First Rock reaps from REIT
Published:Friday | December 5, 2025 | 12:07 AMNeville Graham - Business Reporter
First Rock Real Estate Investments Limited, FREI, has turned the corner in its third quarter, posting a modest profit after a bruising 2024.
The company’s pivot to a REIT, or real estate investment trust, model is beginning to bear fruit, according to First Rock Group Executive Chairman Ryan Reid, with rental income and disciplined cost management driving a positive outturn, he said.
For July-September 2025, First Rock Real Estate reported net profit of US$31,287, a sharp reversal from the US$674,537 loss in the corresponding quarter last year. While the figure is small, it signals a turnaround that Reid says is “absolutely sustainable”, given the company’s new focus.
“The REIT model is now bearing fruit,” Reid said in an interview with the Financial Gleaner. “We have properties outside of Jamaica that are really generating strong cash inflows in the form of rental income,” he said.
Year-to-date, FREI delivered US$1.04 million in net profit, compared to a loss of US$1.45 million for the same period in 2024. Reid attributes this to two key factors: expense rationalisation and consistent rental income growth.
Rental income for the nine months surged to US$951,438, up from just US$106,541. This was bolstered by premium commercial properties in Costa Rica and Cayman – markets that Reid describes as “leaner and more efficient” than Jamaica.
“Our target is to have a 50 per cent reduction in expenses, and I think we hit it now,” he said.
Total expenses for the nine months fell to US$2 million, down 50 per cent from the prior year.
The company also booked US$2.1 million in gains on investment properties, a 282 per cent increase, lifting property income by 61 per cent. These gains reflect fair value adjustments on investment properties, which Reid insists are rigorously audited.
“You can’t dream up figures — the auditors will not take kindly to it,” he said.
Despite the profit turnaround, operating cash flow remained negative at US$289,974, but was a marked improvement from the US$2.8 million net outflow in 2024. Heavy investment activity —particularly acquisitions and development — pushed cash used in investing to US$6.2 million, while financing inflows totalled US$11.3 million, driven by a US$14.9 million corporate bond issue arranged by Mayberry Investments Limited. This refinancing allowed FREI to settle obligations to Sagicor Bank Jamaica and reclaim full control of its Hambani project.
The company closed the quarter with cash of US$5.36 million, up from US$1.06 million a year earlier, giving the group breathing room as it eyes expansion.
Hambani Estates, a luxury residential development in Liguanea, Kingston, remains a lingering issue. Reid said the company is working to exit Hambani by June next year. It expects to complete the sale of all the apartments by then.
In an update on the project’s progress, Reid told the Financial Gleaner that work continues on three units, out of a total of 12, but are nearing completion. As for the other nine units, one has been handed over to the buyer and eight are under contract for sale.
“We definitely will be out of the project by mid-2026,” Reid asserted. “We just need to make it happen. From all intents and purposes, we should hit that,” he said.
Meanwhile, the push for rental income is the priority. FREI projects rental income of US$1.2 million to US$1.3 million by year end and aims to double that to US$2.5 million in 2026 through acquisitions in Costa Rica, Cayman Islands, and other regional markets.
“Operation real estate investment trust – that’s the mission,” Reid said. “The REIT model is working, and we’re going to keep pushing.”