Real Estate

(Photo: Facebook @kingstonproperties)

KPREIT shareholders approve APO offer

(Photo: Facebook @kingstonproperties)

Kingston Properties Limited (KPREIT) has advised that at its extraordinary general meeting on February 23, 2021, shareholders unanimously approved the doubling of the company’s authorised shares and also an additional public offer of common shares in the capital of the company.

The first order of business was approval of increase in shares from one billion to two billion units. The other resolution covered authorisation for the raising of additional capital for expansion via the offer of additional public shares. Shareholders approved both.

Pursuing new opportunities

Earlier this year, Kevin G Richards, chief executive officer of KPREIT, said the company plans to invest in warehousing and logistics in the future.

Kingston Properties CEO Kevin Richards (File photo)

“The pandemic has created paradigm shifts in the way businesses operate and will continue to quicken the pace of advancements in digital and other remote interaction. We continue to believe that we can ‘future-proof’ our operating model by focussing on warehousing and logistics assets,” he said then.

Richards said the company would be engaging in strategic partnerships to achieve core objectives of reaching JM$10 billion in equity and having 1,000,000 square feet of property under management or control by 2022. 

Additionally, he shared that the company would return to the capital markets this year to “take advantage of more attractive assets that meet our risk-adjusted return threshold”. 

The KPREIT CEO said the company decided at the onset of the pandemic, even in advance of any reported COVID-19 case in Jamaica, to focus on preserving cash.

Increased rentals, more acquisitions

“All of the attributes of a REIT are in our DNA, so we focussed on our ability to generate cash from operations, resulting in an 82 per cent year on year improvement in Funds From Operations (FFO).

For financial year 2020, the company experienced a 40 per cent improvement in rental revenue year-on-year (YOY) and greater efficiency from the deployment of the Group’s cash resources. As a result, net operating income (NOI) and EBITDA increased by 82 per cent and 67 per cent YOY respectively. 

KPREIT, he said, has maintained solid occupancy levels in excess of 90 per cent throughout the year, as well as a similar level of collections during the period. 

The company also acquired a fully tenanted office building in Georgetown, Cayman Islands and arranged financing for that acquisition in the midst of that jurisdiction’s lockdown. 

Harbour Centre in the Cayman Islands. (Photo contributed by Kingston Properties)

Additionally, it acquired an 88,000-square-foot, value-add industrial property close to the ports in Kingston, Jamaica. 

Notably, the CEO said, the company has also repriced the bulk of bank borrowings to rates from as low as 2.0 per cent per annum to just under 4.0 per cent per annum.  

It has also reduced its Miami condo portfolio further allowing it to eliminate debt with bankers in the US and increase cash holdings for new property acquisitions or distribution to shareholders.