Sygnus Real Estate Finance Returns to Profit in Q3 2025 Following Delphin Holdings Acquisition

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Sygnus Real Estate Finance (SRF) has posted a strong third-quarter performance for 2025, returning to profitability on the back of a strategic joint venture investment in Delphin Holdings Limited (DHL).

SRF, which has acquired 86% of the ordinary shares in DHL, reported a net profit of J$151.74 million for the quarter ended May 2025. This marks a significant turnaround from the J$136.02 million net loss reported in the same period last year.

The company’s improved financial performance was attributed primarily to the DHL acquisition, which included 4.9 acres of strategic real estate in Trelawny.

Consistent Growth Across Key Metrics

  • Q3 Net Profit: J$151.74 million (vs. J$38.23M in Q2)

  • Book Value Per Share: Up 7.3% to J$24.14 (from J$22.49)

  • Retained Earnings: Up J$659.83 million to J$3.29 billion

  • Five-Year Average Return on Equity: 19.1%

SRF also reduced its cumulative net loss for the nine months ending May 2025 compared to the same period last year. These improvements signal sustained progress across multiple projects and revenue streams.

Revenue Rebound Driven by Joint Ventures and Gains

SRF’s total investment income (core revenue) moved into positive territory for the quarter, reaching J$380.54 million, a sharp reversal from a negative J$82.43 million in the prior year’s quarter. For the three quarters combined, core revenues hit J$407.13 million, up from negative J$137.74 million last year.

Major contributors included:

  • Lease and other income

  • Gain on share acquisition: J$95.48 million

  • Gain on disposal of financial instruments: J$33.73 million

  • Share of gain on joint ventures: J$583.11 million (vs. J$7.18M loss in 2024)

The J$543.85 million share of gain on joint ventures for the quarter was a direct result of SRF’s increased ownership stakes, including a new venture, 5658 LMR Limited, which holds two resort villa properties in Ocho Rios, St. Ann.

Updates on Key Projects

SRF continues its interior build-out for tenants at the One Belmont commercial tower in New Kingston and is in the process of monetizing a partial exit from that investment.

Progress is also being made on:

  • The Mammee Bay hospitality asset in St. Ann

  • The Lakespen industrial property in St. Catherine

These ongoing developments are part of the firm’s long-term value creation strategy.

Rising Expenses and FX Losses

While revenue and asset growth were strong, foreign exchange losses impacted the bottom line. SRF recorded a J$58.11 million FX loss for Q3, compared to a gain of J$20.03 million in the same quarter last year.

Operating expenses also rose:

  • Q3 Operating Expenses: J$115.25 million (up 47.3%)

  • Nine-Month Operating Expenses: J$302.05 million (up 20.3%)

The increase was largely driven by professional fees tied to the Mammee Bay property and higher management fees compared to FY 2024.

Our Opinion
Sygnus Real Estate Finance’s return to profitability reflects strong execution of its joint venture strategy and a disciplined approach to asset development. While foreign exchange volatility and rising costs remain areas to watch, the overall outlook for SRF appears optimistic, especially as its high-value projects near maturity. Investors should continue to monitor how strategic exits, such as from One Belmont, impact liquidity and shareholder returns in upcoming quarters.

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