PanJam Investment exhibited a much better quarterly performance in March but still ended the period in the red.
The investment company recorded a net loss attributable to shareholders of J$11.1 million for the quarter ended March 31, 2023, which is a far cry from the restated March 2022 net loss of J$323.8 million. Loss per stock unit for the quarter was J$0.01, down from the restated 2022 loss of J$0.31.
The book value per stock unit amounted to J$39.83 at March 2023, slightly up from the J$37.73 restated at March 2022. The ordinary dividend per stock unit declared/paid during the quarter of J$0.225 (2022: J$0.635).
Income from core operations increased by 31.5 per cent compared to 2022, driven primarily by the J$448.1 million of income from PanJam’s ROK Hotel Kingston, Tapestry Collection by Hilton. Investments generated income of J$10.1 million (restated 2022: J$236.9 million) from interest income and foreign exchange gains, which were largely offset by unrealized losses on trading equities.
Property income and operating expenses
Property income continued its steady performance, increasing by 3.7 per cent to J$522.1 million due to annual rental rate adjustments and revaluation gains. Operating expenses totaled J$1.4 billion, more than double the amount in the first quarter of 2022.
While inflationary pressure on wages and direct property costs negatively impacted PanJam’s performance, it incurred one-off professional fees related to its amalgamation with Jamaica Producers Group Limited. Finance costs increased by 14.8 per cent to J$277.1 million (restated 2022: J$241.4 million), due to higher average interest rates and a marginal increase in debt principal.
Contribution from associated companies
PanJam’s associated companies, which includes its 30.2 per cent stake in Sagicor and minority positions in a number of diverse private entities across tourism, business process outsourcing, hospitality, micro-lending and office rental, performed creditably. This resulted in improved revenues to the group during the quarter.
PanJam’s share from associated companies amounted to J$673.2 million, increasing by J$905.0 million when compared to the same period in 2022. This improved performance is due to improved year-over-year performance from all of associates, particularly Sagicor.
PanJam’s chairman, Stephen Facey commented, “it is important to note that PanJam’s share of results of associated companies for the first quarter of 2022 was restated in line with Sagicor’s adoption of IFRS 17, decreasing by J$1.4 billion to a loss of J$231.8 million. As a significant shareholder in Sagicor, we welcome the greater transparency and comparability that IFRS 17 will bring to financial reporting throughout the insurance industry“.
He reiterated the management’s confidence in the long-term prospects of Sagicor and its ability to create value for shareholders, promising that they will continue to monitor the impact of this new accounting standard.
Total assets at March 2023 amounted to J$58.4 billion compared to the restated J$56.0 billion last year. Stockholders’ equity as at March 2023 totalled J$42.3 billion, 5.7 per cent higher than the restated March 2022 balance of J$40.0 billion.
This equates to a March 2023 book value per stock unit of J$39.83 (restated March 2022: J$37.73). With the amalgamation of PanJam and Jamaica Producers successfully completed the management is looking forward to blending the strengths, experiences, and passion of both entities to create unparalleled value and impact.