KPREIT reports year end net profit of USD$3.02 million

March 4, 2022

Kingston Properties Limited, for the year ended December 31, 2021, reported Rental Income of USD$2.98 million, 40% more than the USD$2.13 million reported for 2020. Rental income for the fourth quarter amounted to USD$781,197 (2020: USD$659,906).

Operating expenses rose 17% to USD$1.28 million relative to the USD$1.1 million posted for the same period last year. Operating expenses for the fourth quarter amounted to USD$320,507 (2020: USD$296,184).

As such, Results of Operating activities before other gains amounted to USD$1.70 million, a 65% increase when compared to the USD$1.03 million posted last year.

Fair value gain on investment property totalled USD$838,001 for the period relative to the previous year’s gain of USD$307,539.

Increase in fair value of other investments amounted to USD$534,553 (2020: USD$85,219).

Miscellaneous Income amounted to USD$71,318 (2020: USD$3,136). Impairment losses on financial assets amounted to USD$15,000 relative to USD$2,991 reported in the previous year. Management fees amounted to USD$76,117, 9% above 2020’s USD$69,673. Gain on disposal of investment property amounted to USD$246,386 relative to a loss of USD$78,392 booked in 2020.

Operating profit closed the year at USD$3.52 million, this compares with the USD$1.41 million booked a year ago. Operating profit for the fourth quarter amounted to USD$1.73 million (2020: USD$678,451).

Net finance costs closed at USD$425,557 relative to net finance cost of USD$817,082 for the 2020-year end. Of this, finance cost and finance income amounted to USD$574,543 million (2020: USD$1.03 million) and USD$148,986 (2020: USD$212,837), respectively. This resulted in a profit before taxation of USD$3.10 million, compared to the profit before taxation of USD$597,347 for 2020.

The tax charge for the year amounted to USD$78,566 (2020 credit: USD$15,378) resulting in a net profit of USD$3.02 million relative to USD$612,725 in the comparable period last year a 393% increase.

Moreover, total comprehensive income for the year was USD $3.02 million whereas total comprehensive income for FY2020 was USD$612,725.

Earnings per share amounted to USD$0.0045 for the period relative to earnings per share of USD$0.0009 in 2020. For the quarter ended December 31, 2021, EPS was USD$0.0025 (2020: USD $0.0008). The number of shares used in our calculations is 677,712,399. Notably, KPREIT stock price closed the trading period on March 03, 2022 at J$9.00 with a corresponding P/E of 13.03 times.

Balance Sheet at a glance:-

As at December 31, 2021, assets totalled USD$50.47 million, 11% more than the USD$45.60 million booked as at December 31, 2020. The growth was mainly due to an increase in ‘Investment Properties’, and an increase ‘Investment in real estate fund’, which increased by USD$3.65 million to USD$41.78 million in 2021 (2020: USD$38.13 million) and rose by USD$2.37 million to $3.45 million (2020: USD$1.09 million), respectively.

Shareholder equity closed at USD$32.63 million, up 7% from last year’s USD$30.52 million, resulting in book value per share of USD$0.048(2020: USD$0.045).


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