KPREIT reports 57% decline in year end net profit

Date: March 04, 2019

Kingston Properties Limited reported Rental Income of $204.08 million, 3.95% more than the $196.32 million reported for 2017.

Operating expenses grew by 6.88% to $132.88 million relative to the $124.33 million posted for the same period last year.

As such, Results of Operating activities before other gains amounted to $71.198 million, a 10.95% increase when compared to the $79.95 million posted last year.

Fair value loss on investment property totalled $4.30 million for the period relative to the previous year’s gain of $11.71 million.

Miscellaneous Income amounted to $493,317 (2017: $904,155).  Impairment losses  on financial assets amounted to $1.45 million relative to nill reported in the previous year. Property management fees amounted to $5.02 million 37% below 2017’s $7.96 million.

Operating profit closed the year at $24.03 million, this compares with the $92.77 million booked a year ago. This was due to of $46.93 million reported for  disposal of investment property in 2018 relative to nothing reported in the previous year.

Net finance costs closed at $51.40 million relative to Net finance cost of $42.09 million for the 2017 year end. This led to a loss before taxation of $8.81 million, compared to the  profit of $50.68 million for  2017.

Tax credit for the year amounted to $42.76 million (2017: $28.48 million), resulting in Net Profit of $33.94  million relative to $79.16 million in the comparable period last year a 57.13% decline.

Earnings per share amounted to $0.11 for the period relative to earnings per share of $0.25 in 2017. The number of shares used in our calculations is 321,992,668. Notably, KPREIT stock price close the trading period on March 04, 2019 at $6.00.

Balance Sheet at a glance:-

As December 31, 2018, assets totalled $2.91 billion, 14%  more than the $2.56 billion booked as at December 31, 2017.  The growth was due to  investment properties which amounted to $2.61 billion versus $2.47 billion at the end of the 2017.

Shareholder equity closed at $1.78 billion, up $40.42 million from last year’s $1.74 billion, resulting in book value per share of $5.53(2017: $5.40).

 

 

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2019-03-04T20:14:20-05:00