JM | Oct 3, 2022

First Rock shares buy-back paying handsome initial dividends

/ Our Today

Ryan Reid, co-founder and CEO of First Rock Group. (Photo: Facebook @FirstRockRealEstate)

Durrant Pate/Contributor

First Rock Real Estate Investments shares buyback is working and working well with the share price appreciating last week.

The company’s share price improved by J$1.03 cents last week having opened the week last Monday on J$12.66 and closing the week on Friday at J$13.69. The share price gain was made possible by another purchase of a block of shares by the company on September 23.

First Rock advised that a total of 250,000 shares US dollar shares and 80,000 Jamaican dollar shares were purchased under the company’s share buy-back program. Having purchased 100,000 shares on the open market on September 7, First Rock purchased a second block of shares on the open market.

First Rock purchased a total of 250,000 of its shares on the open market during the period from September 15 to September 19. The company has also advised of the purchase of 40,000 shares on September 15, 2022. 

The shares buyback plan initiated last month continues to gather momentum. Having been trading below its initial public offer price of J$16.67 and US$0.12 two years ago, First Rock is seeking to unlock value by returning cash to shareholders, who want to exit the investment.

Logo of First Rock Real Estate Investments. (Photo: Facebook @FirstRockRealEstate)

In the converse, with remaining shareholders First Rock can increase earnings per share, all else being equal. The share buyback exercise was delayed for six months when it was supposed to commence during the first quarter of this year but instead became available on September 1, 2022.

The open market share buyback exercise should not exceed 10 per cent of the company’s capital, which amounts to US$3.4 million, as at March 30, 2022.