Company records after-tax profit of J$59.6 million
UWI Mona campus student accommodation provider, 138 Student Living Jamaica Limited has managed to contain operating costs, resulting in the company chalking up after-tax profit of J$59.6 million during the December 2021 quarter.
During the period under review, the company, which trades as 138SL operated 1,464 world-class rooms at its four locations on the campus consisting of 1,692 beds.
Company Chairman Ian Parsard stated that the positive quarterly performance, “continues to be positively impacted by previous measures implemented to contain operating costs”.
Parsard added: “In addition, the positive results benefitted from both the variation claims relating to Irvine Hall and the UWI 90 per cent occupancy guarantee.”
Other positive news is the fact that 138SL has reached a positive conclusion with the campus administration regarding matters such as the 2015 Concession Agreement governing 138SL Restoration.
The agreement now has a revised financial model that reflects Irvine Hall “as built” and this will significantly reduce the possibility of any discrepancy between the two parties. In addition, the target internal rate of return for the 2015 CA has been agreed at nine per cent ( a reduction from the original 12.5 per cent).
COVID-19 impact and response
The COVID-19 pandemic continues to have a negative impact on 138SL’s occupancy and revenues, as the real estate outfit is now feeling the effects of the fourth wave with no clear indication of when normalcy will return. During the period, occupancy recovered from below 30 per cent in the prior year to an average of 50 per cent during the current period.
This is helped by the UWI increasing its number of face-to-face classes. At the same time, the company’s management continues to place high priority on the health and safety of our employees and residents, demonstrated through measures that have been implemented to ensure the safety of our residents and staff and to continue our operations within the space of the new normal.
Parsard highlighted that, “staff members have been very instrumental in the implementation of these measures and have responded positively as the need arose”.
He added: “The slow take up of the COVID-19 vaccines among the population is a major cause of concern. The result of which is seen in the increase cases of affected persons.”
In the meantime, the management will continue to monitor the impact of the pandemic on the business operations and to be proactive in our approach with Parsard declaring, “we remain grateful to our employees, our various partners, residents and other stakeholders who have helped us to navigate during these very challenging times”.