Durrant Pate/Contributor

First Rock Real Estate Investments has returned to profitability, as the Jamaican-listed property developer transitions into a fully-fledged real estate investment trust (REIT).

The Ryan Reid-led company delivered a strong start to the financial year, posting shareholders’ profit of US$ 539,023, which yielded an earnings per share (EPS) of US$ 0.002 for the quarter ended March 31, 2025. This performance reflects the early results of First Rock’s ongoing strategic repositioning toward becoming a fully-fledged REIT. 

Speaking with Our Today on the stellar performance, Reid emphasised, “the company is currently focused on commercial real assets outside of Jamaica, resulting in a massive increase in its rental income, registering a 1,000 per cent increase. Of significant note is a 69 per cent reduction in expenses for the company, which has been on an expense reduction thrust.”

Giving a positive sounding to shareholders, Reid remarked, “It is expected that once the recasting of its business model crystallises, then it will return to dividend distribution.”

Big jump in rental income

Rental income closed on US$259,179, representing a marked increase over the first quarter of 2024, underscoring the success of First Rock’s asset realignment strategy, particularly the acquisition of premium income-generating commercial properties across the Caribbean.

Additionally, the company exhibited realised and unrealised gains on investment properties, which increased to US$1.6 million, representing a 336 per cent growth over the period ended March 2024. 

FirstRock also achieved a 70 per cent reduction in its overall administrative and general expenses, which totalled US$733,727, reflecting its continued emphasis on cost optimisation and operational efficiency. 

Financial position 

FirstRock maintains its strategic focus on disciplined balance sheet growth. As at March 31, 2025, total assets of the group stood at US$ 59.5 million, representing a four per cent increase over the comparative period in 2024. 

This growth was partly driven by the acquisition of property in Coyol, San Jose, Costa Rica, earmarked for the construction of a new KFC restaurant and a distribution facility. Shareholders’ equity amounted to US$26.2 million, while liabilities stood at US$ 33.4 million as at March 31, 2025, yielding a debt-to-equity ratio of 1.27. 

This reflects a prudent use of leverage in line with industry norms for the real estate sector. The company has two clear business strategies, real estate and real sector investments, which are pursued via its six subsidiaries, one associate and two joint ventures.

Positive outlook

Looking ahead, First Rock chairman, Norman Reid (father of Ryan Reid), says the positive performance in the first quarter is a strong indicator that the execution of this strategy is taking hold, with early results reflecting progress in diversifying and strengthening its asset base. First 

Rock, according to Reid, “will continue to focus on acquiring premium, income-generating commercial assets across the Caribbean, while optimising the portfolio by divesting non-income-generating properties, thereby concentrating efforts on assets that enhance the group’s income base and long-term growth potential.

He cites other commercial tenanted properties that are aggressively being pursued in Latin America. With these efforts in place, Reid comments that the group expects to see continued progress toward its REIT transformation, with a significant achievement expected by the third quarter of 2025. 

This evolution, the elder Reid adds, “will allow the group to generate consistent earnings, increase diversification, and create long-term value for shareholders.”