May 10, 2022
Kingston Properties Limited, for the three months period, reported rental income of US$797,770, 12% more than the US$709,695 reported in the previous corresponding period. KPREIT noted, “The higher year on year figure was mainly due to achieving higher occupancy levels at our properties in Jamaica and the Cayman Islands, as well as increases in rents at some of our properties.”
Operating expenses increased by 18% to US$322,273 relative to the US$272,035 posted for the same period last year. According to KPREIT, “The increase is mainly as a function of higher year over year staff costs, due to the increase in our staff complement during the first quarter of 2022 and a one-off cost for real estate brokerage services.”
As such, results of operating activities before other gains amounted to US$475,497 approximately US$37,837 more when compared to the US$437,660 posted last year.
Miscellaneous gain amounted to US$16,629 (2021: US$29,700). Management fees closed at US$22,292 (2021: US$20,680).
Profit before net finance charges amounted to US$915,345 (2021: US$672,271) for the three months ended March 31, 2022.
Net finance costs closed at US$201,510 relative to US$46,536 recorded for the three months period of 2021. Of this, finance income amounted to US$27,637 (2021: US$55,999), while finance cost totalled US$229,147 (2021: US$102,535).
The Company reported that, “profit before net finance charges of $915,345 in the first quarter of 2022 compared with $672,272 in the same quarter in 2021, representing a 36.2% year on year increase. The Group disposed of a unit at the W Fort Lauderdale and reported a gain on disposal of $44,540. An increase in fair value of $356,387 was also recorded on the three remaining South Florida condo units that were re-classified as held for sale based on the receipt of firm offers.”
This led to profit before taxation of US$713,835 compared to a profit of US$625,735 for the same period in 2021.
Tax credit for the period amounted to US$2,444 versus tax charge of US$2,398 in 2021, resulting in net profit of US$716,279 compared to a net profit of US$623,337 in the comparable period last year.
Total comprehensive income closed at US$716,279 versus total comprehensive profit of US$623,337 recorded twelve months earlier.
Earnings per share amounted to US0.106 cents for the period relative to earnings per share of US0.092 cents in 2021. The twelve months trailing earnings per share is US0.45 cents. The number of shares used in our calculations is 677,712,399 units. Notably, KPREIT stock price close the trading period on May 10, 2022 at US$8.74 with a corresponding P/E of 19.62 times.
Balance Sheet at a glance:-
As at March 31, 2022, total assets totalled US$50.95 million, 15% more than the US$44.44 million booked as at March 31, 2021. The growth was primarily due to increase in ‘Land held for sale’ which closed at US$2.28 million (2021: nil ). The movement was offset by a decline in ‘Restricted Cash’ to US$1,969 (2021: $482,134).
Shareholders’ equity closed at US$33.35 million, up from last year’s US$30.69 million, resulting in book value per share of US$0.05 (2021: US$0.05).
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.