KPREIT reports first quarter net profit of US$836,255

May 17, 2023

Kingston Properties Limited, for the three months period, reported rental income of US$859,924 8% more than the US$797,770 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 4% to US$335,006 relative to the US$322,273 posted for the same period last year. According to KPREIT, “Higher insurance costs along with an increase in our staff complement, coupled with a reduction in direct property expenses from a reduced US condo portfolio resulted in this overall year-on-year increase in expenses.”

As such, results of operating activities before other gains amounted to US$524,918 approximately US$49,421 more when compared to the US$475,497 posted last year.

Profit before net finance charges amounted to US$998,718 (2022: US$915,345) for the three months ended March 31, 2023.

Net finance costs closed at US$166,455 relative to US$201,510 recorded for the three months period of 2022. Of this, finance income amounted to US$37,500 (2022: US$27,637), while finance cost totalled US$203,955 (2021: US$229,147).

This led to profit before taxation of US$832,263 compared to a profit of US$713,835 for the same period in 2022.

Tax credit for the period amounted to US$3,992 versus tax charge of US$2,444 in 2022, resulting in net profit of US$836,255 compared to a net profit of US$716,279 in the comparable period last year.

Total comprehensive income closed at US$836,255 versus total comprehensive profit of US$716,279 recorded twelve months earlier.

Earnings per share amounted to US0.0946 cents for the period relative to earnings per share of US0.0810 cents in 2022. The twelve months trailing earnings per share is US0.43 cents. The number of shares used in our calculations is 884,000,000 units. Notably, KPREIT stock price closed the trading period on May 16, 2023 at $7.20 with a corresponding P/E of 11.00 times.

Balance Sheet at a glance:-

As at March 31, 2023, total assets totalled US$61.22 million, 20% more than the US$50.95 million booked as at March 31, 2022. The growth was primarily due to an increase in ‘Cash and cash equivalent’ which closed at US$9.86 million (2022: US$3.05 million).

Shareholders’ equity closed at US$45.43 million, up from last year’s US$33.35 million, resulting in book value per share of US$0.51 (2022: US$0.38).


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.