KPREIT buying new commercial property
Kingston Properties Limited (KPREIT), a real estate investment trust that invests in properties locally and overseas, plans to increase its real estate holdings in Jamaica within the second half of this year.
This will likely push its holdings beyond $2 billion.
The company plans to acquire a commercial property "fairly imminently," said KPREIT Chairman Garfield Sinclair.
The acquisition would increase its commercial real estate holdings to two buildings in Jamaica. All its real estate in the United States consist of residential properties.
Kingston Properties' real-estate investment holdings are now valued at $1.9 billion, compared to $965 million a year earlier, boosted by new acquisitions. Its total assets amounted to $2.2 billion in June.
"KPREIT plans to increase leverage to facilitate further property acquisitions during the second half of the year," said Sinclair in a statement prefacing the company's June quarter financials.
The real estate company made net profit of $26.7 million in the quarter, which reversed its $57 million net loss a year earlier. The turnaround was due to higher revenue and lower operating and administrative costs, the company said.
Over six months, the company made $117 million in net profit, which reversed $46.6 million of losses. The northward shift was due to a gain on the disposal of investment property valued at $116 million, which augmented the $76 million of revenue inflows during the six-month period.
"The group achieved growth in its contractual revenues through increased rentals and in its asset values by way of acquisitions and revaluations," said Kingston Properties in its quarterly financials.