Lakespen drives profit at Sygnus

The real estate development firm Sygnus Real Estate Finance Limited (SRF) has reclassified and revalued assets at its Lakespen Industrial Park during its latest quarter, resulting in a 193 per cent rise in profit to $444.3 million.
“Lakespen development had a favourable gain of $806.9 million recorded during the period,” Chief Investment Officer Jason Morris told shareholders during the company’s earnings briefing.
During the quarter, the company reclassified $5.0 billion worth of land and infrastructure costs related to the Lakespen development at Cowpark, Caymanas Estate, as the project transitioned from investment property to active development.
“This represents parcels of land currently being developed as saleable lots situated at Bernard Lodge, St Catherine. Construction commenced in March 2026 and development in progress costs consist of expenditure directly attributable to the development,” the company stated in its latest quarterly filings.
The one-off revaluation gain on the Lakespen lands was higher than the profit earned in the quarter. SRF reported net profit of $444.3 million for the quarter ended May 31, 2026, compared with $151.7 million in the corresponding period last year, according to unaudited financial statements released on July 15.
He explained that the gain arose after construction commenced on the development in St Catherine. The $806.9 million gain appears in the financial statements as a change in fair value of investment properties, which brought the investment property portfolio to $6.73 billion at the end of the reporting period, down from $10.73 billion at the start of the period following the $4.86 billion transfer to development in progress.
The executive added that investors should not expect similar gains to recur related to that property.
“This value won’t change until we are exiting at the end of the project,” Morris said. “So there won’t be any more favourable gains coming through due to the change in the accounting treatment for Lakespen. I want to highlight that.”
The earnings call also reinforced what Morris has repeatedly described as the “lumpiness” of SRF’s results. Because the company invests in and develops large-scale real estate assets whose values are often reassessed periodically, profits can fluctuate significantly from quarter to quarter.
“Typically, due to SRF’s long-term nature,” Morris said, “what we would have is a quarter of the financial year being negative and the year-end being positive on the valuation.” He noted that this quarter’s results were unusual because a major valuation event occurred during the third quarter rather than at year-end.
The future pace of reported earnings from Lakespen will therefore depend less on valuation gains and more on the execution of lot sales and project exits.
Early demand for the industrial park appears encouraging.
Jonnell Whervin, SRF’s senior development project manager, said the sales process has already generated meaningful market interest.
“We have 55 acres with 34 lots available, ranging from 0.8 acres to 3 acres. And, as mentioned, the sales process is currently underway. We’re between reservations and under-offers, we’re approximately at 33 per cent,” Whervin told shareholders.
Whervin said Lakespen has been designed with resilience and security as key selling points. The development will feature underground electrical infrastructure aimed at reducing storm-related disruptions, as well as perimeter security measures including an eight-foot boundary wall and armed-response capabilities.
She also highlighted progress on other SRF assets.
At Mammee Bay in St Ann, a beachfront property located along the island’s tourism corridor, SRF is conducting due diligence and planning work aimed at unlocking value from the site. The property is situated near several major hotel developments.
Meanwhile, at the beachfront Delphin property in Trelawny, management is continuing planning and due diligence efforts as it evaluates development opportunities. The site is located near major resort properties and close to Sangster International Airport.
Whervin also reported steady progress at One Belmont, SRF’s commercial development. A third tenant has begun moving into the property, with occupancy activity expected to increase over the coming weeks.
Looking ahead, investors are likely to focus on whether SRF can convert interest in Lakespen into completed sales and cash realisations. While the quarter benefited from a substantial one-off valuation uplift, management’s message was clear: future performance will be driven by project execution, successful exits and the company’s ability to crystallise value across its portfolio rather than by further accounting gains from Lakespen.

neville.graham@gleanerjm.com