First Rock plans APO to fund property acquisitions

First Rock Real Estate Investments Ltd Group plans to raise funds through an additional public offering (APO) to acquire real estate and for working capital purposes, as the group pushes to grow recurring rental income.

"We're looking at debt financing, and we're also going to approach our shareholders at the company's AGM. With their vote, we'll be doing an APO," said Ryan Reid, executive chairman and co-founder of First Rock Group.

Group capital remained largely stable compared to year-earlier levels, but its cash and cash equivalents fell to roughly US$597,000 from US$1.72 million at December 2025, as the group deployed capital towards development activities.

An APO differs from an initial public offering in that it allows an already-listed company to issue new shares to the public after its market debut. Existing shareholders who do not participate risk having their ownership stake diluted, as the total share count increases.

Reid said the exact amount to be raised would be confirmed after the annual general meeting on June 23, when the board convenes to review the numbers. The APO forms one part of a broader financing package for the group worth US$25.8 billion in capital, or 1.5 per cent less than a year earlier. 

"At that time, we can review the numbers and confirm just how much we'll require from that aspect of the overall financing," Reid said.

The target properties are tenanted commercial facilities — a warehouse in Costa Rica and an office building in Martinique occupied by the territorial government.

"It's a large office building, which is occupied by the government of Martinique, that we're now pursuing aggressively," Reid said.

Rental income for the group rose to US$1.23 million for the year ended December 2025. For the three months ended March 31, 2026, rental income was roughly US$324,000, up 10 per cent from the corresponding period a year earlier.

"That's really in the push, to grow the rental income element of the business by acquiring these tenanted properties in these two jurisdictions," Reid said.

The group, which is listed on the Jamaica Stock Exchange, reported a net profit of US$3,327 for the full year ended December 2025, reversing a net loss of US$8.89 million the prior year. That recovery continued into the first quarter of 2026, with net profit of US$522,300, roughly in line with US$539,023 for the corresponding period a year earlier.

The group has roughly 286 million shares in issue. Its 10 largest shareholders at March 2026 were Joyce Chin and Bobby Chin with 6.77 per cent, JCSD Trustee Services Limited — Sigma Equity with 5.38 per cent, NMIA Airports Limited with 4.99 per cent, Airport Authority of Jamaica with 4.99 per cent, MF&G Asset Management Limited — Jamaica Investment Fund with 3.64 per cent, National Insurance Fund with 3.50 per cent, TJBK Investments Limited with 3.5 per cent, Sagicor Pooled Equity Fund with 3.09 per cent, PAM Pooled Equity Fund with 2.77 per cent, and Ryan Reid with 1.88 per cent.

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