KPREIT

New year, new dividends

March 7, 2014 by IC Insider.com

IC Insider’s tracking of the latest announcements on dividends for the New Year to February 28th 2014.

Sagicor Group ups dividend and approved the payment of an interim dividend of 35 per share payable on March 31, 2014 to shareholders on record as at March 21, 2014. The ex-dividend date is March 19, 2014. The company paid a dividend of 21 cents per share on October 31, 2013 and brought dividends paid in 2013 to 40 cents per share with a dividend of 19 cents per share paid on March 28, 2013. In 2012 the company paid two dividends of 28 cents each.

Jamaica Broilers Group has declared an interim dividend of 8 cents per share payable on April 9, 2014 to shareholders on record as at March 13. The ex-dividend date is March 11. The 2013 dividend represents an increase of 33.33 percent on the amount paid in 2012. The company paid an interim dividend of 6 cents per share on March 28, last year and 8 cents per share on December 2.

Pan-Jamaican Investment Trust will pay its first interim dividend for the year 2014 of 60 cents per share on March 31, 2014 to shareholders on record as at March 17, 2014. The ex-dividend date is March 13, 2014. Dividends per share paid in 2013 amounts to 45 cents on September 20, $1.10 in March and 50 cents on December 20.

Scotia Investments approved an interim dividend of 45 cents per stock unit, payable on April 10, 2014, to stockholders on record as at March 20, 2014. The company pays four dividends per annum and have paid 45 cents each for the prior four quarters

Scotia Group approved an interim dividend of 4o cents per stock unit, payable on April 10, 2014, to stockholders on record as at March 20, 2014. The company pays four dividends per annum and have paid 40 cents each for the prior four quarters.

Supreme Ventures declared a dividend of 3 cents per share payable on March 26, 2014 to shareholders on record as at March 12, 2014. The stock traded ex-dividend on March 10, 2014. The company paid a dividend of 3 cents per share on January 8, 2014. In 2013 dividends per share were paid as follows – 3 cents on September 2, 8 cents on June 17 and 10 cents on March 28.

Eppley Limited declared an ordinary interim dividend of $9 per share payable on February 28, 2014 to shareholders on record as at February 21, 2014. The ex-dividend date is February 19, 2014. This is the first dividend the company is paying on its ordinary shares since listing in 2013.

General Accident Insurance approved an ordinary dividend of 7.64 cents per stock unit payable on April 1, 2014, to shareholders on record as at March 6, 2014. The stock traded ex-dividend on March 3, 2014. General Accident Insurance paid an interim dividend of 8.728 cents per share on October 14, 2013 and also paid an interim dividend of 4.85 cents per share on March 28, 2013. In 2012 they made two payments of 4.85 cents each.

Dolphin ups dividend up 50% | Dolphin Cove has declared an interim dividend of $0.15 per share payable on April 9, 2014 to shareholders on record as at March 21, 2014. The ex-dividend date is March 19, 2014. Interim dividends were paid as follows by the company, 10 cents per share on December 4, 2013, 10 cents per share on September 16, 2013, 10 cents per share on June 6, 2013 and 10 in March 28 last year.

Gleaner Company declared an interim dividend of $0.04 per share payable on March 13, 2014 to shareholders on record as at February 27, 2013. The ex-dividend date is February 25, 2014.

PROVEN declared a dividend of US$0.0015 per ordinary share payable on March 13, 2014 to shareholders on record as at February 26, 2014. The ex-dividend date is February 24, 2014.

Carreras declared an interim dividend of $1.62 per share payable on March 13, 2014 to shareholders on record as at February 20, 2014. The ex-dividend date is February 18, 2014. This is the fourth regular dividend being paid for the year. An interim dividend of $1.30 per share and a special dividend of $0.94 per share were paid on June 20, 2013. Interim dividends of a dollar per share each were paid in August and November last year. A special capital cash distribution of $1.18 was also paid on January 30, 2014.

Cargo Handlers declared a dividend of 50 cents per share payable on March 6, 2014 to shareholders on record at February 18, 2014. The ex-dividend date is February 14, 2014. In 2013 ahead of the change in the tax rate on dividends from 5 percent to 15 percent the company paid a dividend of $1.00 per share on March 28, 2013.

AMG Packaging declared a dividend payment of 20 cents payable on March 28, 2014 to shareholders on record as at February 17, the Ex-dividend date is February 13. At the current stock price of $3.48 the yield is 5.7 percent. This is the first dividend the company has paid since listing in 2011.

The Board of Directors of Kingston Properties Limited has declared its first dividend for the year 2014 in the amount of US$0.0025 per stock unit payable on February 28, 2014 to stockholders on record as at February 10, 2014. The ex-dividend date is February 6, 2014.

Caribbean Producers (Jamaica) Limited | declared an interim dividend of 3 cents per stock unit payable on January 31, 2014 to shareholders on record as at January 16, 2014. The ex-dividend date is January 14, 2014. An interim dividend of 4.5 cents per stock unit was paid on March 28, 2013, previously an interim dividend of five cents per share paid on June 20, 2012.

Barita cuts dividend to 3 cents | Stung with a big drop in reported profits from $255 million in 2012 to only $70 million for the year ended September 2013, Barita Investments’ board approved the payment for an interim dividend of 3 cents per stock unit to be paid on January 27, 2014 to shareholders on record as at January 10, 2014. The ex-dividend date is January 8, 2014. In January 2013 a dividend of 11.4 cents per share was paid.

Dividends delayed | Sagicor Group has moved the dividend consideration from February 28 to March 6th.

Not announced | The Board of Caribbean Flavours and Fragrances who had indicated that they will consider a dividend declaration at a meeting to be held on February 5, 2014 has not yet reported the decision to the Jamaica Stock exchange nor has Jamaica Broilers who should have met on February 26.

The Board of Directors of Grace Kennedy will consider a resolution for the declaration of an interim dividend at a meeting to be held on Friday, February 28, 2014. Grace last paid an interim dividend of $0.70 per share paid on December 11, 2013, an interim dividend of $0.78 per share paid on September 30, 2013 and an interim dividend of 70 cents per stock unit was paid on March 27, 2013.

Filed Under: Company News, Dividends Tagged With: AMG Packaging, Barita Investments, Cargo Handlers, Caribbean Flavors, Caribbean Producers (CPJ), Carreras, Dividends, Dolphin Cove, Eppley, General Accident, Gleaner, Grace Kennedy, Jamaica Broilers, JSE Company, kp, KPREIT, NCB, Pan Jam, Proven, Sagicor, Scotia, Supreme Ventures

Sagicor offers shares in Real Estate X Fund

September 18, 2013 by IC Insider.com

Sagicor Real Estate X Fund is offering shares in an initial public offering (IPO) which opens on September 24, 2013 and will close on October 18, 2013. The offer is subject to the right of the Company to close the Subscription List at any time without notice if subscriptions have been received for the full amount of the shares available for subscription and also subject to the right of the Company to extend the closing beyond that date. The shares are expected to be listed on the Jamaica Stock Exchange.

A maximum 500,000,000 shares are available for subscription in this IPO with a minimum of 100 shares and in multiples of 100 shares. In the event that subscriptions or applications are received for more shares than the number of shares available for subscription and sale in this IPO, X FUND reserves the full, unqualified and absolute right to increase the number of shares in the IPO in order to satisfy all or part of the applications in excess of the 500,000,000 shares, which are comprised in the IPO but not exceeding a further 750,000,000 shares. Sagicor Jamaica and PIF have indicated that they jointly intend to exercise their options to buy shares at the IPO price with a view of holding up to 80% of the issued shares of X FUND.

The fund will invest in Sagicor real estate unit trust which holds the following properties in the fund: The R. Danny Williams Building (formerly Sagicor Centre in New Kingston), • 63-67 Knutsford Boulevard (New Kingston) • 78a Hagley Park Road (Kingston) • Sagicor Industrial Park (Marcus Garvey Drive Kingston), • Sagicor Industrial Park (Freeport, Montego Bay) • Sagicor Montego Bay Commercial Centre (Montego Bay) • Sagicor Industrial Park (Norman Road Kingston) • Spanish Town Shopping Centre (St Catherine) • 23-25 Seymour Avenue (Kingston) • Jewel Dunn’s River (St Ann) • Jewel Runaway Bay (St Ann) • Jewel Paradise Cove (St Ann).

The authorised capital of the Company is US$5,000,001,000. There is a Special Share which is held by Sagicor Jamaica, which the company sates is to ensure that the structure of the investment is not subverted by investors who may acquire substantial interest in the Company.

Sagicor Real Estate X Fund Limited (“X FUND”) is an International Business Company incorporated in Saint Lucia. Since its incorporation on May 31, 2011 it has not conducted any business on its own account other than to enter into certain agreements in anticipation of this IPO. The fund proposes to apply the proceeds of the IPO (“the IPO Proceeds”) to acquire other units in the Sigma Real Estate Portfolio. Pending investment of excess cash in units in the Sigma Real Estate Portfolio, the X FUND may invest in other assets including marketable securities. Thereafter the Company will carry on business as a passive investment holding company.

X Fund intends to distribute by way of dividends up to 85% of its annual net realised income.

The Articles of Incorporation of X FUND specifically authorises X FUND, from time to time, by a resolution of its directors, to issue additional shares in exchange for units in the Sigma Real Estate Portfolio. This will allow X FUND to purchase additional units from Sagicor Jamaica and/or PIF or direct from Sigma Real Estate Portfolio, without securing the approval of the shareholders in general meeting.

IC Insider call | Return on real estate in the form of income is low and growth in the value of the share price is unlikely to be rapid and may not show any growth in the short run. The fund provides a means of diversifying into the real estate market as well as in the tourism sector, but the latter can be great for a few years and not so great for some years.

This IPO is a real estate play that will not give investors the best return for their money. Investors will be buying shares at 100 percent book value with roughly a 4 percent yield in Year One. Meanwhile, the Pan Jamaican Investment Trust, which has real estate assets amounting to around 25 percent of total assets and generating a third of gross income from real estate, is selling at a huge discount to book value of $51 versus book of $78. Additionally, Pan Jamaican’s decision to invest in the new Marriott Kingston hotel, and no doubt with low interest rates, as well as other ventures into real estate developments, is likely to enhance the real estate portfolio over time. More importantly, the share price of Pan Jam stands a much greater chance of appreciation than a pure real estate fund.

The fact is that real estate does best when leveraged. Specifically, the Kingston Properties REIT is an excellent real estate play that could outperform the Sagicor Real Estate X Fund over time.

Filed Under: Company News, Initial Public Offers, Stock Market, TTSE Market Tagged With: JSE Company, KPREIT, Pan Jam, Sagicor

KPREIT a medium term investment

June 18, 2013 by IC Insider.com

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.

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.

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.