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Sygnus Real Estate Finance Limited has closed its financial year on a strong note, with a 150 per cent surge in net profit, buoyed by significant fair value gains on investment properties and joint ventures.
Reporting to investors, Chief Investment Officer for Sygnus Group, Jason Morris, said total investment income climbed 92 per cent to $1.61 billion, up from $839.2 million in the prior year. Net investment income, which strips out operating expenses, more than doubled to $1.18 billion, reflecting the company’s aggressive repositioning during the first year of its second investment cycle.
Profit for the year totalled $787 million, resulting in a spike of earnings per share from 90 cents to $2.34 at year ending August 2025.
Gain on investment property, which more than doubled to $1.08 billion, was driven largely by the revaluation of the 55-acre Lakes Pen industrial property, which is soon to be developed.
Earnings from joint ventures spiked 51 per cent to $748 million, following Sygnus RE’s increased stake in One Belmont from 70 per cent to 86 per cent and the acquisition of an 86 per cent interest in Delphin Holdings, a near five-acre beachfront property.
“These results validate our strategy of unlocking value through flagship assets and joint ventures, rather than outright acquisitions,” Morris said. “Our average return on equity since inception stands at 17.5 per cent, and we’ve grown paid-in capital 1.82 times over six years.”
Sygnus RE’s asset base expanded more than seven per cent to $17 billion in the past year, with real estate investments accounting for $16.63 billion. Investment properties remain dominant at 62 per cent of the portfolio, though joint ventures have made gains, climbing to 24 per cent, amid the company’s pivot towards partnership-driven growth.
Among the development projects under way or soon to be launched are One Belmont, a commercial building in New Kingston with two tenants in place and two more floors set for fit-out by summer 2026; Mammee Bay, St Ann – 14 acres, positioned for residential or hospitality development, with decision-phase discussions ongoing; Lakes Pen, St Catherine – 55 acres, for which regulatory approvals are pending, and construction is slated to start early 2026 under an executed contract; and Delphin Holdings – 4.88 acres of beachfront in Trelawny, currently under design review for mixed-use development.
Lakes Pen is positioned at the industrial sector, while Delphin is aimed at the hospitality sector.
Despite the upbeat results, Sygnus RE reported negative net interest income of $341.56 million, as interest expense outpaced income due to timing gaps between capital raises and asset deployment. However, Morris noted that $1.6 billion of the company’s debt is priced at floating rates, and recent Bank of Jamaica rate cuts have started to ease financing costs — a trend expected to accelerate post-Hurricane Melissa recovery efforts.
Looking ahead, Sygnus RE plans to expand beyond Jamaica and is eyeing opportunities in Cayman Islands, Guyana, and the Eastern Caribbean.
“We’ve raised over $4.11 billion in the past 18 months, giving us substantial dry powder,” Morris said. “Our approach remains patient and disciplined. We’ll move when the right opportunity aligns with our value-creation mandate.”
The company aims to execute its local projects, while pursuing regional diversification.
“We are not a REIT, nor a pure developer; we are an income-generating platform focused on capital gains,” said Morris. “Our job is to unlock value and return it to shareholders,” he said.
English (US) ·