Slight increase in occupancy during current second quarter
Accommodations provider, 138 Student Living Jamaica Limited (138 SL) has seen its occupancy levels at the University of the West Indies (UWI) Mona campus, peaking at 94 per cent.
Under the Concession Agreement with the Mona campus, 138 SL is guaranteed a 90 per cent occupancy but average occupancy during the first quarter peaked at 94 per cent, thus resuming normal operations given the return to face-to-face classes. The management projects that this trend will continue, as students seek for quality accommodation in a secured environment.
“We expect to see a slight increase in occupancy in the second quarter. Our short-term rental business continues to show resilience contributing J$37.4 million of revenue during the quarter with more than ten groups being hosted during the quarter,” 138 SL Chairman, Ian Parsard advised.
J$81-million net profit
For the December 2022 quarter, the publicly listed company declared a net profit of J$81 million, as revenue increased by 24 per cent when compared to the corresponding period last year. The increase was driven by an increase in occupancy from short-term rental business as well as long-term occupancy rates being above 90 per cent, a general increase in room rates for long-term resident and the Irvine Hall variation claim.
For the quarter, 138 SL recorded an increase of 52 per cent profit before taxation when compared to December 2021 and a 36 per cent increase in net profit when compared to December 31, 2021. Assets as at December 2022 amounted to J$9.8 billion and Shareholders’ Equity at J$4.8 billion.
The lower receivables are due to arrangements arrived at with the UWI, Mona for settlement of outstanding balances. Student receivables balances were reduced significantly, as 138 SL continues to enforce strict collection measures.
The company’s net cash position from operations grew significantly primarily due to the return to normalcy of revenue from long-term accommodation, the increase in short term rentals revenue and the strict collection measures that are in place. In his latest quarterly report to shareholders, Parsard declared “we continue to be nimble in our approach to managing the business recognizing that good fiscal management is essential for long term sustainability”.
During the period under review, 138 SL operated 1,464 world-class rooms at its four locations on the UWI Mona Campus, consisting of 1,692 beds.