May 18, 2021
Kingston Properties Limited, for the three months period, reported rental income of US$709,695, 58% more than the US$450,080 reported in the previous corresponding period. KPREIT, “The higher year on year revenue was mainly due to (1) acquisition of new properties during the second half of 2020, (2) achieving full occupancy at our Grenada Crescent property in Jamaica and, (3) increases in rents at some of our properties.”
Operating expenses increased by 7% to US$272,035 relative to the US$253,659 posted for the same period last year. According to KPREIT, “the increase is mainly as a function of higher year over year direct property expenses such as insurance costs and repairs and maintenance, as well as administrative costs such as professional fees and staff costs.”
As such, results of operating activities before other gains amounted to US$437,660, approximately US$241,000 increase when compared to the US$196,421 posted last year.
Miscellaneous gain amounted to US$29,700 (2020: US$1,490). Management fees closed at US$20,680 (2020: US$15,770).
Profit before net finance charges amounted to US$672,271 (2020: US$216,163) for the three months ended March 31, 2021.
Net finance costs closed at US$46,54 relative to US$401,256 recorded for the 2020 three months period. Of this, finance income amounted to US$55,999 (2020: US$88,721), while Finance cost totalled US$102,535 (2020: US$489,977).
The Company reported that, “in 2020, net finance costs included foreign exchange losses, both realized and unrealized, totalling $379,026 arising from the translation of local currency balances held at the end of the reporting period. These prior period losses resulted from holding higher than normal local currency cash balances raised from our rights issue in the fourth quarter of 2019. Actual interest expenses year on year decreased by 21.0% despite higher loan balances in 2021. This was mainly due to the reduction of the Group’s borrowing costs on its debt in both Jamaica and the Cayman Islands.”
This led to profit before taxation of US$625,735 compared to a loss of US$185,093 for the same period in 2020.
Tax charges for the period amounted to US$2,398 versus tax charge of US$29,784 in 2020, resulting in net profit of US$623,735 compared to a net loss of US$214,877 in the comparable period last year.
Total comprehensive income closed at US$623,337 versus total comprehensive loss of US$214,877 recorded twelve months earlier.
Earnings per share amounted to US0.092 cents for the period relative to loss per share of US0.032 cents in 2020. The twelve months trailing earnings per share is US 0.214 cents. The number of shares used in our calculations is 677,712,399 units. Notably, KPREIT stock price close the trading period on May 17, 2021 at US$8.12 with a corresponding P/E of 26.03 times.
Balance Sheet at a glance:-
As at March 31, 2021, total assets totalled US$44.44 million, 13% more than the US$39.45 million booked as at March 31, 2020. The growth was due to increases in ‘Investment properties’ which closed at US$39.73 million (2020: US$23.94 million). KPREIT indicated, “during the review quarter, the Group acquired an office building in the New Kingston on a sale and leaseback agreement for a consideration of approximately $1.2 million. The property is slated for development in the future.” The movement was offset by a decline in ‘Cash and cash equivalents’ to US$2.28 million (2020: $15.32 million).
Shareholders’ equity closed at US$30.69 million, up from last year’s US$30.09 million, resulting in book value per share of US$0.05 (2020: US$0.04).
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