Directors of Stanley Motta Limited say the company has benefited from customer’s commitment to rent contracts, with no defaults, during the last financial year.
As a result, the company reported a more-than-tripled net profit of JM$848.25 million for 2020, as against JM$281.29 million earned in the previous period.
“The pandemic has not impacted the values of the investment properties…”
In audited results for the year ended December 31, 2020, the group reported a 9.1 per cent rise in rental income from all the properties it owns at 58 Half Way Tree Road — either directly or through the wholly owned subsidiary Unity Capital.
Unity Capital owns Unit 5, known as the General Accident building, is owned by Unity Capital. The other four buildings consist of over 112,500 square feet of rentable commercial office space.
In total, the audited results show that the company generated revenue of JM$458.18 million, which produced operating profit of JM$309.95 million, up from $298.23 million in 2019.
At the same time, finance costs rose in 2020 to JM$84.4 million, moving from JM$65.94 million in the previous year.
The company’s overall investment property value also rose to JM$5.5 billion, up from JM$4.8 billion as at December 2019.
Investment properties were valued at current market value as at 31 December 2020 by NAI Jamaica Langford and Brown, using the income capitalisation approach, which uses as key inputs rental income from existing contracts, discount rate and a capitalisation rate, reflective of a rate of return, the company outlined.
“The pandemic has not impacted the values of the investment properties as the Group’s customers are contractually obliged to pay the agreed rent and there has been no default,” Stanley Motta’s directors commented.
However, the group’s managment has implemented measures to reduce operating costs and non-business critical capital expenditures as well as optimise working capital.