KPREIT Acquires Second Property on Spanish Town Road

• KPREIT, on December 17, 2021, completed the acquisition of an approximately 2.7-acre property on Spanish Town Road with approximately 23,000 sqft of warehouse and office space to be leased. The property was acquired for a consideration of J$215.0Mn. 
• This marks KPREIT’s second property acquisition on Spanish Town Road, a main thoroughfare for the industry and commerce in Jamaica. It also marks the Group’s fourth acquisition for 2021. The thrust remains to acquire more properties in the industrial and warehousing space, against the background of growth in the e-commerce and logistics businesses over the last few years. 
• Additionally, on December 17, the Group disposed of the last unit held in the Loft II Condominiums in Miami, Florida. During the fourth quarter of 2021, a total of three (3) condo units at the Loft II were sold for a total consideration of US$888,000. The Miami Realtors Association reported that median sales prices for condos and townhouses in Miami-Dade and Broward counties increased by 22.0% and 21.0%, respectively, year on year (YoY) as at October 2021. 
• For the nine months ended September 30, 2021, KPREIT reported a 50% YoY increase in rental revenue to US$2.2Mn, while net profit amounted to approximately US$1.4Mn in 2021 versus a profit of US$70,154 in the prior year. A continuation in this trend of acquiring new property, particularly as the company seems to be strategically repositioning its real estate portfolio from residential to industrial real estate, will support this increasing trend in revenue and earnings, especially in the face of rising demand for industrial real estate.

(Sources: JSE News & NCBCM Research)