Jason Morris, co-founder, EVP and chief investment officer at Sygnus Credit Investments. 

Sygnus Credit Investments Limited (SCI) has executed another block of shares buyback late last month amounting to 2.5 million ordinary shares.

These purchases took place between June 26 and June 28, forming part of the company’s share buy-back programme. Earlier in June, SCI bought back from some of its shareholders close to three million ordinary shares in its share buy-back programme.

The shares amounting to US$136,525 or J$7,772,274 were purchased between June 13 and June 19. Altogether, the value of the shares buy-back was approximately US$635,000.

The purpose of the shares buy-back is to enhance shareholder value with SCI’s management agreeing to purchase up to US$9 million of JMD and USD ordinary shares over three years with everything thus far going to plan.

The source of funding for these purchases is the company’s cash flows and the method of effecting the purchase is buying the shares on the open market via SCI’s stock brokers. A shares buyback is a repurchase of outstanding stock shares by a company to reduce the number of shares on the market and increase the value of the remaining shares.

Buybacks benefit all shareholders to the extent that when stock is repurchased, shareholders get market value plus a premium from the company. If the stock price rises before the repurchase, those selling their shares in the open market will see a tangible benefit. 

Sygnus executes another block of shares buy-back in late June

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With his wife, two young daughters, and a baby boy, Steven cherishes Father’s Day as a special occasion to reflect onthe profound joys and responsibilities that come with fatherhood.

Steven Davis, AVP Investment Banking at Sygnus, is not only a powerhouse in the world of alternative investments but also a dedicated father and husband.

This Father’s Day, the Sygnus team celebrate Steven’s ability to seamlessly juggle the demanding responsibilities of his career with the joys and challenges of fatherhood.

Davis family life is a vibrant blend of love, laughter, and learning. With his wife, two young daughters, and a baby boy, Steven cherishes Father’s Day as a special occasion to reflect on the profound joys and responsibilities that come with fatherhood.

“Father’s Day is a moment to appreciate the love and support of my family, and to celebrate the unique bond I share with my children,” he shared. Despite his busy career, Davis values every moment spent with his family, reminding him to treasure the time they have together.

Balancing a high-stakes role at Sygnus with family life is no easy feat. Steven emphasises the importance of prioritisation and efficient time management.

“I make efficient use of my time at work to ensure productivity, often working late nights. However, I dedicate my weekends to family activities to stay connected with my loved ones,” he explained. This strategy allows him to be present for important family moments, despite the demands of his career.

Balancing fatherhood and finance with Steven Davis | Loop Jamaica (loopnews.com)

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Sygnus’ Berisford Grey (second left), President and CEO, and Ryan Landey (far left), AVP Investment Management, present cheque totalling $5 Million to Project STAR’s Saffrey Brown, Project Director. 

Jamaica-based alternative investments firm, Sygnus Group, has entered into a partnership with Project STAR.

The collaboration sees Sygnus contributing a total of J$5 million to Project STAR and underscores the firm’s ongoing commitment to fostering positive change and supporting initiatives that contribute to the betterment of communities.

Sygnus’ donation, with equal contributions of J$2.5 million from both Sygnus Capital and Sygnus Credit Investments, reflects Sygnus’ core principles, encapsulated in their ‘3Is’ approach (Innovation. Integrity. Independence). It represents the company’s firm belief in the power of strategic investment, innovative solutions, and meaningful impact to drive positive change in society.

Berisford Grey, President and CEO of Sygnus signs cheque being donated to Project STAR as Saffrey Brown, Project Director, Project STAR, and Ryan Landey, AVP Investment Management, Sygnus, look on.

Reflecting on the partnership, Berisford Grey, CEO and president of Sygnus, said, “At Sygnus, we recognise the importance of initiatives like Project STAR in driving social and economic progress”.

“Our decision to partner with Project STAR reflects our deep-rooted commitment to supporting initiatives that empower communities and create lasting change. We believe that by working together, we can make a meaningful difference in the lives of Jamaicans and contribute to a brighter future for all,” Grey explained.

Project STAR aims to address critical social and economic challenges facing Jamaica through targeted interventions and sustainable development projects.

The initiative focuses on areas such as education, healthcare, entrepreneurship, and infrastructure development, with a vision to create inclusive and thriving communities across the island.

This partnership with Sygnus will enable Project STAR to expand its reach and impact, supporting initiatives such as education enhancement programmes, healthcare initiatives, entrepreneurship support and community development projects. 

Project STAR gets J$5 million endorsement from Sygnus Group – Our Today

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On the heels of its recent contribution to the renovation of the Sunshine Girls’ Netball House, Sygnus Real Estate Finance (SRF) has further demonstrated its commitment to community support and women’s sports by partnering with Berger Paints Jamaica to further restore the Sunshine Chalet. This joint effort focused on rejuvenating the interior spaces, with the dining and living areas receiving fresh coats of paint, enhancing the comfort and ambiance.

Teamwork is essential as members from Sygnus, Berger Paints Jamaica, Sunshine Girls, and Netball Jamaica unite to further restore the Sunshine Chalet.

The project saw active participation from Sygnus team members, including Peta-Gaye Simpson, senior real estate development manager; Anadeen Nembhard, head of people, culture, and talent management; and Renee Rickards, senior marketing manager. The Sygnus team worked alongside members of the Berger Paints Jamaica team including Dwaine Williams, general manager and Ramonm Lawrence, Trade Marketing Manager, members of the Sunshine Girls, and the Netball Jamaica President, Tricia Robinson. Their combined efforts have not only revitalised the Sunshine Chalet, but also underscores Sygnus’ dedication to fostering positive community initiatives and creating a more comfortable environment for the Sunshine Girls.

The Sunshine Chalet, affectionately known as the Netball House, was gifted to the team by former Prime Minister Bruce Golding, in 2010. The five bedroom house, used all year round, sits on 1.5 acres of land, and is home to national squad players of varying ages, including those under 14, 16, 21, and the Sunshine Girls. While the home has undergone previous refurbishments, recent times have highlighted the need for further support to maintain its functionality and comfort. In recognition of this need, the Friends of Netball committee was formed with the dedication to refurbish the House. Led by Marva Bernard, members of the committee also include past presidents, Vilma McDonald, Sharon Donaldson and Molly Rhone.

Abigail Monroe, people, culture and talent management associate at Sygnus, happily cleans the interior of the Sunshine Chalet.

                      All hands on deck! Tamara Thomas, trade marketing officer, Berger Paints Jamaica, and Ryan Landey, AVP Investment Management, Sygnus, join forces to complete the painting.

Attention was surely in the details for Peta-Gaye Simpson, senior real estate development manager, Sygnus.

Sygnus, Berger Paints team up to restore Sunshine Chalet | News | Jamaica Gleaner (jamaica-gleaner.com)

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From left: Ike Johnson (Sygnus), Joshua Henríquez (FranPan), MaryCate Muschett (NEP), Ryan Reid (FirstRock), Khary Robinson (NEP)

Norbrook Equity Partners Limited and other co-investors have successfully acquired the Panamanian KFC and Dairy Queen franchises from Franquicias Panameñas, SA (FranPan).

The deal, which closed recently, has seen Platinum Brands, SA, a Panamanian special purpose vehicle, acquire 44 KFC and 35 Dairy Queen restaurants in the Central American country. The move also means that Norbrook has become the exclusive franchisee for both brands in Panama which have more than 1,700 employees. Both franchises were owned by FranPan, which is a 60-year-old family company in the quick service restaurant (QSR) business with over 200 restaurants including brands such as Taco Bell, Pizza Hut, Quiznos, Pizza Pizza, and Chili’s.

“We are delighted to have found in Norbrook and its management team people who share our values and understand the potential of KFC and Dairy Queen in Panama. This transition allows us to focus on our legacy while entrusting the future of these beloved brands to capable hands,” said Liza Henriquez, spokesperson for the family-run business FranPan.

“In this business, the idea is to grow in three dimensions: to grow service, to grow quality and growth of stores. So, we’re looking to expand and grow our footprint in Panama. We’re the number two platform in Panama behind McDonalds, but they have almost twice as many stores as us. So, that shows you that there are as many sub-markets within Panama that we aren’t covering today and there’s really growth opportunity for the KFC brand,” said Robinson in a call with the Jamaica Observer yesterday.

Mailpac Group Limited, Norbrook’s 72.60 per cent subsidiary, acquired the assets and operations of MyCart Express on April 1, a move which is set to move Mailpac Group’s revenue by at least 50 per cent. Mailpac is set to have an extraordinary general meeting (EGM) later this year to approve the issuance of new Mailpac shares to the co-founders and approve the rebranding of the company to MyPac Group.
MyCart co-founder Kamar Palmer and NCBJ Executive Vice-President Sheree Martin joined the board of Mailpac Group on June 1. Palmer joins the board following the acquisition while Martin is the latest independent director to join Mailpac’s board to satisfy Jamaica Stock Exchange (JSE) audit committee requirements.

This is Sygnus Deneb’s first private equity investment following a US$20-million private equity fundraise in June 2023. Sygnus Deneb has stakes in Aruba Wine and Dine, Chukka Caribbean Holdings Limited, CS&T Group Limited, and Caribbean Maritime Investments. Sygnus Deneb was founded in November 2018 and completed its first acquisition in February 2020.

“FirstRock Private Equity is proud to be part of this strategic investment in the Panamanian market. We believe in the potential of KFC and Dairy Queen to thrive under the leadership of the Norbrook team, and we look forward to contributing to the success of these iconic brands in the region,” said Ryan Reid, FirstRock PE co-founder and executive chairman.

This represents FirstRock PE’s fourth private equity asset following Dolla Financial Services Limited, My Ocean Limited and Optimum Distributors Limited.

The acquisition was supported with bank financing from JMMB Bank (Jamaica) Limited, a financing partner for Norbrook, and BAC International Corporation providing Platinum with acquisition financing as well as all the treasury management, transaction services, and cash management services required to support the company’s restaurant portfolio. Morgan & Morgan was Norbrook’s Panamanian legal counsel.

Norbrook’s business operates in Jamaica, West Africa and the United States of America. Norbrook had announced earlier this year that it intends to bring two of its subsidiaries to the public equity markets during 2024. Norbrook Equity Partners, a St Lucian IBC, has had two changes to its authorized share capital and change to its capital structure since January 2020.

“Our growth strategy has always been to invest in and acquire good and well-positioned businesses and continue to expand that and this is just another step in that journey. All of the other things that we have continue to grow, all of our subsidiaries are continuing to grow and we’re looking at opportunities globally just to really expand our ability to take capital, good people and good processes and grow businesses or projects to generate good returns,” Robinson closed as he noted that 2024 will be interesting for them.

Norbrook Equity acquires Panamanian KFC & Dairy Queen franchises – Jamaica Observer

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As part of its ongoing commitment to education and in celebration of Child Month, Sygnus Credit Investments, a fund under the Sygnus Group, supported the Kingston leg of Amplify Studios’ Reading N’ Reasoning initiative. 

The Sygnus team demonstrated unwavering support for this noble cause, engaging with over 50 students at the Devon House Edward Seaga Suite to inspire a love for reading and foster critical thinking skills.

The initiative included students from the Holy Family Primary School, St. Martin De Porres Primary School, Jessie Ripoll Primary School, St. George’s Girls Primary School and Hope Valley Experimental School.

Members of the Sygnus team showed out in their numbers to interact and engage with the students. Damani Reid, manager of investment management at Sygnus, read Jamaica Tag-Along by Juanita Havil with the students. 

Damani Reid, manager of investment management at Sygnus, inspiring young minds at the Reading N’ Reasoning event as he delves into ‘Jamaica Tag-Along’ by Juanita Havill.  

The project saw active participation from Sygnus team members, including Peta-Gaye Simpson, senior real estate development manager; Anadeen Nembhard, head of people, culture, and talent management; and Renee Rickards, senior marketing manager. The Sygnus team worked alongside members of the Berger Paints Jamaica team including Dwaine Williams, general manager and Ramonm Lawrence, Trade Marketing Manager, members of the Sunshine Girls, and the Netball Jamaica President, Tricia Robinson. Their combined efforts have not only revitalized the Sunshine Chalet, but also underscores Sygnus’ dedication to fostering positive community initiatives and creating a more comfortable environment for the Sunshine Girls.

The Sunshine Chalet, affectionately known as the Netball House, was gifted to the team by former Prime Minister Bruce Golding, in 2010. The five bedroom house, used all year round, sits on 1.5 acres of land, and is home to national squad players of varying ages, including those under 14, 16, 21, and the Sunshine Girls. While the home has undergone previous refurbishments, recent times have highlighted the need for further support to maintain its functionality and comfort. In recognition of this need, the Friends of Netball committee was formed with the dedication to refurbish the House. Led by Marva Bernard, members of the committee also include past presidents, Vilma McDonald, Sharon Donaldson and Molly Rhone.

Reflecting on his experience Reid shared, “My experience at the Reading N’ Reasoning initiative was incredibly enriching and eye-opening. It is my second time being part of this initiative, so it was amazing to witness firsthand the programme’s reach since my participation last year, and I was particularly inspired by the children’s eagerness and enthusiasm to learn and absorb what the programme had to offer. The kids also asked some very insightful questions and I am hopeful that our efforts sparked a deeper interest in reading and critical thinking. Initiatives of this nature are essential for nation-building, and through this, we are able to support our future leaders and young bright minds to foster a love for lifelong learning. We are thrilled to have the opportunity and privilege to carry out our mission at the early childhood level, where growth and development are at its most important stage.”

Launched in November 2022 and spearheaded by Joel Nomdarkham, chief impact creator at Amplify Studios, the Reading N’ Reasoning Initiative aims to lay a foundation for a brighter future for the community and the nation.

While the programme typically focuses on the education and development of boys, for Child Month, Nomdarkham took an inclusive approach ensuring both boys and girls were involved and would benefit from the different activities that we had lined up.

“For Child Month we wanted to spotlight both boys and girls. There was an overwhelming amount of positive feedback and feel-good sentiments from the students. Many of the students who participated shared how happy they were to meet new friends, how they enjoyed the day, and how they learnt something interesting about the stories that were told,” expressed Nomdarkham.  

Continuing Nomdarkham thanked Sygnus for their partnership. 

“Sygnus came on board as my partner for the second year and it was truly a timely and successful partnership. I think education itself is one of the tenets for Sygnus. And what I love about Sygnus is that the entire team came out and supported. It added a lot of partner value to the room and the children were excited about that as well. For our Kingston session, Sygnus’ support enabled us to have some more treats for the students including lemonade and cookies. The financial support from Sygnus also ensured the students were able to do the mansion tour and be treated to ice cream which made the experience even more exciting and meaningful.” 

The Reading N’ Reasoning initiative, which has reached a total of 250 students and donated 1200 books through its partners for Child Month, continues to foster a culture of literacy and critical thinking among young students, equipping them with the tools they need for academic success and personal growth.

Stephen Wright, assistant vice-president of private equity and mergers and acquisitions at Sygnus, lends a helping hand to Otia Blagrove from Holy Family Experimental School, demonstrating the use of the reading light.

Ryan Landey, assistant vice-president of investment management at Sygnus, emphasized the importance of these initiatives, stating, “Partnering with Amplify Studios for a second year for its Reading N’ Reasoning initiative underscores our commitment to education and community development. These initiatives are crucial for nurturing young minds and equipping them with the tools for future success. At Sygnus, we believe in investing in the next generation, and we are proud to support programmes that foster literacy and critical thinking skills.”

Sygnus partners with Amplify Studios for Kingston-leg of ‘Reading N Reasoning’ initiative – Our Today

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Jason Morris – Co-Founder, Executive Vice President and Chief Investment Officer of Sygnus Group

Jason Morris, executive VP and chief investment officer at Sygnus Credit Investments (SCI), says that the company’s nine-month results justify its increased deployment of capital in its Puerto Rican associate Acrecent Financial Corporation (AFC).

For the third quarter ending March 31, SCI along with AFC deployed the largest-ever disbursement of capital of US$57.5 million into its private credit business. By itself, SCI disbursed US$34.75 million, most of which went to Jamaican businesses.

For the nine months, SCI deployed US$114.5 million.

According to Morris, who provided an overview of the company’s third-quarter and nine months’ performance in an earnings call on Thursday (May 16), AFC created transactions generated transactions amounting to over US$20 million in the quarter and US$67.8 million over nine months.

A snapshot provided by Sygnus Credit Investments Executive Vice President and Chief Investment Officer Jason Morris during the earnings call on Thursday, May 16. 2024.

“I think since SCI would have done the acquisition of the Puerto Rico business two years ago, the deployment is about US$175 million, right, which is simply incredible. And that platform, of course – the business is in a US$100 million economy, so you should expect fast rate of growth,” he said.

So far, capital deployment in the Spanish-speaking jurisdiction is up by 50 per cent, while in the English-speaking it has grown by 32 per cent.

“So you can see where, I think, several quarters ago we gave a kind of forward-looking expectation that that we expect Puerto Rico sooner or later to outgrow the pace of SCI on a consistent basis, or in a steady state, and be larger than SCI and we’re starting to see that kind of expectation coming to the fore,” Morris outlined.

The SCI co-founder and CIO noted, too, that the performance of the Puerto Rico business in relation to its Jamaican parent can be credited to the size of the US territory’s economy. With a population of over 3.2 million, the Commonwealth of Puerto Rico has a per capita gross domestic product exceeds US$30,000.

AFC has generated more than US$1 million in profits in each quarter of financial year 2023/24, Morris pointed out, added that as that business continues growth, SCI shareholders can anticipate greater returns on their investments and by extension better dividend payouts.

Acrecent Financial Corporation’s Guaynabo offices in Puerto Rico. (Photo: acrecent.com)

During Q3 Mar 2024, an interim dividend of US$1.55 million or US$0.00263 per share was declared and subsequently paid on April 5, 2024

Looking ahead, the CIO said he expects the performance of AFC will contribute to SCI improving its return on equity (ROE) to above the 10 per cent mark. For the quarter, the company had 11.7 per cent in ROE, whereas for the nine months, ROE was 8.2 per cent.

“So our objective, as we would have outlined in our strategic plan at the last AGM (annual general meeting), was to have our ROE above 10 per cent on a consistent basis. So we’re getting closer there and, of course, Puerto Rico is gonna be a big, big part of maintaining that thrust to generate higher levels of ROE, which will translate automatically into very good earnings per share metrics,” Morris stated.

For Q3, SCI’s core revenues, or total investment income, jumped by 96 per cent, or US$1.66 million, to a record US$3.39 million, due to higher interest earnings. For the same period in 2023, the company earned US$1.73 million.

Over the nine months, total investment income of US7.54 million was 20 per cent more than in the corresponding period in the previous financial year.

Profit before tax of US$2.1 million for Q3 represented an increase of 38.6 per cent relative to the same period in 2023. Meanwhile, the nine-month profit before tax was relatively flat at US$4.51 million.

Still, Morris pointed out that given the Q1 and Q2 losses the company sustained in the current financial year, “I’m classifying this as a recovery… but in relation to where we were last year, we are still down. So if you look at the nine months result you’re gonna see the effect of that.”

Total assets for the SCI grew by over 30 per cent to US$198.6 million with earnings per share for the quarter up to US$0.35, compared to US$0.24.

https://our.today/puerto-rican-asset-drives-record-q3-earnings-for-sygnus-credit-investment/

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shanel.lemmie@gleanerjm.com

Though her biggest role is being a present parent to her son Luca, Nichole Lobban spends her days as the assistant vice-president of wealth management and client strategy at Sygnus Capital Limited.

In 1999, Nichole Lobban won an award at her high school graduation for being the most well-rounded student. Since then, her whole life has been dedicated to achieving excellence through balance. Rising through the ranks as assistant vice-president of wealth management and client strategy at Sygnus Capital Limited, Lobban is dedicated to imparting lessons of balance to her now eight-year-old son and pride and joy, Luca.

While many people find their passions later in life, for the St Ann native she found fitness early.

“I got into physical activity and movement in high school. I knew how to swim well from a young age of five but where I am from the prep school that I went to down there didn’t have opportunities for a swim team and going to the stadium and participating in meets.”

Challenging herself to join the swim team when she arrived at Holy Childhood High School, she soon discovered tennis.

“The tennis court was right there but I didn’t know how to play tennis before. It was a part of the [physical education] curriculum and I just had a knack for it. I made the tennis team, so I took on both.”

Throwing herself into both her extracurriculars and her studies, by the time she graduated, Lobban’s life plan began to reveal itself.

“When I graduated, I received the award for the most all-rounded student. That was a big thing because that award taught me balance. I believe life is about [balance] in every aspect. Whatever comes your way, you have to balance, it can’t just be academics so that award I followed it throughout my life.”

She continued, “Sports to me, it teaches you discipline and gives you structure. I have an eight-year-old son and I make sure I’ve introduced him and exposed him to swimming, tennis, table tennis and football.”

Luca, who is just as passionate as Lobban about tennis, plays every Sunday with his mother at the Liguanea Club.

Beaming as she spoke, she said, “He’s perfect. I couldn’t be prouder.”

“I am a single mother but I have a perfect arrangement with his dad where we do [a] week on, week off. It works for all three of us. It helps me to balance my life as well. I believe he’s in a good place. He’s a confident child like me and his father. He’s a social butterfly sometimes, sometimes he’s super miserable but you know, he’s a kid. He’s the apple of my eye.”

While Lobban’s life, which includes working out with a trainer three days a week, playing tennis and running two days a week, periodic hikes and a laundry list of work commitments, is in its simplest form hectic, she believes she has found a perfect balance between her needs and Luca’s.

“I am doing a great job, as all mothers should feel. I do as best [as] I can for him. I encourage him, I make him feel confident in himself and regardless of where a child is, I believe that is the responsibility of a parent to push their kid and encourage them to be a better person.”

Not taking all the credit, she says much of this balance is because of her understanding work life.

“To be honest with you, that is attributed to work as well. You can work somewhere and they don’t understand family life challenges or they might not appreciate the unique challenges of their team members and I find that Sygnus pushes that. We are a family there, we are a small organisation and I find that all of the execs [and] the managers all understand their team and allow for that flexibility to each [person’s] unique circumstance.”

While supporting her company and her family, Lobban says there is simply no her without fitness.

“I love it. It makes me feel good about myself. It helps clear my mind and helps me to get away from the grind of work, reality, everything.”

https://jamaica-gleaner.com/article/lifestyle/20240512/nichole-lobban-finding-success-through-balance

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Jason Morris, Executive Vice President and Chief Investment Officer at Sygnus Group.

Sygnus Real Estate Finance (SRF) has announced the successful sale of two investment properties from its portfolio.

The properties, located at 56 and 58 Lady Musgrave Road, were sold at attractive valuations, reflecting the company’s strategic focus on maximizing returns for its shareholders, SRF said in a release.

The proceeds from the sale will support the company’s second investment life cycle.

“We are pleased that we were able to unlock value for shareholders from 56 and 58 Lady Musgrave Road investment properties and generate an attractive rate of return,” said Jason Morris, Executive Vice President and Chief Investment Officer at Sygnus Group.

SRF shareholders in March approved the special resolution to convert a $377.91-million performance fee owed to Sygnus Capital into SRF ordinary shares. The resolution led to the conversion of the fee into 20,707,342 ordinary shares at $18.25 per share.

Shareholders will receive warrants at a future date, granting them the option to buy new SRF shares at J$18.25/US$0.12. These warrants will be allocated at a ratio of one warrant for every 15 ordinary shares and will remain exercisable for two years following the issuance of Sygnus Capital’s new shares.

https://jamaica.loopnews.com/content/sygnus-real-estate-completes-exit-two-strategic-assets

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BY DAVID ROSE Observer business writer davidr@jamaicaobserver.com

Sygnus Real Estate Finance is seeking to raise $3.45 billion in a private placement.

Sygnus Real Estate Finance Limited (SRF) will be seeking to raise $3.45 billion through a debt instrument as it prepares for its second investment cycle while it awaits the proceeds of its current projects.

SRF launched the debt raise earlier this month as it looks to deploy some capital into new real estate investment notes (REINs) and monetize more of its real estate assets. The latest debt raise comes at a time when $1.68 billion in debt matures by June 30. REINS are simply debt instruments that allows SRF to ‘lend’ capital to other real estate projects which act as the security or collateral for the REIN.

“We would have launched over the past week to raise up to J$1.9 billion and US$10 million in a multi-tranche secured debt capital raise and this is effectively to fund those strategic projects we mentioned earlier and REINs. Where we have specific projects such as new JV’s [joint venture] coming on stream or any of those two strategic projects, we will seek to raise quasi-debt or equity capital at those specific subsidiary levels to ensure that those projects are executed,” said Jason Morris, co-founder and chief investment officer of Sygnus Capital Limited, at SRF’s earnings call on April 16.

SRF’s first lifecycle saw it do several REINs across Jamaica, but also work on completing its two strategic projects of Spanish Penwood on Spanish Town Road and One Belmont on Belmont Road. SRF had originally valued its Spanish Penwood property at $1.11 billion in August 2023 and sold 67 per cent of the project to two investors. However, Morris mentioned that SRF will now be keeping the remaining stake, which he stated will bring more value based on how its structured. As a result, SRF will benefit from lease income on the property which began in July 2023 to its current tenant IMCA Jamaica Limited, the exclusive local dealer of Caterpillar construction equipment.

“In terms of One Belmont, what we’re doing now is have the property tenants going through the designs of the interior build out with a view to then obviously starting the clock on lease payments. Simultaneously, we are structuring our exit in a way such that SRF at its option can maintain a stake in the asset and to allow institutional investors, primarily pensions funds and secondly, retail investors to participate in the cash flow generation capacity of One Belmont,” said Morris at SRF’s AGM on March 21.

Morris added, “We’re at the early stages and we have a pretty good idea of the vehicle we want to use, how the [investment] vehicle should be structured, and we’ve already canvassed our market read. The next step obviously would be to represent to the investing public the opportunity to participate in the cash flows of One Belmont. So, we would expect that would occur close to the late third quarter.”

The move by SRF to retain some interest in two of its projects is likely a signal of its plans to not only benefit from capital appreciation, but also from capitalisation rate expansion when the performance of the properties can be judged with market rate leases. SRF is also benefiting from market rates on its lease at Spanish Penwood, but not at the 1-3 Hillcrest Avenue and 58 Lady Musgrave Road properties which Morris mentioned as inherited leases.

The partial exit of One Belmont will be the key for SRF’s plan to pay its first dividend to shareholders. SRF listed in September 2021, but has not paid dividends as yet due to the need for its assets to be monetized which occurs at the end of a development project.

With its first and second lifecycle now overlapping, SRF investors will benefit from Sygnus Capital’s management fee being reduced to 1.0 per cent for the current financial year and 1.25 per cent for the next financial year before it returns to 2.0 per cent in September 2025.

SRF is now looking to begin construction later this year on its 55-acre Lakespen property in St Catherine which has been earmarked for industrial purposes. SRF is also nearing a decision regarding its 14-acre beachfront property in Mammee Bay, St Ann. SRF also plans to monetize different properties by year end such as 1-3 Hillcrest, 56-58 Lady Musgrave Road and 26 Seaview Avenue. SRF is still considering the value enhancement options for 16 Montrose Road, which is a joint venture that it holds a 51 per cent stake in. SRF has committed US$1.4 million (J$215.04 million) to Monadh Rois Limited which holds the Montrose Road property.

SRF’s second quarter saw it record a larger net loss of $187.15 million which is a result of SRF only revaluing its real estate assets at year end. Thus, for the overall six months, SRF’s net loss is $320.13 million with a loss per share of $0.98.

SRF’s total assets are marginally up over the six months to $15.22 billion with investment property valued at $10.47 billion and interest in joint venture at $1.54 billion. Total liabilities and shareholder’s equity were $7.74 billion and $7.48 billion, respectively.

SRF’s stock price closed April 19 at J$14/US$0.09, which leaves both securities up 37 and 29 per cent, respectively, in 2024. The USD stock price closed at US$0.1274 on March 21, which is the highest it has been since the listing price of J$19.30/US$0.127.

This increase in stock price comes weeks after SRF’s annual general meeting on March 21 where 32 shareholders voted in favour and 10 shareholders voted against the special resolution to convert a $377.91-million performance fee owed to Sygnus Capital into SRF ordinary shares. This resolution resulted in the fee being converted into 20,707,342 ordinary shares at a price of $18.25 per share. This will put Sygnus Capital as the second largest shareholder, squarely behind ATL Group Pension Fund Trustees Nominee Limited which has 42 million shares or a 12.9 per cent stake.

Warrants will also be issued at a later date to shareholders which give them the right to purchase new SRF shares at J$18.25/US$0.12. The warrants are to be issued at one warrant for every 15 ordinary shares and will have an exercise period of two years after Sygnus Capital’s new shares are issued.

“We are seeking to monetize and optimize the real estate investment mix. As we do that, you can expect there to be some shift in terms of the value that is being represented by investment property, perhaps going down a bit and then you can also expect the value in real estate investment notes going down a bit at first, and then ramping up substantially. We are also looking to ramp up substantially our deployment of capital via joint ventures by partnering with many other owners of real estate across Jamaica and the wider Caribbean,” Morris closed.

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