Dividends galore coming

December 19, 2013 by

It should be a Merry Christmas for investors in the companies listed on the Jamaica Stock Exchange as several companies have either announced dividend payments or have announced plans to make one.

Sagicor Investments Jamaica Limited declared an interim dividend in the amount of 91 cents per stock unit payable on January 28, 2014 to stockholders on record as at January 7, the ex-dividend date of January 3. The company paid an interim dividend of 12 cents per stock unit on October 31, 2013 and 48 cents per stock unit on March 27, 2013. In 2012, Sagicor paid a dividend of 57 cents per stock unit on October 29, 2012 to stockholders and 74.3 cents per stock unit on April 27, 2012.

Jamaica Producers Group Limited has declared an interim dividend of $0.20 per share payable on January 28, 2014 to shareholders on record as at December 31. The ex-dividend date is December 27.

Supreme Ventures Limited has declared a dividend of $0.03 per share payable on January 8, 2014 to shareholders on record as at December 20. The ex-dividend date is December 18.

Jamaica Public Service Company Limited has declared quarterly preference share dividends payable on December 31, 2013 to shareholders on record as at December 13, as follows:

  • JPS 5% “C” – $0.025 per share, JPS 5% “D” – $0.025 per share, JPS 6% “E” – $0.030 per share
  • JPS 7% “B” – $0.035 per share. The ex-dividend date is December 11, 2013.

FirstCaribbean International Bank Limited declared a final dividend for the year ended October 31, 2013 of US$0.015 per share payable on January 30, 2014 to shareholders on record as at December 19. The ex-dividend date is December 17.

Kingston Wharves has declared an interim dividend of 8 cents per share payable on December 20, 2013 to shareholders on record as at December 13. The ex-dividend date is December 11. This brings the payment for 2013 to 16 cents per share compared with 12 cents in 2012. The company paid a final dividend of 2 cents per share in respect of the financial year ended December 2012 and an interim dividend of 8 cents per share in respect of the current year, on Thursday, March 28.  On December 21st last year, a dividend of 10 cents per share was paid.

Hardware & Lumber declared an interim dividend for the year 2013 of 30 cents per stock unit payable on January 17, 2014 to stockholders on record as at December 20. The ex-dividend date is December 18, 2013. The company last paid a dividend of 12.5 cents per stock unit on January 31, 2013.

The Board of Directors of  Scotia Group Jamaica announced a final dividend of 40 cents per stock unit payable on January 13, 2014, to stockholders on record at December 18, 2013. Scotia Investments also declared a final dividend of 45 cents payable on January 13 next year. Both companies have been paying 40 and 45 cents per share from the last quarter of 2012.

Salada Foods Jamaica declared a dividend of 40 cents per share payable on December 19, 2013 to shareholders on record as at December 3. The ex-dividend date is November 29, 2013. The company last paid a dividend of 40 cents per share on January 8, 2013.

Paramount Trading declared an interim dividend of 13.5 cents per share payable on December 10, 2013 to shareholders on record as at November 29. The ex-dividend date is November.

Lasco Distributors is to pay an interim dividend of 2.3 cents per share payable on December 10, 2013 to shareholders on record at November. The ex-dividend date is November 22. The last dividend paid was of $0.25 per share payable on July 31, 2012 based on the number of shares in existence then in June this year the company split the stock into 10 shares for each one already issued..

Jamaica Money Market Brokers declared a 16 cents per share dividend payable on December 18, 2013 to shareholders on record on November 27. The ex-dividend date is November 25. This is a 23% increase over the prior period. The last dividend paid was 10 cents per share on March 28, 2013. Last year December a dividend of 13 cents per ordinary share was paid.

Pan-Jamaican Investment Trust declared a third interim dividend of 50 cents per share payable on December 20, 2013 to shareholders on record as at November 27. The ex-dividend date is November 25. PJAM paid 45 cents on September 20, $1.10 on March 25, and 55 cents on December 20 last year.

Carreras declared an interim dividend of $1.00 per share payable on December 11, 2013 to shareholders on record as at November 20, 2013. The ex-dividend date is November18, 2013. The company last paid a dividend of a similar amount in August. The amounts represent a cut from $1.50 that investors had become accustomed to.  A slide in profits from a drop in sales have resulted in the cut.

Grace Kennedy declared an interim dividend of $0.70 per share payable on December 11, 2013 to shareholders on record as at November 22, 2013. The ex-dividend date is November 20, 2013.

Proven Investments declared a dividend of US$0.0022 per ordinary share payable on December 3, 2013 to shareholders on record at November 19, 2013. The ex-dividend date is November 15, 2013. The also declared a preference share dividend of $0.10 per share payable on December 23, 2013 to shareholders on record as at December 9, 2013. The ex-dividend date is December 5, 2013.

Dolphin Cove declared an interim dividend of $0.10 per share payable on December 4, 2013 to shareholders on record as at November 15, 2013. The ex-dividend date is November 13, 2013.

Dividends for consideration | The Board of Directors of Barita Investments Limited will consider (and if thought fit), recommend the payment of an interim dividend for the financial year ended September 30, 2013 at a meeting to be held on Friday, December 20, 2013.

The Board of Directors of Caribbean Producers Jamaica Limited will consider a dividend payment at a meeting to be held on Monday, December 23, 2013.

AMG Packaging & Paper Company will consider the payment of an interim dividend at a meeting scheduled for Tuesday, January 7, 2014.

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Sagicor offers shares in Real Estate X Fund

September 18, 2013 by

Sagicor Real Estate X Fund is offering shares in an initial public offering (IPO) which opens on September 24, 2013 and will close on October 18, 2013. The offer is subject to the right of the Company to close the Subscription List at any time without notice if subscriptions have been received for the full amount of the shares available for subscription and also subject to the right of the Company to extend the closing beyond that date. The shares are expected to be listed on the Jamaica Stock Exchange.

A maximum 500,000,000 shares are available for subscription in this IPO with a minimum of 100 shares and in multiples of 100 shares. In the event that subscriptions or applications are received for more shares than the number of shares available for subscription and sale in this IPO, X FUND reserves the full, unqualified and absolute right to increase the number of shares in the IPO in order to satisfy all or part of the applications in excess of the 500,000,000 shares, which are comprised in the IPO but not exceeding a further 750,000,000 shares. Sagicor Jamaica and PIF have indicated that they jointly intend to exercise their options to buy shares at the IPO price with a view of holding up to 80% of the issued shares of X FUND.

The fund will invest in Sagicor real estate unit trust which holds the following properties in the fund: The R. Danny Williams Building (formerly Sagicor Centre in New Kingston), • 63-67 Knutsford Boulevard (New Kingston) • 78a Hagley Park Road (Kingston) • Sagicor Industrial Park (Marcus Garvey Drive Kingston), • Sagicor Industrial Park (Freeport, Montego Bay) • Sagicor Montego Bay Commercial Centre (Montego Bay) • Sagicor Industrial Park (Norman Road Kingston) • Spanish Town Shopping Centre (St Catherine) • 23-25 Seymour Avenue (Kingston) • Jewel Dunn’s River (St Ann)  • Jewel Runaway Bay (St Ann) • Jewel Paradise Cove (St Ann).

SagicorRealEstFundLogo280x150The authorised capital of the Company is US$5,000,001,000. There is a Special Share which is held by Sagicor Jamaica, which the company sates is to ensure that the structure of the investment is not subverted by investors who may acquire substantial interest in the Company.

Sagicor Real Estate X Fund Limited (“X FUND”) is an International Business Company incorporated in Saint Lucia. Since its incorporation on May 31, 2011 it has not conducted any business on its own account other than to enter into certain agreements in anticipation of this IPO. The fund proposes to apply the proceeds of the IPO (“the IPO Proceeds”) to acquire other units in the Sigma Real Estate Portfolio. Pending investment of excess cash in units in the Sigma Real Estate Portfolio, the X FUND may invest in other assets including marketable securities. Thereafter the Company will carry on business as a passive investment holding company.

X Fund intends to distribute by way of dividends up to 85% of its annual net realised income.

The Articles of Incorporation of X FUND specifically authorises X FUND, from time to time, by a resolution of its directors, to issue additional shares in exchange for units in the Sigma Real Estate Portfolio. This will allow X FUND to purchase additional units from Sagicor Jamaica and/or PIF or direct from Sigma Real Estate Portfolio, without securing the approval of the shareholders in general meeting.

IC Insider call | Return on real estate in the form of income is low and growth in the value of the share price is unlikely to be rapid and may not show any growth in the short run. The fund provides a means of diversifying into the real estate market as well as in the tourism sector, but the latter can be great for a few years and not so great for some years.

This IPO is a real estate play that will not give investors the best return for their money. Investors will be buying shares at 100 percent book value with roughly a 4 percent yield in Year One. Meanwhile, the Pan Jamaican Investment Trust, which has real estate assets amounting to around 25 percent of total assets and generating a third of gross income from real estate, is selling at a huge discount to book value of $51 versus book of $78. Additionally, Pan Jamaican’s decision to invest in the new Marriott Kingston hotel, and no doubt with low interest rates, as well as other ventures into real estate developments, is likely to enhance the real estate portfolio over time. More importantly, the share price of Pan Jam stands a much greater chance of appreciation than a pure real estate fund.

The fact is that real estate does best when leveraged. Specifically, the Kingston Properties REIT is an excellent real estate play that could outperform the Sagicor Real Estate X Fund over time.

Related posts | Pan Jam profit stable | KPREIT a medium term investment

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Pan Jam profit stable

August 28, 2013 by

Pan Jamaican Investment Trust released results for the half year to June and reported profit attributable to shareholders for the June quarter of $486 million, a slight 4 percent increase on the $468 million in the 2012 quarter. For the six months ended June, Pan Jam made $710 million, compared to $970 million for 2012, a decrease of 27 percent.  The results equated with earnings per share amounted to $2.28 for the quarter and $3.34 for the six months to June.

The year to date results were negatively affected by the decision by both Pan Jam and the Sagicor group, an associate, to swap older debt with a higher book value for new government of Jamaica debt at a lower value (JDX2) which resulted  in a large loss.

pan_jamaican_logo150x150Helping to boost the results was the share of results of associated and joint venture companies which rose from $227 million to $532 million in the June quarter and up from $305 million in 2012. For the six months to June, these investments resulted in $769 million being booked and is largely due to an increased shareholding in Sagicor, which was partly offset by increases in finance costs of $119 million.

In their comments on the results, Management stated that “Investment income of $44 million in the second quarter was lower than last year’s comparable quarter by $36 million, as unrealised losses on securities trading of $26 million eroded foreign exchange gains, interest income and dividends. Year to date investment income of $145 million is 27 percent ahead of last year due principally to significantly higher foreign exchange gains. Property income was flat compared to last year for both the quarter and year to date, as stable occupancy levels and continuing modest growth in rental income were offset by reduced property revaluation loss.

“Group operating profit for the 2nd quarter decreased by $73 million or 32 percent, compared to last year’s 2nd quarter. For the year to date, group operating profit of $388 million is $23 million or 6 percent less than last year’s level. Total revenue was lower for the quarter compared to last year by $32 million, 7 percent, principally attributable to the decline in investment income, but ahead of last year for the 6 months.”

Occupancy | The group enjoyed overall rental occupancy exceeding 95 percent for the 2nd  quarter, a slight decline from last year, while contribution to group operating profit of $158 million for the quarter ($342 million year-to-date) was $42 million ($16 million year-to-date) lower, attributable to reduced property revaluation gains.

Operating expenses | Management said that operating expenses increased by $41 million for the quarter, and $69 million for the 6 months, driven by increased levels of direct property costs, professional fees associated with investment opportunities and general increases in staff costs. Finance costs increased compared to last year by $119 million to $137 million for the quarter, and by $298 million to $331 million for the 6 months, resulting from increased loans booked.

PamJamChukkaCove150x150Associated Companies | The associated companies consist principally of a 32.8 percent investment in Sagicor; minority positions in New Castle Co. Limited, owners of the Walkerswood and Busha Browne lines of sauces and seasonings; Mavis Bank Coffee Factory Limited; Hardware & Lumber Limited; Caribe Hospitality Limited (developers of the planned New Kingston Marriott Courtyard Hotel) and Chukka Caribbean Adventures.

Pan Jam’s share of Sagicor’s comprehensive income for the quarter was a loss of $426 million consisting primarily of unrealized losses on available-for-sale securities, net of exchange gains. For the year-to-date, the share of the net unrealized loss is $275 million, compared to a share of net unrealized gains of $52 million for the comparable period last year.

According to management “New Castle’s results for their fiscal year ended April 30 2013 increased more than threefold on the back of a 44 percent jump in revenue, while Mavis Bank again posted good results. Chukka overcame Hurricane Sandy-related disruptions to cruise ship passenger arrivals and the temporary closure of the cruise ship port in Turks and Caicos to post returns in line with expectations.”

Balance Sheet | Total assets at June amounted to $22 billion, compared to $21.4 billion at the end 2012. Stockholders’ equity increased to $16.6 billion equating to a book value per stock unit of $77.85.

Related posts | Pan Jam’s profit dented too

Filed Under: Company News, Company Results Tagged With: ,

Pan Jam dividend set at 45 cents

August 10, 2013 by

Pan-Jamaican Investment Trust declared a second interim dividend of $0.45 per share payable on September 20, 2013 to shareholders on record as at August 23. The ex-dividend date is August 21, 2015.

Pan Jamaican made a payment of $1.10 cents in March and forego what would have been a second payment in June. The payment to come is a reduction in the amount that is normally paid per quarter.

Related Post | Pan Jam’s profit dented too

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Pan Jam’s profit dented too

May 26, 2013 by

Pan Jamaican investment trust reported net profit of $224 million, down 55 percent on 2012 earnings of $502 million for the quarter ending March.  The results were impacted significantly by Sagicor Life Jamaica Limited (SLJ) participation in the Government of Jamaica National Debt Exchange in February. SLJ recorded a realised loss on the exchange of bonds tendered in the NDX of $1.1 billion. Associated and joint venture companies contributed less profit for the quarter, declining by $136 million compared to the 2012 1st quarter amount of $373 million. The share of SLJ’s earnings, decreased by $175 million (47%) to $194 million.

The earnings per stock come out at $1.05 (2012: $2.36).  The fall in earnings from the associates is temporary and will not affect the company’s operations in a major way going forward. The effect is a reduction in interest income as the bonds swapped carry lower coupon rates than the original ones.

Increased cost | The group incurred an increase in finance costs of $179 million and a decrease of $136 million in the share of results of associated and joint venture companies, this was partly offset by increased investment income of $67 million resulting from foreign exchange gains on our US$ investments. Property income was flat year on year, as a $10 million improvement in rental income was offset by reduced net lease recoveries and property appreciation. Operating expenses increased 13 percent or $28 million, driven principally by a 27% increase in general and administrative costs as a result of staff realignment and increased professional fees.

Sagicor150x150As per the company’s report: “Finance costs increased by $179 million to $195 million for the quarter, resulting from increased debt used to fund the purchase of an additional 8% of SLJ’s shares in July, 2012 and the drawdown of the remainder of the US$17.5 million IFC loan in December, 2012. We have, however, retained a net long position in US$ to ensure that our stockholders’ equity is appropriately protected against devaluation risk. Rentable properties enjoyed occupancy levels exceeding 95% for the 1st quarter, while segment operating profit of $184 million for the quarter was $26 million, 16%, better than last year. Our investment management segment posted operating profit of $28 million for the quarter, more than double last year’s 1st quarter segment operating profit of $12 million.”

Associate & Joint Ventures | “Associated companies consist principally of our 32.8% investment in SLJ. We also hold minority positions in New Castle Co. Limited (owners of the Walkerswood and Busha Browne lines of sauces and seasonings), Mavis Bank Coffee Factory Limited (“Mavis Bank”), Hardware & Lumber Limited (“H&L”), Caribe Hospitality Limited (developers of the planned New Kingston Marriott Courtyard Hotel) and Chukka Caribbean Adventures (“Chukka”) acquired in April 2012.”

PamJamChukkaCove150x150H&L reported net earnings of $9.9 million for the 1st quarter, compared to $3.9 million for the same period last year. Revenue and gross margin both increased compared to last year. The investments in Chukka and Mavis Bank produced solid results.

Total assets amount to $21.7 billion and stockholders’ equity increased to $16.5 billion, equating to a book value per stock unit of $78.

Stock outlook | A dividend of $1.10 per stock unit was paid March 2013.  The company will not pay the usual quarterly dividend in June, having doubled up on the one paid in March.The stock which traded on Wednesday, 22nd May at $54 is considered to be severely undervalued and is a good long term investment.

To read IC Insider’s latest report “Sagicor undervalued despite $B NDX hit” , click here.

Filed Under: Company News, Company Results Tagged With: , ,

Yes and no to dividends

May 17, 2013 by

It has come as no surprise that Pan Jamaican Investment Trust has decided to forgo the payment of a dividend, a decision made at the board meeting held on the 16th of May. The group has been making payments of 50 cents per quarter but upped it to $1.10 in March. The directors stated “having paid $1.10 in March 2013, the Directors agreed that it would not be prudent to pay another dividend at this time and will consider another dividend in the third quarter”. The increased amount was apparently due to a decision by government to increase withholding tax from 5 percent to 15 percent.

SVL to pay 8 cents | The Board of Directors of Supreme Ventures Limited declared a dividend of $0.08 per share payable on June 17, 2013 to shareholders on record as at June 3, 2013. The ex-dividend date is May 30, 2013.

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Dividends to come

May 10, 2013 by

The Board of Directors of Desnoes & Geddes (D&G) has advised that they will meet on Thursday, May 16, 2013 to consider the payment of a second interim dividend for the year 2013. On the same date the Board of Directors of Pan-Jamaican Investment Trust will meet to consider the payment of a second interim dividend for the year.

If the dividend is approved, Desnoes & Geddes would be returning to the regular practice of paying two dividends per year, which was suspended when the operations was faced with challenges after the global economic crisis took full effect in Jamaica. The company paid 20 cents per share in December.

Pan Jamaican already made a payment of $1.10 cents in March and if the Board approves, it would be the second of four for the year and likely to be $0.50.

The Board of Directors of Dolphin Cove has declared a dividend of $0.10 per share payable on June 6, 2013 to shareholders on record as at May 20, 2013. The ex-dividend date is May 16, 2013. This payment is likely to be the second of three for the year having paid one in March already.

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