Sagicor X Fund bullish on hotel segment growth, optimistic on market recovery

 

 


Sagicor Real Estate X Fund Limited reports that in the year ended that DoubleTree Orlando’s (DTO’s) net profit was up 26 per cent on the corresponding period last year to close the period at $484.46 million.

Increased guest spending resulted in an improvement of 3 per cent in Food and Beverage revenues over the same period last year. This was underpinned by an uptick in group bookings.

However, for the Fund net profit attributable to stockholders of $456.70 million for the year ended December 2024, down 30 per cent, on prior year.

X Fund’s Earnings per share however fell $0.09 from the comparative period to $0.20 as at December 31, 2024.

Hotel revenues of $7.33 billion were marginally below the previous year by one per cent as a result of tapering growth rates in tourism compared to the prior year.

In final quarter 2024 investment income was improved by its investment property earnings which came from the purchase of a block of units at The Strand in Cayman. The property is ideally located along the world-famous Seven Mile Beach Corridor and includes a variety of offerings spanning sports, restaurants, entertainment and other core services.

As at December 31, 2024, Total Revenues were $7.80 billion. X Fund’s earnings included a 26 per cent growth in Net Investment Income which improved from $428.93 million in 2023 to $539.03 million for 2024.

However, this was outpaced by Net Capital losses of $89.33 million (December 2023: $232.77 million gains) which included lower foreign exchange,

The increase in the asset portfolio is reflected in a corresponding reduction in indirect commercial real estate holdings, as Sigma units were sold and a block of units at The Strand in Cayman purchased.

The Group’s net cash used in operating activities was $753.34 million (2023: net cash generated by operating activities was $1.78 billion) resulting mainly from the purchase of investment property for $1.70 billion. Cash and cash equivalents, excluding restricted cash, stood at $4.51 billion (2023: $5.73 billion), reflecting the liquidity position of the Group.

Total assets increased by $1.30 billion, closing at$32.21 billion for the year ending December 31, 2024. This increase primarily resulted from growth in the investment portfolio and a higher property value.

For the period ending December 31, 2024, stockholders’ Equity was $22.07 billion. This represents an increase of $1.24 billion over December 31, 2023.

Net Profit Attributable to stockholders for the year ended was $0.46 billion. Total Assets stood at $32.21 billion.

In their report on the year ended, management said that the global economy showed signs of resilience in the face of continued and emerging challenges. “Central banks worldwide maintained a cautious approach to monetary policy. While inflation moderated in some areas, it continued to exceed targets in several major economies, prompting Central Banks to make very conservative rate cuts though keeping rates elevated.”

“However, signs of cooling inflation and the prospect of rate cuts by global central banks led many major indices to record substantial gains with bonds reversing previous losses. This positive market performance reflects growing investor optimism amid stabilising economic indicators.”

Caribbean Money Daily

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