• Kingston Properties Limited (KPREIT) completed the acquisition of its third property in the United Kingdom (UK) on December 24, 2025. The property, known as Lakeview East, is a 17,000 SF Grade A office building located within Crossways Business Park in Dartford, which is a premier commercial park on the immediate outskirts of London.
• The building boasts a strong energy performance rating, aligning with KPREIT’s Environment Social and Governance (ESG) objectives and its disciplined focus on acquiring high-quality assets that meet evolving sustainability standards. The property is leased to a global shipping conglomerate with total assets of £264Mn and a reported net income of £20Mn in 2024. They have been in continuous occupation since 2009.
• Dartford is located approximately 20 minutes outside of Central London and has experienced significant population growth over the last 15 years, ranking among the fastest growing towns in England. Crossways Business Park is a well-established mixed-use development featuring office, industrial, and distribution spaces, attracting a diverse range of businesses.
• This acquisition further strengthens KPREIT’s exposure to resilient commuter-belt office locations supported by robust infrastructure, a diversified employment base, strong fundamentals, and institutional-grade tenants. This property represents the company’s third UK-based acquisition, following the purchase of Aztec West Business Park in December 2024 and Dorking Business Park in March 2025.
• The transaction was funded through a mix of debt and equity, bringing KPREIT’s geographic distribution to: Jamaica (42%), Cayman Islands (39%), the UK (16%) and the US (3%).
• KPREIT’s stock price has decreased 0.4% since the start of the calendar year. The stock closed Monday’s trading session at $9.39 and currently trades at a P/E of 13.8x, which is above the Main Market Real Estate Sector Average of 8.6x

(Sources: JSE & NCBCM Research)

• VM Wealth Management Limited (VMWM), a subsidiary of VM Investments Limited, in its capacity as Lead Broker, announced that the Initial Public Offering (IPO) of Dequity Capital Management Limited (the Company) was closed on December 18, 2025. However, the Company has taken the decision not to proceed with the IPO, as the minimum subscription amount ($500Mn) required under the Prospectus was not achieved by the Closing Date.
• All subscription amounts paid by Applicants will be refunded in full, without interest, in accordance with the terms of the Prospectus. Refunds will be processed within ten (10) Business Days of the Closing Date, and will therefore be completed no later than January 6, 2026, using the same channels through which applications were submitted.
• The IPO opened on November 27 and closed on December 18, 2025. The offer represented $394.5Mn common shares to the general public at J$1.00 per common share, and $263.0Mn reserved shares being offered at J$1.00 for strategic investors.
• The proceeds were primarily intended to settle debt obligations, fund working capital management for investment purposes, and cover the invitation and listing expenses. The cancellation of the IPO leaves Dequity’s $600Mn debt obligation unaddressed.
• With the bond maturing in February 2027, the firm needs capital to ensure it can fulfil its upcoming secured debt commitments. Alternatively, the company could refinance this debt, which currently carries an interest rate of 13.0% per annum, thereby reducing finance costs and supporting future earnings.

(Sources: JSE & NCBCM Research)

• The Dominican peso is expected to weaken by a further 3.9% in 2026 to end the year at DOP66.5/1USD, after falling by nearly 6.0% in the year-to-mid-December. The peso's depreciation in 2025 exceeds both pre-pandemic and more recent depreciation trends, with the currency reaching its all-time weakest level in 2025.
• This weakness comes on the back of lacklustre domestic growth, projected at just 2.5% in 2025 compared to 5.0% in 2024, and a narrowing Dominican Republic-United States (U.S.) policy rate differential. The differential has fallen by 275 basis points (bps) since December 2023, reducing the attractiveness of peso-denominated assets and putting downward pressure on the peso.
• Furthermore, following below-trend growth in the first half of 2025 (H1 2025), high-frequency GDP prints point to continued economic weakness, with zero growth in October following month-on-month contractions in the previous two months. Notably, most of 2025's depreciation has occurred in the second half of the year, with the peso falling nearly 8.0% from July 1 to December 8, after briefly and sharply strengthening in the second quarter (Q2) against a weaker U.S. dollar amid the onset of the trade war.
• Looking ahead, BMI analysts expect the Dominican peso to continue to depreciate in 2026, driven by weakness in tourism, a structural goods deficit, and a persistently narrow Dominican-U.S. interest rate differential.
• The Dominican peso's strength is closely tied to the policy rate differential between the US Federal Reserve and the Banco Central de la República Dominicana (BCRD), with a 1.0 percentage point decrease in the Dominican-U.S. policy rate differential associated with a 0.76% depreciation of the Dominican peso.
• With the BCRD expected to cut its policy rate by an additional 50bps in 2026 to support a sputtering domestic economy, alongside an expected 50bps reduction in the US federal funds rate in 2026, BMI anticipates that a persistently narrow policy rate differential will continue to weigh on the currency in the near term. The interest rate differential is projected to remain at 125bps in 2026, the lowest on record, which will be a headwind for the peso.

(Source: BMI, A Fitch Solutions Company)

• Petronas has completed drilling the Caiman-1 exploration well in offshore Suriname, marking the first well in a four-well drilling campaign planned for Block 52 over 2025–2026. The well represents an important early milestone as Suriname pushes to translate offshore discoveries into commercial development.
• According to Suriname’s national oil company Staatsolie, the Caiman-1 well was spudded^[1] on July 21, 2025, and safely plugged and abandoned^[2] on December 6, 2025. The results were described as encouraging and will feed into further appraisal and development concept studies for Block 52.
• Caiman-1 was drilled in the western portion of Block 52, an offshore area covering around 4,750 square kilometres in water depths ranging from 60 to 1,000 meters. The block lies approximately 140 kilometres off Suriname’s coast and forms part of the rapidly emerging offshore Guyana-Suriname Basin, which has attracted growing international interest following a string of regional discoveries over recent years.
• Drilling operations were supported from Suriname, with materials, fuel, and provisions supplied locally from Paramaribo. Crew changes and personnel transport to and from the drilling unit were also conducted via Suriname, reinforcing local content participation and creating business opportunities for domestic suppliers and service companies.
• Block 52 is one of several offshore areas where Suriname is seeking to replicate the exploration success seen in neighbouring Guyana. Beyond Petronas’ activity, Staatsolie continues to expand its offshore portfolio through partnerships with international operators. In a separate block, Block 61, Staatsolie signed a production-sharing contract with Cairn Energy in 2018, under which Cairn committed to seismic surveys and future exploration drilling on the Demerara Plateau.
• With Caiman-1 completed and additional wells planned, Petronas’ Block 52 campaign is expected to play a key role in determining whether Suriname can move from exploration success toward a commercially viable offshore oil project, potentially transforming the country’s long-term energy and economic outlook.

(Source: Oil Price)

^[1] Spud refers to the early stages of drilling when rock, dirt, and other sedimentary materials are removed with a drill bit.

^[2] Plugging and Abandonment is the process of safely closing oil, gas, CO2, or water wells that are no longer in use

• Economists view Trump’s “One Big Beautiful Bill” tax package as a major driver of U.S. economic activity in 2026, with benefits flowing to both households and businesses through larger refunds, higher take-home pay and stronger investment incentives.
• The bill makes permanent the lower individual and corporate tax rates from the 2017 Tax Cuts and Jobs Act, extends the larger standard deduction, expands the alternative minimum tax exemption, and raises the estate tax exemption from $14 million to $15 million.
• Individuals receive temporary breaks including: tax exemptions on up to $25,000 in tipped income and up to $12,500 in overtime pay (phasing out above $150,000 income), a new deduction of up to $6,000 for seniors, expanded State and Local Tax (SALT) deductions to $40,000, and a tax break on up to $10,000 in auto-loan interest for U.S.-assembled vehicles, all generally through 2029.
• For businesses, the bill makes permanent lower corporate tax rates and restores full expensing for qualifying equipment, allowing companies to immediately deduct capital purchases instead of depreciating them over time.
• U.S.-based research and development spending becomes fully deductible, with small businesses allowed to retroactively expense R&D costs back to 2022, a provision many independent experts see as especially supportive of growth.
• Additional business incentives include loosening limits on interest deductibility (returning to an EBITDA-based cap including amortization) and expanding the 20% deduction for pass-through businesses such as restaurants, law firms, medical practices, hedge funds, and private-equity firms, though analysts remain divided on its growth effects.

(Source: Reuters)

• Trump’s April “Liberation Day” tariffs rattled the bond market and triggered a sharp selloff, forcing the administration to recalibrate its approach. Since then, officials have been carefully shaping both policy and messaging to avoid a repeat, though investors caution that the détente (the ease of tension) feels temporary rather than secure.
• The fragility became clear on Nov. 5, when Treasury signaled it might issue more long-dated debt on the same day the Supreme Court began hearing challenges to Trump’s tariff program. Benchmark 10-year yields jumped more than 6 bps, reflecting renewed anxiety about both higher future supply and uncertainty over a key source of government revenue.
• Already uneasy about persistent federal deficits, investors feared that additional long-term issuance would drive yields higher and increase borrowing costs. At the same time, the legal questions surrounding tariffs raised concerns about how reliably the government could service its US$30.0Tn market-held debt.
• Analysts described the moment as a “reality check,” highlighting an ongoing standoff between markets and policymakers. Beneath calm headline moves, investors are intensely focused on whether Washington can rein in deficits, or whether rising yields will be used to force fiscal discipline instead.
• Investors warn that multiple shock risks could reignite volatility: tariff-driven price pressures, a bursting AI-driven asset bubble, or a Federal Reserve forced into a hawkish pivot if inflation resurges. Any of these could quickly bring “bond vigilantes” back into action.
• Despite official reassurances, history shows bond markets can punish perceived fiscal excess. April’s surge in yields, the steepest weekly increase since 2001, pushed the administration to soften tariffs and demonstrated how quickly markets can reassert discipline. Yields have since retreated, volatility has fallen, and surface calm has returned. But investors emphasize that vigilance remains high, viewing today’s environment as a fragile balance rather than a durable peace.
• Part of the current stability reflects supportive conditions: AI-linked investment has buoyed growth, the Fed has shifted toward easing, and Treasury has shown reluctance to flood markets with longer-dated paper, signaling sensitivity to yield pressures.
• Ultimately, markets view today’s calm as conditional. The administration may have delayed a confrontation with bond vigilantes, but with large structural deficits and ongoing policy uncertainty, many investors believe the risk of renewed stress remains very much alive.

(Source: Reuters)

• In its December 2025 Quarterly Monetary Policy Report, the Bank of Jamaica (BOJ) communicated that it revised its inflation outlook upwards, amid an adverse agricultural supply shock from Hurricane Melissa, second-round effects on services (household maintenance, transport, energy, personal care) and processed food inflation, alongside stronger domestic demand tied to rebuilding and reconstruction activity.
• Average headline inflation is projected to rise to 7.4% over December 2025–September 2027, up from 4.9% over the previous eight quarters, breaching the Bank of Jamaica’s (BOJ’s) target range over the next year and peaking at 11.5% in the June 2026 quarter before easing back within target toward the end of the near term as supply conditions improve. The Comparative Core Inflation Forecasts (CPIAF) is similarly forecast to average 6.1%, higher than the 4.6% average over the prior two years.
• Imported inflation, notably from grains and oils, is expected to remain generally stable, while the first-round impact of higher U.S. tariffs is projected to be marginal, adding only approximately 0.1 percentage point on average to domestic inflation over the next eight quarters.
• Inflation expectations are projected to rise from 5.8% in the September survey to above the upper bound of the target range and remain elevated in the near term. The output gap is forecast to be negative in December 2025–March 2026, then turn positive as reconstruction, supported by an expansionary fiscal stance, gains momentum, with the gap closing by March 2029.
• S. demand is expected to soften with its output gap turning negative from June 2026 as oil prices are projected to decline by about 1.0% QoQ on average, U.S. LNG prices set to rise gradually, and freight costs have fallen sharply (-41.3% by September 2025). These are partly offsetting inflationary pressures amid reduced U.S. import demand due to higher tariffs.

(Source: Bank of Jamaica)

• Following damage assessments and the incorporation of the impact of Hurricane Melissa, which took time to assess, and following the economic and fiscal outlook in the government's budget update in December, S&P believes the likelihood of a rating upgrade for Jamaica within 12 months has become more remote.
• As a result, on December 18, 2025, it revised the outlook on Jamaica’s ratings to stable from positive. Following this, on December 22, 2025, TJH’s outlook was also revised downwards to stable from positive, reflecting that the sovereign continues to constrain TJH's credit profile. This is due to the project's significant exposure to regulatory risks and its inherent dependence on local economic conditions. The analysis incorporates stress testing, including scenarios involving a 100.0% currency depreciation, a 10.0% GDP contraction and a doubling of inflation to assess TJH's resilience.
• While a six-month cash-funded debt service reserve account provides a limited buffer, the assessment indicates that cash flows would likely be insufficient to fully cover debt payments in a sovereign default scenario. A sovereign stress could also restrict future tariff increases, potentially affecting the project's cash flow. Its 'a-' stand-alone credit profile (SACP) remains unchanged, reflecting TJH’s current operational strengths.
• The stable outlook on TJH aligns with the sovereign outlook, reflecting the view that TJH's performance is linked to Jamaica's broader economic stability. A gradual recovery in traffic volumes is anticipated following the disruption caused by Hurricane Melissa, driven by the reactivation of commercial activity and tourism throughout 2026.
• Beyond 2026, traffic growth is expected to track similar to Jamaica's GDP growth of approximately 2.0% per year, supporting the projection of a minimum DSCR consistently near 3.0x.

(Source: S&P Capital IQ)

• The Central Bank of The Bahamas, in its Monthly Economic and Financial Developments Report for November, reported a notable contraction in the country’s external reserves, reflecting heightened net foreign currency outflows through both the public and private sectors, even as domestic economic activity continued to expand at a moderated pace.
• According to the Central Bank, external reserves fell by $62.4Mn during November, compared with a $4.0Mn reduction in the same month of 2024. The decline was driven by a reversal in foreign currency flows between the Central Bank, commercial banks and their customers, alongside increased public sector-related outflows. Foreign currency transactions between the Central Bank and commercial banks shifted to a net outflow of $38.0Mn, from a net inflow of $9.0Mn a year earlier. At the same time, commercial banks’ transactions with their customers reversed to a net sale of $23.2Mn, compared with a net purchase of $20.1Mn in November 2024. In addition, net foreign currency outflows through the public sector increased to $36.4Mn, up from $11.9Mn in the prior year.
• The Central Bank also reported higher foreign currency sales under the exchange control regime. Provisional data indicated that foreign currency sales for current account transactions increased by $2.5Mn to $593.2Mn in November, relative to the same period last year. This increase was largely attributed to higher outflows for “other” current account transactions, primarily reflecting increased credit and debit card usage, which rose by $53.5Mn, as well as a $2.4Mn increase in transfer payments. These developments were partially offset by reduced outflows for factor income payments, which declined by $24.3Mn, along with lower payments for oil imports ($18.8Mn), non-oil imports ($8.4Mn), and travel-related expenses ($1.9Mn).
• Beyond the external sector, the Central Bank noted that economic activity during November continued to expand, though at a tempered pace relative to 2024, as key indicators converged closer to their medium-term potential. Tourism activity remained supportive of growth, with continued strength in the cruise segment. However, performance in the higher-value stopover segment remained constrained by limited accommodation capacity and softer demand from the United States market. As a result, tourism inflows, while still positive, grew at a more moderate rate.
• Labour market conditions showed further improvement, with the unemployment rate declining in the second quarter of 2025, supported by a reduction in the number of unemployed persons. Meanwhile, inflationary pressures eased, as average consumer prices recorded a marginal decline over the 12 months to July 2025, reversing the upward trend observed over the same period last year. This was mainly attributed to lower fuel and energy-related costs
• The Central Bank reported that banking sector liquidity increased further in November, despite domestic credit expansion outpacing deposit growth. Excess reserves rose by $44.6Mn to $1.95Bn, while excess liquid assets increased by $53.3Mn to $3.17Bn, underscoring the continued accommodative monetary environment. In its November report, the Central Bank concluded that while domestic economic conditions remain stable and supportive of growth, external sector pressures intensified during the month, underscoring the importance of continued monitoring of foreign currency flows as the economy transitions toward more sustainable, medium-term growth levels.

(Source: Eyewitness News)

• The Dominican government is preparing a set of administrative tax measures to boost revenue collection starting next year, without submitting new reforms to the National Congress. Finance Minister Magín Díaz explained that the strategy focuses on improving tax equity and ensuring fair competition by making the existing tax system more efficient through mechanisms already available to the Executive Branch.
• The measures, led mainly by the General Directorate of Internal Taxes (DGII) and the General Directorate of Customs, include expanding electronic invoicing, strengthening product traceability for alcohol and cigarettes, and reinforcing tax controls linked to new technologies. According to Díaz, these actions help reduce tax evasion and generate greater confidence in the private sector by ensuring all economic actors operate under the same rules.
• The minister acknowledged that while administrative measures are essential, they are not sufficient on their own to address structural fiscal deficits. He noted that tax regulations must be constantly updated, as taxpayers quickly adapt to changes. Once administrative management is further strengthened, the government could evaluate adjustments in other areas, including selective taxes that have not been updated in recent years.
• On the economic front, Díaz dismissed concerns about a currency crisis, highlighting that international reserves exceed US$14 billion, allowing the Central Bank to manage exchange rate volatility.
• He also emphasised strong coordination among state institutions on fiscal and monetary decisions, efforts to reactivate key sectors such as construction, and a significant reduction in fuel subsidies, supported by lower international oil prices. Through these actions, the government aims to balance public finances and maintain economic stability without introducing new legal tax reforms for now.

(Source: Dominican Today)