Real Estate

Nicholas Scott, chairman of Eppley Caribbean Property Fund

Eppley announces buy-back of ‘undervalued’ shares

Nicholas Scott, chairman of Eppley Caribbean Property Fund

Eppley Caribbean Property Fund (CPFV) has announced a buy-back of its shares which it says are undervalued.

Chairman of Eppley, Nicholas Scott

The Board of the Caribbean real estate management company said it will repurchase shares to ‘unlock significant value for shareholders’.

In a statement to the Jamaica Stock Exchange, Eppley said “The Directors believe that the Company’s shares are currently trading at a significant discount to the Company’ s fair value for which its Net Asset Value per Share is a proxy. The Directors, therefore, believe that repurchasing shares would unlock significant value for the Company’s

The shares will be purchased overtime with its own cash “at a price below of equal to the Company’s Net Asset Value per Share” or J$48.64 per share as of September 30, 2019.

The Jamaica Stock Exchange

Earlier that day, the Company said it would buy a maximum of 300,000 shares. “In accordance with the rules of the Jamaica Stock Exchange regarding share repurchases, any purchases will take place following the expiration of 21 days from this notification and we will immediately provide you with the details of any purchases.”

Following what its Chairman, Nicholas Scott, referred to as “enhanced operational efficiency” in 2019, Eppley reported profits of BD$4.05 million after loss of BD$739,328 in 2018.

The Hastings Business Centre in Barbados. (Photo: Eppley Caribbean Property Fund)

Its turnaround was also attributable to the acquisition of a number of commercial real estate properties in Jamaica and Barbados, which helped to diversify the CPFV’s portfolio, Scott said. The acquisitions include two industrial assets and a retail building in Jamaica, along with an industrial property in Barbados.

In November 2019, it announced the acquisition of the Hastings Business Centre in Barbados.

Eppley is the largest listed real estate mutual fund in the Caribbean and trades on the Jamaica,  Barbados and Trinidad and Tobago stock exchanges today.