Eppley sustaining earnings growth from its diversified business model

Positive outlook for 2026 with notable growth during Q1 with more to come

Durrant Pate/Contributor

Having successfully navigated a turbulent start to 2026, investment company Eppley is confident of sustaining its earnings due to the strength of its diversified business model during its first quarter, ended March 2026.

The strength of Eppley’s business is built on a diversified mix of lending, leasing, real estate, infrastructure, and asset management positions. Arising from this, the Board of Directors led by Charman of P.B. Scott and his cousin, Nicholas A. Scott, as his deputy, are optimistic for the rest of 2026 noting, “the operating environment will inevitably present challenges, but we face them from a position of strength, with a resilient balance sheet, a high-quality portfolio, and a team that has consistently demonstrated its ability to execute.”

Eppley manages a diversified proprietary investment portfolio of approximately $22.5 billion, reflecting a broad and well-structured mix of cash, operating leases, loans, receivables, and strategic holdings. Exposure is spread across mezzanine credit, real estate, infrastructure, and asset management activities, channelled through a combination of wholly owned subsidiaries, joint ventures, and associated companies. 

Underpinning this growth is a consistent and disciplined approach to capital allocation that prioritises deployment into higher-yielding opportunities without compromising credit standards or risk discipline. The result is a portfolio that has delivered improved overall returns while demonstrating the durability and resilience of our business through an increasingly complex operating landscape.

Profitability continues to rise

The company generated total net profits of $298 million for Q1 2026, relative to $247 million in the prior period, reflecting continued core earnings growth across the business. There was notable growth in assets under management (AUM), income, transaction fees, and operating lease income. 

AUM fees grew by J$20 million to J$155 million, driven largely by higher performance and management fees from its CMF II fund, with operating lease income showing a substantive increase, almost doubling for the period to reach J$44.5 million. Collectively, these revenue streams delivered gross investment income of $464 million vs $400 million in 2025, marking year-over-year growth and demonstrating the strength of the diversified business model. 

Interest expenses for the period were reduced to $156 million from J$167 million in2025, driven by amortisation and prudent debt management. This resulted in the company delivering robust Net Investment Income of $308 million. 

Administrative expenses rose to $145 million, due to general inflationary increases and costs relating to our new office space. 

Dividend

The Board of Directors approved a dividend of 10.2 cents per share payable on June 26, 2026, to ordinary shareholders on record as of June 12, 2026. The company expects to maintain its dividend policy in future periods, subject to the discretion of the Board of Directors. 

With a positive outlook ahead, the board and management are encouraged by the momentum across its business and the pipeline of opportunities available to the company. The strength of this platform is built on a diversified mix of lending, leasing, real estate, infrastructure, and asset management, which positions Eppley well to sustain earnings growth and continue delivering value to shareholders.

According to the board, “our priorities remain clear and focused on deploying capital into the most compelling opportunities, growing our third-party assets under management, and advancing the strategic initiatives that will define the next chapter of the company’s development. The operating environment will inevitably present challenges, but we face them from a position of strength, with a resilient balance sheet, a high-quality portfolio, and a team that has consistently demonstrated its ability to execute.”