KPREIT reports 72% decrease in year end net profit

March 02, 2021

Kingston Properties Limited, for the year ended December 31, 2020, reported Rental Income of USD$2.13 million, 26% more than the USD$1.69 million reported for 2019. Rental income for the fourth quarter amounted to USD$659,906 (2019: USD$427,249).

Operating expenses rose 8% to USD$1.10 million relative to the USD$1.02 million posted for the same period last year. Operating expenses for the fourth quarter amounted to USD$296,184 (2019: USD$284,338).

As such, Results of Operating activities before other gains amounted to USD$1.03 million, a 53% increase when compared to the USD$673,797 posted last year.

Fair value gain on investment property totalled USD$307,539 for the period relative to the previous year’s gain of USD$1.61 million.

Increase in fair value of other investments amounted to USD$85,219 (2019: nil).

Miscellaneous Income amounted to USD$3,136 (2019: USD$12,478). Impairment losses on financial assets amounted to USD$2,991 relative to USD$9,481 reported in the previous year. Management fees amounted to USD$69,673, 11% above 2019’s USD$62,994. Loss on disposal of investment property amounted to USD$78,392 (2019: USD$107,565).

Operating profit closed the year at USD$1.41 million, this compares with the USD$2.24 million booked a year ago. Operating profit for the fourth quarter amounted to USD$678,451 (2019: USD$1.80 million).

Net finance costs closed at USD$817,082 relative to net finance cost of USD$238,862 for the 2019-year end. Of this, finance cost and finance income amounted to USD$1.03 million (2019: USD$415,729) and USD$212,837 (2019: USD$176,867), respectively. This resulted in a profit before taxation of USD$597,347, compared to the profit before taxation of USD$1.99 million for 2019.

Tax credit for the year amounted to USD$15,378 (2019: USD$200,821), resulting in net profit of USD$612,725 relative to USD$2.20 million in the comparable period last year a 72% decrease.

Moreover, total comprehensive income for the year was USD $612,725 whereas total comprehensive income for FY2019 was USD$2.20 million.

Earnings per share amounted to USD$0.0009 for the period relative to earnings per share of USD$0.0032 in 2019. For the quarter ended December 31, 2020, EPS was USD$0.0008 (2019: USD $0.003). The number of shares used in our calculations is 677,712,399. Notably, KPREIT stock price close the trading period on March 01, 2021 at J$7.25 with a corresponding P/E of 56.21 times.

Balance Sheet at a glance:-

As December 31, 2020, assets totalled USD$45.60 million, 14% more than the USD$39.93 million booked as at December 31, 2019. The growth was mainly due to 59% increase in ‘Investment Properties’ which amounted to USD$38.13 million versus USD$23.94 million at the end of the 2019.

Shareholder equity closed at USD$30.52 million, up 1% from last year’s USD$30.31 million, resulting in book value per share of USD$0.045(2019: USD$0.045).

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