3 weeks ago
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Dormitory operator 138 Student Living Jamaica Limited (138SL) closed its financial year on solid ground, reporting higher revenue and improved earnings, amid ongoing negotiations with The University of the West Indies (UWI) over Irvine Hall.
The company continues to negotiate with the UWI to “reset” its concession agreements, including operational responsibilities and long-term benefits for both parties.
“Negotiations with the UWI regarding the Irvine Hall Concession Agreement are at an advanced stage and are expected to conclude by the end of the first quarter of the financial year,” stated Chairman Ian Parsard in the preface to the financials, referring to the quarter ending December 31.
138SL operates under two long-dated agreements with the UWI, a 65-year concession to construct and rent student living facilities, and a 35-year Restoration Concession Agreement covering traditional halls, including Irvine Hall.
The company adjusted its 2022, 2023 and 2024 financials to account for claims tied to Irvine Hall operations under the Restoration Concession Agreement and retrospective utility charges invoiced by the UWI. Management applied international accounting standards – IAS 8, and restated comparative figures accordingly.
The restatements pulled down previously reported revenue and profits for the three years. For the financial year ending 2024, total revenue was lowered by $213.4 million to $1.316 billion, while net profit was reduced by $201.7 million to $143.1 million. Similar reductions were reflected in the 2023 and 2022 income statements and equity, aligning the accounts with the evolving Irvine Hall claims and UWI’s back-billed utilities.
For the quarter ended September 30, 2025, revenue came in at $318.5 million, down 14 per cent year-over-year, mainly due to lower recognition of Irvine Hall variation claims and reduced interest income on UWI receivables. Profit from operations fell 16 per cent to $113.9 million, with an operating margin of 35.8 per cent. Net profit for the quarter was $38.3 million, compared with $50.2 million a year earlier – a decline of about 24 per cent.
Across the full year, however, momentum allowed for stronger results. Twelve-month revenue rose 6.0 per cent to $1.39 billion, while net profit climbed to $245.8 million from $143.1 million – an increase of about 72 per cent. Earnings per share advanced to $0.46 from $0.27, up 70 per cent.
Occupancy remained strong, averaging 82 per cent for the year and peaking at 99 per cent at fiscal year end, underscoring resilient demand for on-campus housing.
Cash and cash equivalents ended at $76.4 million, down from $101.4 million, reflecting the company’s use of cash to reduce debt.
Total assets stood at $9.9 billion, broadly flat year-over-year, with service concession rights of $8.89 billion representing the core asset base. On the liabilities side, the company increased its lease obligations and utility amounts payable to the UWI.
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