138 Student Living projects 20 per cent revenue growth

138 Student Living Limited, which achieved J$1.05 billion in revenues in the year ended September 2019, is projecting a further 20 per cent growth in the new financial year.

138 Student Living is projecting increased revenue for its rental properties.

Key drivers, management says in the annual report which has just been released, will be keeping occupancy rates at over 90 per cent, and also an increase in short-term rentals.

The real estate company, which operates around 1,460 rooms over four halls at the University of the West Indies, has also secured a variation in the rate of return for Irvine Hall which is expected to positively impact results.

Long term revenue for 138 SL grew by 35 per cent in the last financial year.

During the year ended in September 2019, long term revenue grew 35 per cent.

Costs also climbed, but the company said it has implemented a project to reduce the cost of utilities, the results of which will be seen in 2020.

The company also pursued a redundancy exercise last year, and added positions which were previously outsourced.

138 Student Living said its receivables were down 26 pr cent over 2018.

Directors noted in the annual report that receivables are also down 26 per cent on 2018, an improvement.

 The company ended the year with a net profit of J$22.97 million, this compared to a loss of $16.5 million the year before.

Unaudited first quarter results for the three months ended December 31 2019 shows  profit before taxation of $183 million,  positively impacted by a variation claim for 2019, plus a first quarter 2020 claim relating to the construction of Irvine Hall.

The University of the West Indies, Mona

Adjusting for both variation claims, the group recorded first quarter profit amounting to J$33 million.

138 SL has made it clear that a major focus is on receivables and credit management.

 It was noted that an increase in receivables for the first quarter was due to the Irvine Hall variation claims.

 Average occupancy across all halls for the quarter was 99 per cent.

The company said it expected improved results to continue throughout the 2020 financial year.