West Hamilton Holdings Ltd lost millions of dollars in income in 2024 owing to the sale of some of its City properties.

For the year ending September 30, the company reported net operating income of $164,861 compared with $2,636,380 in 2023. Total revenue was also down $1,433,884, compared with $3,003,395 in 2023.

“The decrease was caused by the loss of rental revenue as a result of the sale of Belvedere Building and its parking garage at 69 Pitts Bay Road in Pembroke,” a spokesman for the company said.

Operating expenses increased 14.7 per cent because of the one-off selling cost of $500,000, relating to the sale of the properties. Interest expense decreased 31.7 per cent as a result of a significant pay-down of bank debt.

West Hamilton generated free cash of $22.99 million mostly from the sales proceeds. The cash was used mainly to pay down net borrowings of $4.45 million and pay dividends of $19.26 million to shareholders.

The income per share was $0.06 for the year compared with $1.76 per share in 2022. The book value per share decreased to $5.35 per share after the sale of the properties and a dividend of $6.75 per share paid to shareholders.

The company reported total shareholders’ equity at year end of $15.6 million (September 30, 2023: $35.4 million) a decrease of $19.8 million, which is approximately the same as the dividends paid to shareholders.

Current assets, which include cash and other assets that could readily be converted into cash, totalled $3 million on September 30. Total assets amounted to $20.2 million compared with $44.1 million at the end of last year.

On September 20, West Hamilton also entered into a sales agreement that will result in a 999-year lease of unit 2B located on the second floor of Belvedere Residences at 71A Pitts Bay Road.

The terms of the agreement include a full lease price of $2.3 million to be paid on completion date.

The net proceeds from the lease will be used to pay off the remaining loan balance with HSBC.

Their remaining property asset, Belvedere Residences, remains fully occupied with tenants on long-term leases. It is a mixed-use building housing nine executive condominiums, two of which have been sold, another under an agreement to lease for 999 years, a penthouse office suite and two ground floors occupied by a state-of-the-art gymnasium.

In September 2024, an independent property appraiser estimated Belvedere Residences to be worth $17.2, million, $200,000 more than its 2023 value.