Jamaica
News - Real Estate - Services
Source: The Jamaica Observer, Al Edwards, March 16, 2007
Property
management pays dividends for Pan Jam
PanJamaican Investment Trust
financial results for the year ended December 31, 2006 were
somewhat mixed but were defined by a one-time gain of J$1.62
billion on the sale of its banking and insurance operations.
Property management services
pays off
Pan Jam over the last few years has
transitioned from a conglomerate with a strong financial services
arm into more of a property management services provider. This is
clearly seen from the J$801 million garnered from property
services, a 17 per cent increase on the prior year's J$684
million.
Revenue from continuing
operations increased by 11.6 per cent to J$1.142 billion with
growth being driven by its property services arm. Pan Jam's
investment holdings brought in J$268.4 million, a marginal
increase on the J$260 million posted for 2005. Net profit fell to
J$1.135 billion, a far cry from the J$2.796 posted for 2005.
Total assets came to J$10.5
billion, up 12.4 per cent on the J$9.3 billion posted for year-end
2005. Stockholders' equity increased by 14.6 per cent to J$7
billion (2005 - $6.1 billion), which equates to a book value per
share of J$40.81 as at December 2006.
As a result of discontinuing
lines of business, the Maurice and Stephen Facey-led group saw a
significant fall in its cash and cash equivalents at end of year
from J$855.5 million in 2005 to J$567.2 million for the period
under review.
Rise in operating expenses
Pan Jam's operating expenses
increased to J$520.5 million for the year ended 31 December 2006,
an 11.8 per cent increase on the J$465.4 million registered for
the prior year. Pan Jam's senior principals attribute this to the
higher direct costs of property management.
"Our property segment enjoyed
occupancy levels exceeding 93 per cent and its contribution to
group operating profit increased by 14.6 per cent to J$321
million. Our investment management segment contributed J$407
million to group operating profit in 2006, compared to J$401
million in 2005, a creditable performance given the difficult
investment climate in 2006," read Maurice Facey's Chairman's
Statement for the period under review.
Pan Jam has merged its positions
held in financial services into Life of Jamaica's (LoJ) operations
and taken a 25 per cent equity stake in the Sagicor subsidiary.
LoJ, its associated company, reported net profits attributable to
stockholders of J$2.572 billion, an increase of 5 per cent on the
J$2.449 billion posted for the previous year.
Pan Jam's investment in Hardware
& Lumber continues to prove challenging. For 2006 profits
declined 46 per cent to J$38 million, and sales increased
marginally to J$5.6 billion.
When one thinks of most of the
major citadels of corporate Jamaica, Pan Jam probably owns them.
It owns The FirstCaribbean building on Knutsford Boulevard. It
also owns the Dyoll Building; Pan Caribbean and Jamaica Tourist
Board and NHT buildings all located on Knutsford Boulevard. Added
to that are two plazas in Manor Park, the Scotia Centre in
downtown Kingston. It also manages the building that houses Air
Jamaica 's downtown headquarters.
Pan Jam owns 300,000 square feet of
property and manages another 350,000 square feet.
Speaking with Caribbean Business
Report yesterday, Pan Jam's President and CEO, Stephen Facey said:
"If you look at the segment reporting on our financial
results we did rather well with capital appreciation, rental
income and management fees. Rents are rising on the properties and
we have made a concerted effort to properly maintain our buildings
and keep them in top condition."
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