Owners of property on the Llana Beach report have now started to receive their individual account statements including rental performance for the period up to 31st December 2021. This is a key moment and is evidence of the gradual emergence from the severe restrictions caused by Covid-19 and their impact on the holiday-makers, Tour Operators, Owners, Hotel Operators that form the key stakeholders in the TRG Resorts.
Every Owner, including every Fractional Owner, with TRG has their own property asset, and each one performs differently depending on a number of factors, including size and type of property, position on the Resort, demand by the Tour Operators and status of Beach Resort Management Fees. This means that no two Owners have the same result from this (or any period) and the choices of Owners in dealing with BRM Fees have an impact on the returns, so the results differ quite dramatically from Owner to Owner.
For those with ownership on Dunas a similar set of accounts will be communicated at the beginning of June.
Now is a good time to check that we have your correct contact details. If you are at all unsure - for example if you have receive no Sua Casa communications over there past few months, then please get in touch to update your details.
General Operational information
There are 2119 individual Owners at Llana Beach. Of these, 1,728 (81.5%) have properties or interests in properties that had at least 1 night of occupancy during the period and therefore earned Gross Rental Income. Some had very low occupancy and so the income did not cover all of the costs of operation, taxes and Beach Resort Management fees. In total 1345 Owners (63%) had enough occupancy to cover the costs in the same quarter.
Individual Owner Positions
During the pandemic we had to ask Owners to pay Beach Resort Management fees where they did not have rental income to cover it. While some Owners had worked with us to pay BRM Fees necessary to keep the resorts in some state of repair, many did not. As a consequence, we had to borrow funds from elsewhere to enable basic maintenance and preparation for the return of guests to the resorts which was necessary if properties were to rent successfully again after the pandemic. For those Owners that were not up to date with BRM Fees, we applied any overdue income from any rental that took place prior to the pandemic and any new income earned in the Q4 2021 to try to bring their accounts up to date. Only where owners had fully funded BRM Fees are we able to consider paying out rental income. Only 664 Llana Owners (31%) are in a position where their BRM Fees are now up to date at the end of March 2022, taking into account the results of Q4 2021.
Owners who have paid BRM Fees to help keep the resort in a state where it can be used again, are prioritised in the distribution of rental funds.
Key actions
A few actions for you to consider:
1. Keeping BRM payments up to date is in the interests of all Owners, and those that have worked with us to do that will now be beginning to see the benefits earlier, which seem fair. If your BRM Fees are overdue you may wish to consider bringing them up to date for April and May 2022.
2. As we expect continued improvement, we will not be proactively collecting BRM fees from June onwards from Owners directly. Therefore, any rental income payable after the 1st June 2022 will go towards bringing BRM accounts up to date.
3. As Owners overwhelmingly requested that income be paid to them or their pension accounts directly, all remittances going forward will follow this instruction.
4. Please make sure we have correct contact details for you on our system.
We expect to be communicating directly on Dunas accounts next month.
Should you have any questions, Sua Casa members will be able to get in touch via the website.