Operating cost for March 2022 quarter was 9% below the comparative period in 2021

Durrant Pate/Contributor

University of the West Indies (UWI) Mona campus residential accommodation provider, 138 Student Living Jamaica has benefitted from variation claims relating to the university’s Irvine Hall and 90 per cent occupancy guarantee.

This resulted in 138 Student Living recording profit before taxation of J$90.1 million and an after-tax profit of J$95.6 million.

This was however insufficient for the entity to posts higher profit than 2021 when pre-tax profit amounted to J$90.8 million and after-tax profit of over a little over J$100 million.

Average occupancy increased for the March quarter by five per cent to 56 per cent, which translates into an increase in revenue and cash flow. There has been a general increase in revenues and profits for two consecutive quarters.

For the current quarter under review, operating cost was nine per cent below the comparative period in 2021. However, finance cost jumped by 62 per cent, as a result of the recent renegotiations in long-term liabilities.

Company remains sustainable; positioning for future opportunities

Nevertheless, the company remains sustainable and positions itself for future opportunities. During the period under review, 138SL operated 1,464 world-class rooms at its four locations on the UWI Mona Campus consisting of 1,692 beds.

The management reports that it continues to manage the business within the parameters of previous measures that were implemented to contain operating costs.

Regarding UWI-related matters, the management says that it remains in dialogue with The UWI to discuss and resolve various matters.

According to the management, “the discussion continues to be positive as we both seek to find an amicable and mutually beneficial working relationship”.

The management also reports that the COVID-19 pandemic continues to impact on occupancy and revenues during the second quarter ended March 2022.

Despite the relaxation by the Government in the COVID-19 measures, management’s policy is to still place high priority on the health and safety of its employees and residents. This is demonstrated through 138 Student Living’s continuation of measures that were implemented to ensure the safety of its residents and staff.

As the company emerges from the pandemic, the management said it “is optimistic that we will see a consistent increase in our occupancy and revenues. We remain grateful to our employees, our various partners, residents, and other stakeholders who have helped us to navigate during these challenging times”.