PanJam Reports 2017 Profit of $4.1 Billion
KINGSTON, JAMAICA: PanJam Investment Limited (PanJam or the Group) increases profits and announces investments to grow real estate and private equity portfolios.
Net profit attributable to shareholders for the year ended December 31, 2017 amounted to $4.1 billion, an increase of 2 per cent over the previous year’s performance. Earnings per stock unit were $3.93, compared to $3.86 for the 2016 financial year.
Stephen Facey, PanJam’s Chairman and CEO, said “Our core operations delivered strong results in 2017, with operating profit more than doubling year-over-year. When combined with solid performances from our associated companies, net profit attributable to shareholders increased by 20 per cent, excluding one-off gains on the disposal of our share of Hardware & Lumber and Mavis Bank Coffee Factory in 2016.”
Property income increased by 29 per cent to $1.8 billion, reflecting rental income and property revaluation gains of $1.3 billion and $485 million, respectively. Investment income of $423 million also improved, driven by fair value and realized gains, which collectively doubled relative to 2016.
Share of results of associated and joint venture companies grew by 6 per cent to $3.9 billion, the majority of which was generated by PanJam’s stake in Sagicor Group Jamaica Limited. The Group recorded positive contributions from its investments in the hospitality industry, including the Marriott Courtyard hotel in New Kingston and the Aloft Miami Airport hotel, which commenced operations during the year.
PanJam’s minority position in New Castle Company Limited (owners of the Walkerswood and Busha Browne brands) continued to generate value. As such, the Group increased its ownership stake from 25 to 33.3 per cent, representing an ongoing focus on investing in Jamaican brands with a global reach.
The Group also announced that it is now the sole owner of Kingchurch Property Holdings Limited, the redeveloper of the Oceana property in Downtown Kingston. At the end of 2017, PanJam acquired Downing Street (Caribbean Place) Limited, the entity in which its former partners held their 50 per cent stake.
Facey explained, “PanJam has consistently believed in Kingston’s appeal as a destination. Our full ownership of Kingchurch represents our continuing commitment to the revitalization of Downtown Kingston, and the development of Oceana is part of our contribution to that pursuit.”
During the year, PanJam also purchased the tenanted commercial property at 8 Olivier Road in Kingston, an acquisition in an area that has performed well for the Group.
In June, PanJam issued $2.7 billion of bonds. The funds raised were used to repay maturing debt, purchase the Olivier Road property and meet other corporate needs. The Group believes that the prevailing interest rate environment continues to incentivize the private sector to increase investment, which should bode well for the economy. However, PanJam continues to manage its debt levels prudently in order to protect the strength of its balance sheet.
“Our goal is to create long-term shareholder value by investing in Jamaica, and our return on opening equity of 16 per cent represents the continued positive results of this strategy. 2017 was an exciting year for us at PanJam. We look forward to sharing the details of our activities with investors at the upcoming Annual General Meeting in May,” Facey stated.