KPREIT to buy back its shares
Kingston Properties Limited, which trades under the symbol KPREIT, will reacquire up to one per cent of its issued shares over a two-year span. The company currently considers its shares undervalued.
The buy-back programme begins mid-May, after the roll-off of a 21-day period dating from April 22.
"The repurchase of the shares will be conducted on the open market through the company's stockbrokers," KPREIT said in a market filing. The company will buy the shares at prevailing market prices. Purchases will be financed from internal cash holdings.
KPREIT was listed in August 2008 as the pioneer and still the only REIT stock on the Jamaica Stock Exchange. Its shares currently trade at $6.50, but sold as high as $8 within the past year.
Kingston properties will buy back just under 1.61 million shares, which are currently worth $10.46 million based on the prevailing market price.
"The board of directors of KPREIT sees this use of capital as an opportunity to enhance shareholder value through the purchase, from time to time, of undervalued shares," its market filing said.
KPREIT consistently trades below its book value, implying the stock is undervalued.
The company previously bought back 428,500 KPREIT shares in 2014 at a cost of $3.2 million.