PanJam Investment Limited boasts a long track record of consistent and growing profits based on a diversified portfolio of investments.
Q3 2018 Financial Highlights
Net profit attributable to stockholders of $1,930 million (2017: $1,215 million) for the quarter and $3,739 million (2017: $2,974 million) for the nine months
Return (annualised) on opening equity of 16% (2017: 15%)
Basic earnings per stock unit of $1.84 (2017: $1.16) for the quarter and $3.56 (2017: $2.83) for the nine months
Ordinary dividends per stock unit of $0.75 declared and paid through September 30, 2018 (2017: $0.60)
Book value per stock unit of $31.38 at September 30, 2018 (December 31, 2017: $29.03)
Net profit attributable to shareholders for the nine months ended September 30, 2018 is up 26% relative to last year. This is largely the result of stronger investment and property income.
Net profit attributable to shareholders for the quarter ended September 30, 2018 amounted to $1,930 million, compared to $1,215 million in the 2017 3rd quarter, an increase of 59%, equivalent to basic earnings per stock unit of $1.84 compared to $1.16 for the same period in 2017. Net profit attributable to shareholders for the nine months ended September 30, 2018 amounted to $3,739 million, 26% above the 2017 comparable figure of $2,974 million, equivalent to basic earnings per stock unit of $3.56 in 2018 and $2.83 in 2017.
Investment income in the third quarter of 2018 was $1,064 million versus $202 million in the prior year. The improvement mainly reflects higher unrealized and foreign exchange gains. Year to date investment income of $1,209 million more than doubled (2017: $332 million), due to improved unrealized and foreign exchange gains and dividend income, which offset reduced realized gains and interest income.
Property income increased by 19% for the quarter to $462 million from $388 million in 2017, and by 22% for the year to date moving to $1,367 million from $1,119 million. Higher rental income resulted from more space leased on average as well as contractual rate increases; revaluation gains benefited from improving occupancy; and net lease income (i.e. expense reimbursement) was driven higher mainly by increased utility costs.
Other income for the quarter and the year-to-date decreased to $35 million from $53 million and $96 million from $142 million respectively, driven by non-recurrence of insurance and loan recoveries.
Group operating profit for the nine months more than doubled to $1,466 million compared to $543 million during 2017, driven by the improvements in investment and property income partially offset by lower other income and higher operating expenses (up 15% to $1,206 million from $1,049 million).
Finance costs for the year-to-date increased by $6 million to $447 million, resulting from higher average debt balances mostly offset by lower interest rates.
Our segment results reflect nine-month profit before tax of the property segment improving to $347 million in the current year from $247 million in 2017. The investments segment posted profit before tax of $3,564 million versus $2,644 million in 2017.
The results of associated companies consist principally of our 31% investment in Sagicor. We also hold minority positions in New Castle Company Limited (owners of the Walkerswood and Busha Browne lines of sauces and seasonings), Caribe Hospitality of Jamaica Limited (owners of the New Kingston Courtyard Marriott Hotel) and Chukka Caribbean Adventures (“Chukka”).
Our share of results of associated and joint venture companies for the third quarter was $1,183 million, bringing the year to date total to $2,993 million versus $2,966 million for 2017, an increase of 1%. This includes the nine-month total share of earnings from Sagicor of $2,757 million, 3% lower than the prior year figure of $2,839 million. Sagicor’s results reflect generally strong business line performances offset by write-downs relating to certain financial instruments, particularly Barbadian sovereign bonds.
Total assets at September 30, 2018 amounted to $45.3 billion, compared to $39.4 billion at December 31, 2017, an increase of 15%. Stockholders’ equity increased 9% to $33.1 billion (December 31, 2017: $30.5 billion), which equates to a book value per stock unit of $31.38 (December 31, 2017: $29.03).
According to the Statistical Institute of Jamaica’s July 2018 labour survey, the unemployment rate has fallen to 8.4%, having been as high as 12.9% just two years earlier. The most recent GDP statistics show a 2.2% annualised growth rate for the June 2018 quarter, while the Jamaica Stock Exchange continues to reflect strengthening optimism, up 24% for the calendar year through the end of September.
PanJam has increased its exposure to Jamaican assets in light of this favourable environment, which we expect to remain for the short and medium term. We continue to seek additional opportunities in this regard.