Dividends galore coming

December 19, 2013 by

It should be a Merry Christmas for investors in the companies listed on the Jamaica Stock Exchange as several companies have either announced dividend payments or have announced plans to make one.

Sagicor Investments Jamaica Limited declared an interim dividend in the amount of 91 cents per stock unit payable on January 28, 2014 to stockholders on record as at January 7, the ex-dividend date of January 3. The company paid an interim dividend of 12 cents per stock unit on October 31, 2013 and 48 cents per stock unit on March 27, 2013. In 2012, Sagicor paid a dividend of 57 cents per stock unit on October 29, 2012 to stockholders and 74.3 cents per stock unit on April 27, 2012.

Jamaica Producers Group Limited has declared an interim dividend of $0.20 per share payable on January 28, 2014 to shareholders on record as at December 31. The ex-dividend date is December 27.

Supreme Ventures Limited has declared a dividend of $0.03 per share payable on January 8, 2014 to shareholders on record as at December 20. The ex-dividend date is December 18.

Jamaica Public Service Company Limited has declared quarterly preference share dividends payable on December 31, 2013 to shareholders on record as at December 13, as follows:

  • JPS 5% “C” – $0.025 per share, JPS 5% “D” – $0.025 per share, JPS 6% “E” – $0.030 per share
  • JPS 7% “B” – $0.035 per share. The ex-dividend date is December 11, 2013.

FirstCaribbean International Bank Limited declared a final dividend for the year ended October 31, 2013 of US$0.015 per share payable on January 30, 2014 to shareholders on record as at December 19. The ex-dividend date is December 17.

Kingston Wharves has declared an interim dividend of 8 cents per share payable on December 20, 2013 to shareholders on record as at December 13. The ex-dividend date is December 11. This brings the payment for 2013 to 16 cents per share compared with 12 cents in 2012. The company paid a final dividend of 2 cents per share in respect of the financial year ended December 2012 and an interim dividend of 8 cents per share in respect of the current year, on Thursday, March 28.  On December 21st last year, a dividend of 10 cents per share was paid.

Hardware & Lumber declared an interim dividend for the year 2013 of 30 cents per stock unit payable on January 17, 2014 to stockholders on record as at December 20. The ex-dividend date is December 18, 2013. The company last paid a dividend of 12.5 cents per stock unit on January 31, 2013.

The Board of Directors of  Scotia Group Jamaica announced a final dividend of 40 cents per stock unit payable on January 13, 2014, to stockholders on record at December 18, 2013. Scotia Investments also declared a final dividend of 45 cents payable on January 13 next year. Both companies have been paying 40 and 45 cents per share from the last quarter of 2012.

Salada Foods Jamaica declared a dividend of 40 cents per share payable on December 19, 2013 to shareholders on record as at December 3. The ex-dividend date is November 29, 2013. The company last paid a dividend of 40 cents per share on January 8, 2013.

Paramount Trading declared an interim dividend of 13.5 cents per share payable on December 10, 2013 to shareholders on record as at November 29. The ex-dividend date is November.

Lasco Distributors is to pay an interim dividend of 2.3 cents per share payable on December 10, 2013 to shareholders on record at November. The ex-dividend date is November 22. The last dividend paid was of $0.25 per share payable on July 31, 2012 based on the number of shares in existence then in June this year the company split the stock into 10 shares for each one already issued..

Jamaica Money Market Brokers declared a 16 cents per share dividend payable on December 18, 2013 to shareholders on record on November 27. The ex-dividend date is November 25. This is a 23% increase over the prior period. The last dividend paid was 10 cents per share on March 28, 2013. Last year December a dividend of 13 cents per ordinary share was paid.

Pan-Jamaican Investment Trust declared a third interim dividend of 50 cents per share payable on December 20, 2013 to shareholders on record as at November 27. The ex-dividend date is November 25. PJAM paid 45 cents on September 20, $1.10 on March 25, and 55 cents on December 20 last year.

Carreras declared an interim dividend of $1.00 per share payable on December 11, 2013 to shareholders on record as at November 20, 2013. The ex-dividend date is November18, 2013. The company last paid a dividend of a similar amount in August. The amounts represent a cut from $1.50 that investors had become accustomed to.  A slide in profits from a drop in sales have resulted in the cut.

Grace Kennedy declared an interim dividend of $0.70 per share payable on December 11, 2013 to shareholders on record as at November 22, 2013. The ex-dividend date is November 20, 2013.

Proven Investments declared a dividend of US$0.0022 per ordinary share payable on December 3, 2013 to shareholders on record at November 19, 2013. The ex-dividend date is November 15, 2013. The also declared a preference share dividend of $0.10 per share payable on December 23, 2013 to shareholders on record as at December 9, 2013. The ex-dividend date is December 5, 2013.

Dolphin Cove declared an interim dividend of $0.10 per share payable on December 4, 2013 to shareholders on record as at November 15, 2013. The ex-dividend date is November 13, 2013.

Dividends for consideration | The Board of Directors of Barita Investments Limited will consider (and if thought fit), recommend the payment of an interim dividend for the financial year ended September 30, 2013 at a meeting to be held on Friday, December 20, 2013.

The Board of Directors of Caribbean Producers Jamaica Limited will consider a dividend payment at a meeting to be held on Monday, December 23, 2013.

AMG Packaging & Paper Company will consider the payment of an interim dividend at a meeting scheduled for Tuesday, January 7, 2014.

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KPREIT a medium term investment

June 18, 2013 by

Funding an operation with low interest rate foreign currency loans while the home based currency is weak can prove costly, and the way the accounting profession treats the changes in currency movement can mean profit or loss at least in the short term. That is what’s happening to  Kingston Properties Real Estate Investment Trust (KPREIT) in the latest results to March this year. Revenue was up 13 percent but profit plummeted to a loss, thanks to a foreign exchange loss of $14.5 million incurred in the quarter. The company recorded a net loss of $7.2 million after a tax credit of $3.56 million, but total group comprehensive income was $15.2 million, an increase of 144.8% versus $6.2 million reported for the quarter ended March, 2012.

Revenues | Revenues climbed to $23.5 million in the 2013 quarter up from $20.8 million in 2012. This reflects primarily rental increase for existing tenants and a stronger rental market for new tenants especially at the Loft II in Miami, the company’s management reported.

Group operating expenses, consisting of direct property expenses and administrative costs, were $14.8 million, versus $10.3 million for the similar period a year ago. Direct property expenses include insurance, property taxes, homeowners’ association (HOA) fees, broker fees and repairs & maintenance. These represented 60.4% of operating expenses for the March 2013 quarter versus 58.4% for the similar period last year. Increase in direct property expenses accounted for approximately $2.9 million of the $4.5 million increase in overall operating expenses. The major contributors were repairs & maintenance, HOA fees and property taxes.

KingstonProperitesREIT_logo130X140Group finance costs were $19.6 million for the quarter compared with $7.4 million for the similar period in 2012. These amounts include unrealized losses of $14.3 million and $2.5 million respectively, due to foreign currency translation losses resulting from the devaluation of the Jamaican dollar.

Balance Sheet | Significant balance sheet assets are Investment Properties of $850 million at the end of the quarter versus $641.4 million at March, 2012 and cash & cash equivalent of $195 million compared with $185.3 million for the similar period last year.

The primary drivers of the increase in the investment properties were fair value gains of $166.3 million on the Red Hills Road property and positive currency impact of $30.3 million on the Miami residential condominiums. Included in cash and cash equivalent is restricted amounts of $168.1 million.

Total group liabilities were $350.3 million at March, 2013 versus $331.5 million at March 31, 2012. These amounts include current and non-current loans payable at the end of the quarter of $325.1 million and $305.2 respectively. The liabilities are primarily mortgage loans. The devaluation of the Jamaican dollar resulted in an increase in the loans which are quoted in the United States dollar and amounted to US$3.4 million at end of March 2013 versus US$3.6 million at end of March 2012.

Cash flow | Net cash provided by operations was $23.9 million for the quarter versus $22.7 million for the similar period last year. A dividend was paid in the March 2013 quarter amounting to $9.9 million, a 63.1% increase over the $6.1 million paid in the March 2012 quarter.

Long term pay-off | Real estate investment is not a good cash generator at least not in the early stage of the investment. By its very nature, the level of income to be made in the short term will be limited. One strategy the company has is the investment in the apartments in Florida that could be disposed of when that market fully recovers and therefore provide cash flow for distribution or capital for expansion. Investors in the stock are likely to have to wait for a while for a big pay day. Nevertheless the stock provides a option to diversify ones investments.

Filed Under: Company News, Company Results Tagged With: , ,

FX rate change hits Kingston Profits

May 16, 2013 by

Kingston Properties is reporting lower profits in the March quarter this year compared to last year. Not only are profits lower, there was a significant hit from financing costs, caused by foreign exchange losses on loans denominated in US dollars due to slippage of the Jamaican dollar during the quarter. The company reported a loss of $10.8 million before foreign exchange loss and after a tax credit, the loss was down to $7.2 million. In the similar quarter last year the company reported a profit of $3.2 million before tax and $2.45 million after tax.  Other Comprehensive amounting to $22.5 million resulting from translation gain on the operations resulted in a positive picture at the end of the day ,with Comprehensive Income being $15.44 million. In 2012, the company reported Comprehensive Income of $6.2 million.

Income | Rental revenue for the quarter was $21.86 million, a 14 percent move from $19.1 million in 2012 but operating expenses climbed by 44 percent, much faster than income to $14.8 million. Management states that indirect property expenses accounted for approximately $2.9 million of the $4.5 million increase in overall operating expenses, with the major contributors being repairs and maintenance, home owners’ association fees and property taxes.

Group finance costs were $19.6 million for the quarter compared with $7.4 Million for the similar period in 2012.These amounts include unrealized losses of $14.3 million and $2.5 million respectively, due to foreign currency translation losses resulting from the devaluation of the Jamaican dollar.

KingstonProperitesREIT_logo130X140At the end of the quarter, Investment Properties were $850 million, an increase of $641.4 million over the 2012 first quarter. Fair value gains of $166.3 million on the Red Hills Road property and positive currency impact of $30.3 million on the Miami residential condominiums, accounted for the increase in property values. 

Cash and equivalent amounted to $200 million of which $168.1 million is restricted amounts.

Assets & Loans Concerns | Group liabilities were $350.3 million at the end of March, including current and long term loans payable of $325 million of which $186 million in payable within twelve months. Although the company has enough cash to meet this year’s pay out, the real concern is that the amounts to be paid over the life of all the loans is, in the short run, not being supported by cash flow. The quarterly report did not address this issue.

Funding options | In its annual report to shareholders, the company stated that they have a number of options to raise funds, these include:

  • Convertible bond, with incentives for holders to convert to equity
  • Secured bond with first claim on the property
  • Equity capital; preferred, common
  • Other types of instruments based on investor preferences and objectives

Property holdings | Kingston Properties holds a portfolio of 89,957 square feet of property consisting of a fully tenanted office/warehouse building of approximately 26,000 square feet located on Hagley Park Road in Kingston, Jamaica and 19 condominium apartments in downtown Miami.

The company discloses that it has been evaluating doing transactions in the affordable segment of the local residential market with the goal of  providing a housing solution for the large group of buyers with steady income who are looking for units priced below $7 million. Finished homes will be in the range of 800 square feet at a minimum, allowing most home buyers a comfortable unit size without the immediate desire for expansion.

Filed Under: Company News, Company Results Tagged With: ,