KPREIT reports 8% increase in nine months net profit

November 10, 2022


Kingston Properties Limited reported a 12% increase in rental income to US$2.47 million (2021: US$2.20 million). For the quarter, rental income also rose by 12% to US$857,596 (2021: US$763,105).

Operating expenses rose 13% to US$1.09 million (2021: US$962,501).

As such, results of operating activities before other gains amounted to US$1.38 million (2021: US$1.24 million). While, for the quarter, it closed at US$500,905 (2021: US$374,032).

Gain on disposal of investment property totalled US$225,794 (2021: US$76,941).

Management fees rose 16% to US$63,106 (2021: US$54,323).

Miscellaneous income fell 46% to US$47,561 (2021: US$88,596). There were no impairment gain/loss on financial assets for the period (2021: loss of US$10,000).

Increase in fair value of other investments amounted to US$177,299 (2021: US$343,483).

Operating profit rose 6% to US$1.90 million (2021: US$1.79 million). For the quarter, it fell 13% to US$549,857 (2021: US$631,658).

Net finance costs closed at US$434,717 (2021: US$405,946). Of this, finance cost and finance income amounted to US$602,460 (2021: US$452,462) and US$167,743 (2021: US$46,516), respectively.

This resulted in a profit before taxation of US$1.46 million (US$1.39 million) For the quarter, it closed at US$378,882 (2021: US$433,700).

Tax charged amounted to US$15,590 (2021: US$38,848). This resulted in a net profit of US$1.45 million (2021: US$1.35 million). For the quarter, net profit amounted to US$363,395 (2021: US$420,674).

Moreover, total comprehensive income closed at US$1.45 million (2021: US$1.35 million).

Earnings per share (EPS) for the period amounted to US0.164 cents (2021: US0.199). For the quarter, EPS amounted to US0.04 cents (2021: US0.06 cents). The trailing twelve months EPS was US0.35 cents. The number of shares used in our calculations is 884,609,294. Notably, KPREIT stock price closes the trading period on November 9, 2022 at J$6.55 with a corresponding P/E ratio of 12.15 times.

Balance Sheet at a glance:-

As September 30, 2022, assets rose 20% to US$58.61 million (2021: US$49.02 million). The growth was mainly due to 92% increase in ‘Cash and cash equivalents’ which amounted to US$6.95 million (2021: US$3.61 million).

Shareholders’ equity closed at US$43.16 million (2021: US$30.96 million), resulting in book value per share of US$48.79 (2021: US$45.69).



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