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138 Student Living Records Incremental Profit Growth and Plans for Strategic Expansion

138 Student Living (138SL) reports a slight profit growth, improved relations with UWI Mona, and strategic business expansion plans amidst challenging investment conditions.

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Israel Ojoko
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138 Student Living Records Incremental Profit Growth and Plans for Strategic Expansion

138 Student Living (138SL), a premier developer of student housing accommodations, has reported a subtle uptick in profit for the fiscal year ending September 2023. The company, which operates accommodations at The University of the West Indies, Mona (UWI Mona), saw profits climb to a modest $343 million, marking a second consecutive year of growth. This development comes on the heels of a decline in rental income during the zenith of the COVID-19 pandemic.

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Revenue Growth and Rental Dynamics

The company's core revenue swelled by 9% to reach $1.3 billion, with a significant 92% stemming from long-term rentals. This growth spurt is largely credited to improved relations with UWI Mona and an increased emphasis on short-term rentals. Two years ago, 138SL and UWI Mona amended their concession agreement to correspond more accurately with the building renovation efforts undertaken by 138SL Restoration.

Revised Financial Model

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The updated agreement guarantees a minimum 90% occupancy rate, with UWI Mona compensating for any potential shortfall. This revised financial model establishes a more objective foundation for claims made by 138SL. At the financial year's end, 138SL reported receivables of $597 million from UWI Mona, which is a significant rise from $481 million in the preceding year.

Future Prospects and Expansion Plans

Despite grappling with challenging investment conditions induced by escalating interest rates, 138SL remains sanguine about diminishing its debt and broadening its operations. However, its recent endeavor to amass $2.15 billion resulted in a lesser yield of $500 million. The company's board is currently contemplating the next steps to further its expansion plans.

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