Profit dips at Eppley Limited but the company promises medium term gains from 2024 investments

 

Eppley Limited has posted audited results which for the year ended December 31, 2024, net profit of $175.78 million at year end 2024. This compared to compared to $239.43 million at year end 2023. Results came principally from gross investment income of $496.28 million in 2024 compared to $443.91 million in 2023

Cash and cash equivalents at year end was $ 274.20 million compared to 1.04 billion at year end 2023.

Eppley Limited, listed on the Main Market of the Jamaica Stock Exchange, is principally engaged in investing in credit products including insurance premium, loan and lease financing and providing asset management services.

In the financial year ended Eppley, the Group acquired a 19 per cent interest in the Value Fund of Eppley Caribbean Property Fund Limited SCC, through two of its subsidiaries.

The Group now holds a 20 per cent interest in the Value Fund, when accumulated with the one per cent interest previously held. This direct interest combined with the Group’s previously held voting rights resulted in the consolidation of the Fund .

The investment objective of the Value Fund is to produce annual income and long–term capital gains from a diversified portfolio of income producing properties in the Caribbean. It is expected that the Value Fund will pay out a minimum of 75 per cent of its available distributable profits annually.

During the previous year, the Group through one of its subsidiaries, also acquired a 47 per cent interest in the Development Fund of Eppley Caribbean Property Fund Limited SCC. This direct interest combined with the Group’s previously held voting rights resulted in the consolidation of the Fund.

Management outlined, “The investment objective of the Development Fund is to realise value in the medium term on its portfolio of development properties in the Caribbean and return capital to shareholders.” Notably, it is not expected that the Development Fund will pay a regular dividend.

Eppley has over a dozen joint ventures including 24 per cent interest in a joint venture partnership called The Sunset Joint Venture. The partnership was formed to facilitate the purchase of the Sunset Mall, a commercial property at Sunset Crest, St. James.

The Value Fund also has a 36 per cent interest in a joint venture partnership called The CS&C Joint Venture. The partnership was formed to facilitate the purchase of land and buildings previously owned by Cave Shepherd and Co. Ltd. and Carter Holdings Limited. The partnership has 7.6 acres of undeveloped land at Lower Estate and the Cave Shepherd building at 10–14 Broad Street.

Further, the Value Fund has a 30 per cent beneficial interest in The Emerald City Trust. The Trust was formed to facilitate the purchase of the Emerald City Mall, a commercial property at Six Cross Roads, St. Philip, Barbados.

Additionally, the Value Fund owns a 40 per cent interest in the company called Mall Plaza. The company owns commercial property located at 20 Constant Spring Road, Kingston 10, St. Andrew, Jamaica.

The Value Fund has a 50 per cent interest in the company called ECPF Molynes Property Holdings Limited and the company holds a 100 per cent interest in a company called Chalmers Commercial Limited, which owns commercial property at Phase 1, Chalmers Commercial Centre, Chalmers Avenue, part of Molynes Gardens, Kingston 10.

The Value Fund also has a 50 per cent interest in the company called Caparo Industrial Properties Limited. The company holds property in Chaguanas Trinidad and Tobago.

Additionally, the Value Fund has a 50 per cent interest in the company called ECPF Property Holdings (Jamaica) Limited. The company holds a portfolio of twenty–two buildings across Jamaica which were acquired via a sale and lease back transaction during the prior financial year (2023).


Photograph: Raymond Donaldson, CEO, Eppley Limited.

Caribbean Money Daily.