Following numerous acquisitions throughout the year, Eppley Caribbean Property Fund – Value Fund's (CPFV) net profit attributable to shareholders rose by 203 per cent from BB$1.89 million to BB$5.75 million ($436.73 million).
This was driven by the fund's move to diversify its reach across the English-speaking Caribbean which saw net rental income improve by 36 per cent to BB$4 million ($304.20 million). Though fair value gains decreased to BB$941,410 for the 2021 financial year (September 30), it saw a turnaround in its share of results from its associates and recorded a share of profit of BB$3.52 million compared to a loss of BB$2.53 million. Along with interest and other income, total investment income climbed by 100 per cent to BB$9.19 million ($698.42 million).
Operating expenses grew by 25 per cent to BB$3.17 million largely due to the increase in interest expense from the new loans booked in the year and higher fund management and investment advisor fees totalling BB$1.45 million to Eppley Fund Managers Limited. Despite these increased expenses, profit before taxation rose by 193 per cent to BB $6.02 million while consolidated net profit amounted to BB$5.76 million. Total comprehensive income rose to BB $7.24 million arising from exchange differences on translation of foreign operations.
Total assets of the fund rose by 17 per cent to BB $126.97 million ($9.65 billion) as a result of the growth in investment properties and investments in associated companies and joint arrangements. Despite initially acquiring 50 per cent of Mall Plaza, the joint venture partners purchased an additional 10 per cent interest reducing control to 40 per cent. Mall Plaza delivered B$2.06 million ($156.61 million) in rental income and total comprehensive income of BB$5.19 million. CPFV created ECPF Property Holdings (Trinidad) Limited to hold two properties purchased in Trinidad and Tobago valued at BB $2.59 million.
Total liabilities increased by 87 per cent to BB$26.28 million due to the increase in loans payable to BB$24.66 million. Equity attributable to shareholders grew by six per cent to BB $100.69 million with 499,269 shares valued at BB$339,870 being repurchased on the Jamaica Stock Exchange.
“Despite challenges created by COVID-19, the portfolio has remained resilient and remains well positioned in the existing investment climate. The Value Fund's performance in 2021 validated our strategy to expand the scale and scope of our portfolio, increase our presence in Jamaica and diversify into industrial assets. The Value Fund recorded the most profitable financial year in its history, has a healthy pipeline of acquisition opportunities and is well positioned to increase its profitability in 2022,” stated chairman of CPFV Nicholas Scott in the shareholder report.
— David Rose
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