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The Team

The Team. Meeting Called to Order Notice of AGM Minutes of AGM 2008 Chairman’s Opening Remarks Executive Director’s Report Q&A Audit Opinion (KPMG) 8. Vote on Resolutions 9. Adjournment. Chairman’s Opening Remarks State of the company Performance and accomplishments

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The Team

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Presentation Transcript

  1. The Team • Meeting Called to Order • Notice of AGM • Minutes of AGM 2008 • Chairman’s Opening Remarks • Executive Director’s Report • Q&A • Audit Opinion (KPMG) • 8. Vote on Resolutions • 9. Adjournment

  2. Chairman’s Opening Remarks • State of the company • Performance and accomplishments • Opportunities and challenges for the • future

  3. Chairman’s Opening Remarks • State of the company • Investment in quality well leased properties in Jamaica • and the US • Focus is on rental income, not development • Key features: 2 properties, total of 42,000 square feet • of space; valued at US$4.9 million; potential for capital appreciation • Quality tenants • Shareholders of KPREIT remain committed

  4. Chairman’s Opening Remarks • State of the company • Fully transitioned to being revenue generating • Strong balance sheet with limited leverage positions the Company to take advantage of opportunities for growth • Systems and processes in place to ensure operating efficiencies

  5. Chairman’s Opening Remarks • Performance and accomplishments • In 2009, made two dividend payments (June & December) putting the company among the 20 companies that paid dividends in 2009 • Full deployment of cash in properties is expected to lead to growing dividends

  6. Chairman’s Opening Remarks • Opportunities and challenges for the future • Global recovery which is underway is expected to remain fragile • Analysts forecast values at or near bottom in selected US Markets • Bank of Jamaica estimates growth of 0 – 1% for the local economy for fiscal 2010/11; positive GDP growth in the Sept 2010 quarter, first since Sept 2007 quarter • The company continues to effectively execute its business plan with its singular focus on investing in income producing real estate for the benefit of shareholders

  7. Executive Director’s Report

  8. Executive Director’s Report • IntroductionofTeam • Performance of Current Properties and Markets • Miami Loft II located at 133 NE 2nd Ave • Hagley Park Road • Overview of Investments & Operations • Financial Performance • Going forward

  9. Introduction of Team • Pierre Shirley – Business Development • Tatesha Robinson – Research Analyst • Accounting Partner • Offices: • Miramar, Florida • Kingston, Jamaica • Atlanta, Georgia • Audit Committee member - Mr. Mitchie Bell

  10. Miami Loft II – downtown Miami Miami, Florida Club House Roof top swimming Lobby pool

  11. Views from The Miami Loft II • ft II

  12. About The Miami Loft II • 18 units fully rented at market rates; 1 is on the market for rent • Occupied by young professionals • Miami metro rental market is one of the strongest in the • US • Rents increased 4% in the first five months of • the year • Occupancy rate for Miami was 95.1% in May • Year-to-date sales of condo units rose 33% in • June; however, prices not solidly firm yet • Sources: 1) Axiometrics Inc 2) Florida Association of Realtors

  13. Real Estate Opportunities in Intl Markets • United States • The economy is no longer in recession, but the recovery has been weak • Improved outlook in real estate markets • Prospects for more-attractive returns relative to other investment options.

  14. Local Jamaican Market - Hagley Park Property Waiting area Front of building

  15. Hagley Park Property • 100% leased to Diversey, a US based company with operations worldwide • Diversey, Inc. (parent) is a leading global provider of commercial cleaning, sanitation and hygiene solutions for businesses. • The property is approx 26,000 square feet of warehouse & office space in the heart of the auto center of Jamaica

  16. Overview - Jamaican Market • The contraction in the Jamaican economy • has negatively impacted real estate activity • Positive offsets • lower interest rates • Inflation is trending lower • BOJ forecasts positive GDP • growth in Sept 2010 quarter, • first since Sept 2007 quarter

  17. Overview – Investments & Operations

  18. Overview – Investments

  19. Market Analysis • Market reports • Rent comparison • Sales comparison • Capitalization (yields) • Net Operating income • trends

  20. Sample Market Report • Trends and • Forecasts for • Rents

  21. Property Selection • Established properties with track record • Income generating • Hard currency (USD, pounds, euro) • Yield (cap rates) - 9%+ • Potential for capital appreciation – 3% annually (USD)

  22. Property Valuation & Analysis • Detailed modeling of cashflows by properties • Return analysis

  23. Property Sourcing • Network of real estate professionals who • help us to spot opportunities • CVR Realty, USA • Marcus & Millichap, USA • Property Consultants Ltd

  24. Property • Management • Data collection and • tracking

  25. Property Management • Efficient rent collection and • processing

  26. Property Management • Tenant Screening and Selection

  27. Property • Management • Control of repair & • maintenance expenses • Reputable service • partners

  28. KPREIT • The source • on real • estate

  29. Financial Performance

  30. Approx 80% of • cash utilized for • property • purchase at • June 30th • Revaluation of J$ • in June qtr 2010 • hurt results • Modest leverage

  31. Income Statement • Transitioned to being revenue • generating • Still need to get fully invested • G • Give back of approx • 16% of FX gains • due to revaluation of J$

  32. Profit Performance • The numbers primarily reflect • Interest income • The impact of the movements • in the J$ (unrealized FX gains/losses) • Going forward, greater positive • impact from income from the • properties

  33. Stock Price Performance • 52-week H/L • $6.70 • $3.80 • Reflect lag in profits and • dividends relative to peers

  34. Looking Forward • We have 2 good deals on our balance sheet • Ferret out other good deals in markets with strong cashflow and good potential for capital appreciation • Explore joint- venture opportunities • Demonstrate Value Creation • Processes and disciplines are in place • Business strategy is clear and focused

  35. Corporate Governance & Regulatory Compliance • Committed to be at the standards prescribed in the PSOJ’s Corporate Governance code • Corporate disclosure • Investor Relations • Social responsibility • Board composition, function & structure • The JSE has stepped up its compliance procedures for listed companies • More aggressive fines and penalties for violations • Continuing the process of building-out the various pillars

  36. Thank You CLOSE OF MEETING Please join the Directors & Management for refreshments

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