Jump in administrative expenses which moved to $55.4 million

Real estate company Stanley Motta saw a marginal improvement in revenue in the March quarter, due to the depreciation in the Jamaican dollar.

Revenue for the period quarter increased by 6.8 per cent, moving from $112 million in March 2020 to $119.6 million. This was due mainly to the depreciation of the Jamaican dollar, which moved from an average of J$136: US$1 as at March 2020 to J$147.86: US$1 at March 31, 2021.

Administrative expenses for the year-to-date period shot up by 53.7 per cent over the prior year, moving from $36.1 million to J$55.4 million for the quarter under review. This year-over-year increase is mainly due to a significant foreign exchange loss of $9.4 million arising from the revaluation of the company’s loan with the Development Bank of Jamaica.

There were also repair and maintenance related costs amounting to $8.5 million. Net operating income declined year over year, moving from $76 million for March 2020 to $66.1 million for the period ended March 31, 2021, representing a 12.9 per cent decrease.

Funds from Operations of $56.6 million was generated year-to-date as at March 2021 compared to that of $65.5 million generated for March 2020, registering a 13.5 per cent decrease.

Net profit margin position

Net profit margin for the quarter stands at 45 per cent. Without the foreign exchange loss, the net profit margin for the same quarter would have been at 53 per cent. Stanley Motta continues to hold firm in its commitment to maintaining strong operational efficiency, while collecting rent in a timely manner.

Notably, the company has substantially reduced its receivables as any rent deferment offered because of the COVID-19 pandemic has now been paid back in full, which has in turn positively impacted its holding of cash. Revenue for the rest of 2021 is expected to remain stable, excluding significant fluctuations in the foreign exchange and property revaluations.

The company reports that the collection of rent in US dollars is expected to continue on a timely basis.

Slight drop in pre-tax profit

Finance costs of $10.81 million were recorded for the period under review compared with $10.36 million for the March quarter in 2020. As such, profit before tax decreased to $55.33 million for the quarter ended March 2021 relative to $65.60 million documented in the same period last year.

Taxation decreased 57 per cent to close at $1.03 million (2020: $2.39 million) for the three months ended March 2021. Consequently, net profit for the quarter totalled $54.30 million (2020: $63.21 million).

Total comprehensive income of $109.58 million was reported for the period versus $82.15 million recorded in the prior corresponding period.