Kingston Properties secures higher rental rates at new properties


 

Kingston Properties Limited (KPREIT) for the  quarter ended March 31, 2025, reported higher core operating revenues and net income, with management noting that the strategic expansion of  the investment property portfolio and effective property management, have both contributed to higher rental rates and increased property values.

Profit after tax in Q1 2025 amounted to  US$1,001,437 million versus US$946,357 for the first quarter of 2024, representing an increase of 6 per cent YoY.

Funds from operations (FFO) for the first three months of the year moved to US$519,851 compared to US$336,081 for the same period in 2024, yielding growth in a key liquidity performance indicator, of approximately 55 per cent YOY.

 The addition of 2530 Aztec West Business Park in the UK and Duke Street buildings in Jamaica, along with improved rental rates on some properties across the portfolio, were reported as  the primary factors impacting the year over year growth in rental income.

Group operating expenses for 1Q2025, which includes administrative and property management expenses, increased to US $583,539 compared to US$389,089 in 2024.

This increase was attributed to higher staff costs, increased professional fees associated with the expansion of the UK portfolio, as well as broker fees and the legal cost of letting vacant spaces in Jamaica and Cayman Islands.

Results of operating activities before other income of US$799,769 for 1Q2025, reflects an 11 per cent improvement over the US$722,901 during the same prior year quarter. Additionally, having reclassified an asset for disposal, the company recognised a fair value gain of $371,908 during the period, resulting in Group operating profits of US$1.3 million for 1Q2025, which is slightly ahead of the same prior year period.

 Net Finance Cost (NFC) amounted to $392,597 compared to $332,551 in 1Q2024 due to the growth in  debt portfolio, which funded the increase in assets under management.

Following the  acquisitions of the Duke Street properties and Aztec West along with improvements in the fair value of assets at the end of FY2024, the Group acquired a second office building in Dorking Business Park, UK on March 31, 2025.

Consequently, the value of investment assets grew by 26 per cent YoY to $85.63 million versus the $67.99 million as of the corresponding date in 2024.

 Additionally, total assets under management grew by 24 per cent to $88.38 million compared to $71.55 million last year.

Cash holdings declined from US$2.45 million in prior year to US$1.35 million resulting from the deployment of cash into; the acquisition of income generating properties; upgrading existing assets and; mobilizing a greenfield development.

Information Source: Jamaica Stock Exchange.

Photo: Linkedin.com

Caribbean Money Daily

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