Real Estate Stocks Reporting Mixed March 2026 Earnings

  • The March quarter earnings season is still underway, and today the spotlight is on real estate stocks, which have produced mixed earnings thus far.
  • Relative to the March 2025 quarter, 138 Student Living (138SL) achieved a 56.8% surge in quarterly earnings to $120.74Mn, owing to higher revenues and lower expenses. Buoyed by improved rental rates and maintenance of a 98% average student occupancy rate, total revenues increased by 6.8% to $410.01Mn. Administrative expenses also decreased by 1.6% to $218.18Mn amid enhanced operational discipline, effective cost management, and general efficiency measures across its student housing properties. Consequently, its operating margins improved from 42.2% to 46.8%. A 9.5% decline in finance costs to $67.26Mn and a 64.8% decline in taxation to $3.83Mn also contributed to the stronger profits. Notwithstanding strong earnings, a bulk of current assets is still tied up in a growing $711.80Mn receivables balance, as it remains in talks with The University of the West Indies to resolve its variation claim1. Talks are at an advanced stage, according to management. 138SL closed at $3.08 on May 20th, down 2.61% YTD and trades at a P/E of 5.13x below the Main Market Real Estate Average of 6.5x.
  • Meanwhile, Sagicor Real Estate X Fund (XFUND) Limited recorded a 2.7% decline in earnings to $391.47Mn, reflecting lower revenues of $2.37Bn (-3.0%), despite notable growth within the group's core hospitality segments. Segment revenues from direct hotel and commercial operations improved by 2.3% to reach $2.30Bn. However, this was countered by a $28.98Mn capital loss, which is a $96.74Mn reversal from March 2025. Total operating expenses were tightly controlled during the quarter (down 4.9% to $1.80Bn), demonstrating improved cost efficiency across the board. This enhanced cost management, alongside resilient core performance, allowed the group to mitigate the falloff in its earnings under challenging operating conditions, including high interest rates, depressed asset valuations and Hurricane Melissa’s fallout. XFUND closed trading at $9.90 yesterday and is up 23.8% YTD and trades at a P/E of 22.5x, far exceeding the Main Market Real Estate Average.
  • Lastly, as we’ve previously reported on May 15th, Kingston Properties Limited (KPREIT) reported a decline 34.2% in earnings to US$658,957, largely due to the absence of fair value and property disposal gains. This was despite rental income rose 31.7% to US$1.82Mn, driven by portfolio expansion, particularly in the UK (+165%), and stable contributions from Jamaica and the Cayman Islands. Management fees also increased by 26.7%. KPREIT closed at $10.62, is up 13.0% YTD and trades at a P/E of 15.45x.
  • Stanley Motta (SML) and Eppley CPFV have yet to release their March Earnings.

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1According to the company website, the claim refers to compensation demand by 138SL against the campus administration arising from differences in the original 2015 accommodation concession agreement between the parties and the final, “as-built” configuration of Irvine Hall, which changed from intended double rooms to largely single rooms. The claim, which was initiated around 2019-2020, has been subject to long-term negotiations between the two parties.

(Sources: Company Filings via JSE & NCBCM Research)