Barita Investments Limited will start developing properties held by affiliate MJR Real Estate Holdings Limited.
“Within this calendar year, you will start to see visible activity surrounding that,” said Barita Investments CEO Ramon Small-Ferguson at the company’s quarterly briefing last Thursday. “Over time, it is anticipated that all the properties in the portfolio will be subject to development.”
MJR Real Estate holds properties worth billions of dollars, but their development was put off due to the contraction of aspects of the real estate market. The portfolio includes Reggae Beach, 286 acres; Green Castle, 1,600 acres; Eden Gardens, two acres; the former Kingston ice factory, three acres; and Windsor Estates, 100 acres. Barita’s parent company, Cornerstone, plans to build its headquarters on the Eden Gardens lands at Lady Musgrave Road in New Kingston. The group previously expected to start earning from the developments in 2027.
The real estate sector, which includes sales, rentals, and realtor services, recorded its third consecutive quarterly decline in December, according to the Planning Institute of Jamaica. The sector fell by 1.5 per cent in April-June, 3.2 per cent in July-September, and 1.0 per cent in the October-December 2024 quarters.
Barita Investments reported a profit of $551 million for the first quarter ending December, up 15 per cent relative to the prior year.
“The performance during the quarter reflected the resilience of our strategy, underscored by our deliberate focus on revenue diversification,” the company reported to stockholders.
This growth was driven by a nine per cent increase in net operating revenue, which rose to $1.4 billion, supported by gains across key business lines, including treasury, trading, brokerage, and investment banking.
The outlook for Barita remains optimistic within an uncertain economic landscape that’s beset by geopolitical tensions, inflationary pressures, and potential US tariff hikes that pose risks to global trade and investment flows. Locally, the aftermath of Hurricane Beryl has dampened near-term growth prospects, with the PIOJ forecasting economic contraction of 0.5 to 1.5 per cent for fiscal year ending March 2025.
“Despite the challenges posed by a difficult operating environment, our significant investments in transforming our business model, together with our continuous robust capitalisation, give us confidence in our ability and capacity to thrive,” said Barita.
During the quarter, net interest income grew by 15 per cent to $169 million, as the company benefited from the easing of monetary policy which reflected the Bank of Jamaica’s 100-basis point reduction in the policy rate from 7.0 per cent to 6.0 per cent during the calendar year. Non-interest income also contributed to profit rising 8.0 per cent to $905 million, fuelled by a 56 per cent increase in gains from investment activities, particularly in fixed-income securities. However, foreign exchange trading and translation losses of $185 million partially offset these gains.
Barita’s capital dipped to $35.5 billion in December 2024 from $36.7 billion a year earlier. The company’s capital adequacy ratio, at 24.59 per cent of the $139.6 billion in total assets, remains above the 10 per cent regulatory minimum.
