KPREIT Secures $700Mn in Financing From VMIL

• Kingston Properties Limited (KPREIT) has advised on new funding through Victoria Mutual Investments Limited (VMIL). It signed a $700Mn 13-month bridge loan which will be used to continue the expansion of its property portfolio. 
• This facility continues the series of fundraising exercises undertaken by the company to meet its strategic objective of increasing its equity to $10Bn and the footprint of properties under its ownership or management to one million square feet by 2023. 
• Kevin Richards, CEO, KPREIT said: “This round of financing will allow us to continue to expand our portfolio, mainly in the geographic regions that we have been operating in the last four years.” He added that the facility follows the Company’s 2019 rights issue, also brokered by VM Wealth Management, which raised $2Bn. 
• Richards further noted that the company is also looking to increase its investment in industrial properties over the next few years, in line with the growing logistics and E-commerce industry globally and will be exploring more value-added and greenfield projects in this space. KPREIT will also be broadening its reach in the US, particularly in States outside of the hurricane corridor and is currently at varying stages of execution of the deals in its pipeline. 
• KPREIT currently owns industrial, residential, office and retail properties in Jamaica, the US and the Cayman Islands. For the first quarter of 2021, it reported a 58% year on year increase in rental revenue to US$709,695 with net operating income (NOI) increasing by 123% to US$437,660, while net profit after tax (NPAT) increased to US$623,338 for the first quarter of 2021 compared to a loss of US$214,877 the prior year. 
• The company’s stock price has appreciated by 16.1% to $8.42 since the start of 2021, and currently trades at a P/B of 1.31x, which is above the main market real estate sector average of 0.97x.

(Source: JSE; NCBCM Research)