By Durrant Pate/Contributor

Nearly six years on, the Irvine Hall variation claim remains unsettled and continues to be an albatross around the neck of University of the West Indies (UWI) Mona accommodations provider, 138 Student Living (SL).

The claim refers to compensation demand by 138SL against the campus administration arising differences from the original 2015 accommodation concession agreement between the parties and the final, “as-built” configuration of Irvine Hall, which changed from intended double rooms to largely single rooms. The claim, which was initiated around 2019-2020, has been subject to long-term negotiations between the two parties.

In early 2022, 138SL reported that the parties were finalising a revised agreement reflecting Irvine Hall’s new configuration, intended to reduce the discrepancies. However, to date, negotiations to conclude the outstanding issues related to certain items in the claim are in the final stages, with the publicly traded entity reiterating its commitment to bringing an amicable closure in the shortest possible time.

In the meantime, the accommodations provider says it remains focused on operational efficiency, disciplined cost management, and sustainable profitability. Negotiations with the Mona campus regarding the Irvine Hall Concession Agreement are ongoing and at an advanced stage. 

Unresolved claim retarding profitability 

Company Chairman, Ian Parsard, acknowledges, “The claim has been a major factor in 138SL’s financial performance, often cited alongside the 90% occupancy guarantee to explain profitability.” Profit from operations for the December 2025 quarter contracted to $171 million, a 5% decline relative to $180.1 million a year ago. 

The reduction was influenced by the unresolved Irvine Hall variation claim and lower interest income on receivables due from UWI, Mona. After accounting for finance costs, pre-tax profit amounted to $102.2 million, broadly in line with the prior year’s performance.

Net profit closed the quarter at $92.7 million, reflecting a 12% increase over the comparative quarter. Earnings per stock unit (EPS) for the quarter improved to $0.17, compared with $0.15 in the prior year. 

Revenue of $405.6 million, representing a 1% decline compared with $411.7 million in the same period in 2024. This decline was primarily attributable to reduced income recognition from claims under the 138SL Restoration Concession Agreement.

Despite this, operational performance remained strong. Average occupancy increased to 98%, up from 97% in the preceding quarter, reflecting sustained demand for student accommodation facilities.

138SL’s total assets stood at $9.1 billion, with non-current assets accounting for 90% ($8.2 billion) of total assets, while current assets represented 10%, consistent with the prior year. Current liabilities closed on $1.5 billion, reflecting a reduction of $4.4 million from the $1.5 billion recorded at the end of the previous financial year. 

Hurricane mitigation measures continue

Following the recent passage of Hurricane Melissa, which impacted the western and northern regions of the island, Persad reports that 138SL continues to monitor and implement mitigation measures to safeguard its operations.

The company remains steadfast in its commitment to providing safe, comfortable, and affordable housing solutions, while upholding the highest standards of governance and stakeholder engagement.