KPREIT reports 738% increase in year end net profit

March 02, 2020

Kingston Properties Limited reported Rental Income of USD$1.69 million, 7% more than the USD$1.57 million reported for 2018.

Operating expenses remained relatively constant at USD$1.02 million relative to the USD$1.02 million posted for the same period last year.

As such, Results of Operating activities before other gains amounted to USD$673,797, a 21% increase when compared to the USD$557,000 posted last year.

Fair value gain on investment property totalled USD$1.61 million for the period relative to the previous year’s loss of USD$32,536.

Miscellaneous Income amounted to USD$12,478 (2018: USD$3,806). Impairment losses on financial assets amounted to USD$9,481 relative to USD$11,194 reported in the previous year. Management fees amounted to USD$62,994, 63% above 2018’s USD$38,714. Loss on disposal of investment property amounted to USD$107,565 (2018: USD$361,798).

Operating profit closed the year at USD$2.24 million, this compares with the USD$193,992 booked a year ago.

Net finance costs closed at USD$238,862 relative to net finance cost of USD$261,150 for the 2018 year end. Of this, finance cost and finance income amounted to USD$415,729 (2018: USD$404,314) and USD$176,867 (2018: USD$143,164) respectively. This resulted in a profit before taxation of USD$2 million, compared to the loss before taxation of USD$67,158 for 2018.

Tax credit for the year amounted to USD$200,821 (2018: USD$329,546), resulting in net profit of USD$2.20 million relative to USD$262,388 in the comparable period last year a 738% increase. Moreover, Total comprehensive income for the year was USD $2.20 million whereas total comprehensive income for FY2018 was USD$257,259.

Earnings per share amounted to USD$0.0032 for the period relative to earnings per share of USD$0.0004 in 2018. The number of shares used in our calculations is 677,712,399. Notably, KPREIT stock price close the trading period on March 02, 2020 at J$6.08.

Balance Sheet at a glance:-

As December 31, 2019, assets totalled USD$39.93 million, 73%  more than the USD$23.06 million booked as at December 31, 2018. The growth was mainly due to 1386% increase in ‘Cash and Cash equivalents’ which amounted to USD$15.17 million versus USD$1.02 million at the end of the 2018.

Shareholder equity closed at USD$30.31 million, up USD$16.13 million from last year’s USD$14.17 million, resulting in book value per share of USD$0.04(2018: USD$0.02).