Rental income up 32% while core net earnings surges by 51%

Durrant Pate/ Contributor 

Kingston Properties Limited (KPREIT) experienced a strong start to its 2026 financial year, driven by growth in recurring rental income, improved operating efficiency, and continued expansion of its international real estate platform. 

For the three months ended March 31, 2026, rental income increased 31.7% year-over-year to US$1.82 million, up from US$1.38 million a year ago, supported by the expansion of its investment property portfolio and increased contributions from its United Kingdom (UK) assets. 

Funds From Operations (FFO), a key measure of underlying performance, grew 23.6% to approximately US$0.64 million, supported by a larger base of recurring rental income and disciplined cost management. The portfolio remained substantially leased at 98% occupancy.

Net profit for the quarter dipped to US$0.66 million, down from the even US$1 million made in Q1 2025, which benefited from one-off items such as fair value gains, property disposal gains, and a deferred tax benefit. Operating expenses increased modestly by 4.1% to US$0.61 million, contributing to an improved operating margin of 67% (Q1 2025: 58%). 

Clear strengthening of KPREIT

Chief Executive Officer, Kevin Richards hailed the positive performance saying, “the first quarter results demonstrate a clear strengthening of the Group’s underlying earnings profile with meaningful rental income growth, well controlled operating expenses, and a more visible contribution to the Group’s recurring results from our UK assets. Compared to last year, our Q1 2026 results were driven more directly by core rental performance and improved cash generation supported by active asset management portfolio wide. 

KPREIT remains focused on disciplined capital deployment into assets that can enhance income, support FFO growth and strengthen long-term shareholder returns sustainably. The management notes that the current period reflects a more sustainable earnings base derived from core operations and recurring rental income. 

Geographic diversification 

KPREIT’s geographic diversification continues to support performance, with rental income growth recorded across all markets. The UK segment delivered particularly strong results with rental income increasing to US$384,046 from US$144,757 in Q1 2025 (up over 165% year-over-year) and segment profit of US$309,376, compared with a loss of US$12,078 in the prior-year period. 

During the quarter, the real estate investment trust continued to actively manage its capital structure, including issuance of a 13-month unsecured bond to support liquidity. Shareholders also benefited from the declaration of an interim dividend, reflecting its commitment to consistent returns supported by improving cash flows. 

The stock price has seen a 27% increase year to date as at May 5 and a 60% improvement on the last APO price of J$7.50.

Positive outlook

Chief Financial Officer, Andray Francis comments, “KPREIT maintains a strong and flexible balance sheet, with total assets increasing to US$98.42 million and improved liquidity supported by cash balances of US$4.29 million. This positions the company well to pursue further growth opportunities while maintaining prudent capital management and improving our ability to increase dividend payments.”

Looking aheadKPREIT remains focused on expanding its portfolio of income-producing assets, particularly in the UK, where market conditions continue to present attractive acquisition opportunities. 

Strategic priorities for 2026 include capital recycling, portfolio enhancement, development completion, and continued growth in FFO to support long-term shareholder value.