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Improved occupancy drives income and profit for PanJam

PanJam Investments will move forward with its property development plans in Downtown Kingston and Montego Bay.

PanJam Investment Limited’s headquarters on Knustford Boulevard in New Kingston, Jamaica. (Photo: PanJam)

Chairman and CEO, Stephen Facey and Deputy CEO Paul Hanworth said the company remains committed to making additional investments in attractive, well-positioned entities, in a statement contained in its just-released annual report.

PanJam began development of the ROK Hotel, Tapestry Collection by Hilton, located at the corner of King Street and Ocean Boulevard in Downtown Kingston last year.

Simultaneously, work began on the ROK Residences, comprising of 36 apartments and six penthouses on the top four floors. The company is now targeting an opening date in 2021.

“We remain, however, fully committed to long-term value creation and continue to seek out local and regional opportunities.”

– Chairman and CEO, Stephen Facey and Deputy CEO Paul Hanworth

Meanwhile, design work continues on five acres of land adjacent to the cruise ship pier in Montego Bay where PanJam hopes to construct a mixed-use property, including residences, a hotel and retail operations.

The company was last year contracted to do an upgrade of the Scotia Centre in downtown Kingston. It also has investments in the Aloft Miami Airport Hotel and the Courtyard by Marriott Kingston which Hanworth and Facey say continued to perform well in 2019, their third and fourth full years of operations, respectively.

PanJam is also invested in Canadian real estate through limited partnerships which realised gains of $153 million in 2019.
Overall, PanJam’s property segment saw a 10 per cent increase in rental income and a 1,510 per cent increase in segment operating profit, driven by contractual rate adjustments and improved occupancy, which now stands at 9,610 per cent, up from 9,110 per cent in 2018.

Associated company Sagicor Group reported net profit attributable to stockholders of $15.7 billion in 2019.

The company heads note that the majority of its securities portfolio is now comprised of Jamaican equities with operating income more than doubling in 2019.

Hanworth and Facey commented, “This is not likely to be repeated in 2020, as the country deals with the fallout from the global pandemic. We remain, however, fully committed to long-term value creation and continue to seek out local and regional opportunities.”

Results from associated companies were again dominated by Sagicor Group Jamaica Limited (Sagicor), which reported net profit attributable to stockholders of $15.7 billion in 2019. New Castle Company Limited, owners of the Walkerswood and Busha Browne brands, almost doubled profitability as it leveraged its enhanced US distribution.

Chukka Caribbean Adventures Limited continued its expansion path with a small acquisition in the Dominican Republic and plans to set up operations in two major English-speaking countries in the region.

In 2019, PanJam reported record earnings for the eighth consecutive year, with net profit attributable to owners of $8.3 billion, up 56 per cent from $5.3 billion in the prior year.

Earnings per share increased to $7.85, from which dividends of $1.31 per share were declared, up from 2018’s dividend of $1.05.

The company heads stated that while global capital markets are reflecting the adverse impact of the COVID-19 outbreak, “we believe that the medium-term trajectory will continue to be positive.”