Rum, adding a spirits business to the group and beginning a rebranding exercise for the product line. Its water bottling subsidiary, BOLD, also deployed US$525,000 in automated production equipment and has started supplying commercial customers through Miracle Corporation. The plant has production capacity of up to $75 million in bottled water products per month.

On the real estate side, the Chalet at Bengal Beach — a 26-unit beachfront residential development in Discovery Bay, St Ann — received full regulatory and environmental approvals during the quarter and is now ready for development. Management is weighing whether to build out the project directly or sell the approved site to another developer. Subdivision of the company’s Stony Hill landholding into individual lots is also underway.

Beyond those operations, Kintyre is advancing plans for a 170-acre quarry development in Clarendon and continuing the proposed acquisition of outdoor advertising company OOH Media Services, which would expand its media portfolio beyond existing operations under Visual Vibe.

Kintyre is now building operations across real estate, spirits, water bottling, media and quarrying. Whether that expanding portfolio can eventually generate sufficient cash earnings to match its growing asset base is likely to remain the central question for investors in the quarters ahead.