Jan 2008 Financial News

Fortress Property Fund performing well

Jan 04, 2008

One of the more popular property funds in Barbados has witnessed a significant increase in profits for 2007. In fact, according to the latest directors report, a number of prime financial indicators of the Fund are suggesting that the 2007 performance of the Fund has been seeing significant growth.

Geoffrey Cave, Chairman of Fortress Caribbean Property Fund, in his Directors Report published earlier this week says, The Fortress Caribbean Property Fund had a much better year in 2007, net profits increased by 41 per cent to $7.3 million, compared to $5.1 million in 2006.

In addition, the revenues of the fund have also been on the increase, and according to Caves report, net revenues increased by 21 per cent to $11.9 million, while total expenses declined by 12 per cent to $2.9 million in 2006.

As highlighted by Cave, the two major contributing factors to this improved performance of the Fund comes with the successful sale of the 22 condominium units at Orange Hill in the Rockley development and an increase in fair value gains to $3.6 million, compared to $2.5 million in 2006. Moreover, net rental income increased by 7 per cent from the prior year.

It was also noted by Cave in his report that the total return for the year for the Fund stood at 9.56 per cent, which reflects a 5.15 per cent change in the net asset value (NAV) and a dividend of six cents per share, which equates to 4.41 per cent return. The net earnings per share amounted to 13 cents, compared to ten cents the previous year.

The Fund has also seen growth in terms of gross assets that have registered over $123 million with loans of only $ 25.6 million, resulting in the Fund being 22 per cent leveraged.

The Fund has generated $4.7 million in net cash from its operating activities proving adequate cover for the dividend paid.

Fortress Fund Mana gers Ltd that manages the Property Fund has three other mutual fund programmes open for Barbadians to invest in. These include Fortress Caribbean Growth Fund, Fortress Caribbean High Interest Fund, and Fortress Global Value Fund.

Source:
The Barbados Advocate
Friday 4th January, 2008

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