Sygnus Real Estate Finance (SRF) Limited Reports Q1 2022 Results

• Following a record financial year, where SRF unlocked J$1.81Bn in net profits from its real estate investment assets, the Company generated a net loss of J$99.95Mn for Q1 FY 2021-22 (three months ending November 2021) versus net profits of $25.24Mn in Q1 FY 2020-21. 
• Negative net investment income of J$87.35Mn (J$32.86Mn in 2021), a decline in fair value gains on financial instruments and net foreign exchange losses of J$23.46Mn (relative to gains of J$43.20Mn in Q1 FY 2021-2021) were the main drivers of the drop in earnings. 
• This was further exacerbated by a 52.4% increase in interest expenses to J$37.56Mn and a 159.9% rise in total operating expenses to J$87.35Mn in Q1 FY 2021-22. 
• SRF remains focused on executing its strategy of unlocking value in real estate assets, using flexible capital to increase shareholder value. The company recently announced that it had secured financing for and had begun construction of the J$3.70Bn 9 storey One Belmont commercial tower on Belmont Road. It also increased its investments to income earning real estate investment notes (“REINs”) to J$1.58Bn, from J$941.76Mn, purchased an investment property at 26 Seaview Avenue, Kingston 10 and advanced the process to unlock value for its strategic beachfront investment property in Mammee Bay, St Ann. These investments should support an improvement in the company’s bottom-line over time.

(Sources: Company Financials & NCBCM Research)