KPREIT reports 39% decline in year end profit

March 01, 2018

Kingston Properties Limited reported Rental Income of $196.32 million, 50.49% more than the $130.46 million reported for 2016. Property management fee of $7.96 million was reported for 2017 relative to none reported in 2016. There was no Other Income reported in 2017 and according to the company.

This resulted in a 56.59% increase in total revenues year over year to $204.28 million relative to $130.46 million reported the prior year.  For the fourth quarter the company reported total revenue of $49.65 million relative to (2016: $18.72 million).

Operating expenses grew by 26.52% to $124.33 million relative to the $98.26 million posted for the same period last year.

As such, Results of Operating activities before other gains amounted to $79.95 million, a 148.36% increase when compared to the $32.19 million posted last year.

Miscellaneous Income amounted to $904,145 (2016: $1.23 million).

Operating profit closed the year at $92.77 million, this compares with the $165.55 million booked a year ago. This was due to $119.94 million reported for  Fair value Gain on Investment Properties in the 2016 compared to $11.71 million booked for 2017.

Net finance costs closed at $42.09 million relative to Net finance income of $54,000 for the 2016 period. This led to a Profit before taxation of $50.68 million, compared to the  $164.24 million for  2016.

Tax credit for the year amounted to $28.48 million, resulting in Net Profit of $79.16 million relative to Net Profit of $129.92 million in the comparable period last year a 39.07% decline. For the fourth quarter the company recorded net profit of $55.86 million relative to the profit of $22.59 million reported in 2016.

Earnings per share amounted to $0.25 for the period relative to earnings per share of $0.40 in 2016.  While earnings per share for the quarter amounted to $0.17 relative to earnings per share of $0.07 in 2016. The number of shares used in our calculations is 321,992,668. Notably, KPREIT stock price close the trading period on February 28, 2018 at $6.65.

Balance Sheet at a glance:-

As December 31, 2017, assets totalled $2.56 billion, $398.39 million more than the $2.16 billion booked as at December 31, 2016.  The growth was due to  investment properties which amounted to $2.47 billion versus $1.90 billion at the end of the 2016.

Shareholder equity closed at $1.74 billion, up $13.26 million from last year’s $1.73 billion, resulting in book value per share of $5.40 (2016: $5.36).



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