Pulse Investments Limited’s December 2025 second quarter reflected profits that leaned heavily on unrealised gains from property revaluations, and relatively thin cash generation.
That translated to net profit of $125.7 million for the quarter, which surpassed operating revenue of $34.7 million. That was due to revaluation gains of $107.7 million. A similar situation played out a year earlier, when profit totalled $174 million on revenue of $135.9 million.
Revaluation gains related to its ongoing real estate development at Villa Ronai carry no cash. CEO Safia Cooper says while cash flows may appear thin at this stage, they are expected to improve.
“Our current revenues are derived from property rentals and hospitality income, fashion and entertainment activities, and related ancillary services,” she said in a Financial Gleaner interview.
The cash picture adds further context. Cash on hand stood at $35.9 million at December 2025, down from $47.9 million a year earlier. Operating cash flow for the quarter stood at $1.8 million, down from $4.9 million a year earlier. Over the half-year it came to $3.07 million, compared with $22.2 million in the prior period – a steep drop that underscores how little of the reported profit is translating into liquidity.
Balance sheet readings reinforce the shift. Total assets edged up to $12.3 billion to December from $12.1 billion at June 2025, driven primarily by increases in investment property that mirror the fair value gain flowing through the income statement.
Shift
One strategic thread is clear: Pulse is shifting its income base away from legacy media and modelling lines towards property and hospitality, reflected in the dip in advertising entitlements. The company decided to stop recognising new advertising entitlements as revenue until monetisation is demonstrable – a line item that once towered over the income statement.
Cooper is nonetheless clear that modelling remains central to the brand.
“Our modelling portfolio remains important to the Pulse brand, and we have new initiatives planned to grow this area by the end of the year, including expanded market engagement and strategic partnerships,” Cooper said.
What earns Pulse money now is anchored in property. Rental income from its Trafalgar Road and Villa Ronai campus was the steadiest contributor in the current financial year. The company is doubling down on hospitality through its Pulse Boutique Hotels offering – upgrading rooms in New Kingston and repositioning Villa Ronai as an upscale resort and wellness destination. Those moves aim to convert the balance-sheet weight of investment property into recurring, cash-paying income rather than paper gains alone.
Debt
Borrowings total $811.2 million – a fraction of the $9.86 billion in capital at December – however, that equity largely comprises revaluation surpluses carried through to retained earnings. Cash and securities investments total less than $40 million.
neville.graham@gleanerjm.com
