Durrant Pate/Contributor

First Rock Real Estate Investments’ decision late last year to transition into a Real Estate Investment Trust (REIT) is reaping much dividends, as the company has made a remarkable turnaround in fortunes during the just-ended second quarter. 

The Ryan Reid-led company delivered another solid performance for the June quarter, coming out of the red with net profit attributable to ordinary shareholders amounting to US$466,237, which yielded an Earnings Per Share (EPS) of US$0.002. This erases the loss of US$618,647 posted for the same period last year.

For the half-year period, shareholders’ net profit grossed US$1,004,152, which yielded an EPS of US$0.004, coming from the US$779,105 loss posted last year.

Big jump in rental income

The group’s year-to-date rental income stood at US$639,048, which represents a significant increase over the comparable period in the second quarter of last year. The Norman Reid-chaired board says this performance “further underscores the success of the group’s targeted acquisition of premium income-generating commercial properties across the Caribbean. Year-to-date realised and unrealised gain on investment properties increased to US$2.1 million, representing a marked increase of 283% over the comparable period in Q2 2024.”

This performance increased First Rock’s overall property income by 49% when compared to June 30, 2024. Total expenses totalled US$1,492,659 for the six-month period, representing a 52% reduction over Q2 of 2024. This shows the group’s continued commitment to cost optimisation and operational efficiency.

Growth drivers

As at June 30, 2025, total assets stood at US$60.9 million, representing a 6% increase over the comparative period in 2024. This growth was partly driven by the acquisition of a property in Coyol, San Jose, Costa Rica, to house a new KFC restaurant and a distribution facility, which is at the completion stages of construction. 

Shareholders’ equity amounted to US$26.9 million, while liabilities stood at US$33.9 million as at June 30, 2025, yielding a debt-to-equity ratio of 1.26. This continues to exhibit First Rock’s prudent use of leverage in line with industry norms for the real estate sector.

Hunting for more investment properties

First Rock is active in negotiations for additional commercial properties in key Caribbean and Latin American markets with the aim of further diversifying income streams and enhancing shareholder value. With these initiatives in progress, the company, which has six subsidiaries, remain on track to achieve a significant milestone in its REIT conversion by the third quarter of 2025. 

The board and management delivered a positive outlook for the remainder of the year with strong momentum, supported by improved earnings, higher rental income, and enhanced portfolio efficiency. 

First Rock remains focused on executing its strategy to strengthen recurring revenues through premium, income-generating assets and targeted divestments of non-core holdings.