Transcript Chairman`s Opening Remarks

The Team
1.
Meeting Called to Order
2.
Notice of AGM
3.
Minutes of AGM 2008
4.
Chairman’s Opening Remarks
5.
Executive Director’s Report
6.
Q&A
7.
Audit Opinion (KPMG)
8.
Vote on Resolutions
9.
Adjournment
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Chairman’s Opening Remarks
 State of the company
Performance and accomplishments
 Opportunities and challenges for the
future
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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
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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
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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
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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
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Executive Director’s Report
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Executive Director’s Report
 Introduction of Team
 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
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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
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Miami Loft II – downtown Miami
Miami, Florida
Roof top swimming
pool
Club House
Lobby
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Views from The Miami Loft II
ft II
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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
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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.
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Local Jamaican Market
- Hagley Park Property
Waiting area
Front of building
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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
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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
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Overview – Investments & Operations
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Overview – Investments
Market Analysis
Property Selection
Valuation Analysis
Deal Structuring
Transaction Closure
Investment
Committee
Board of
Directors
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 Market Analysis
Market reports
Rent comparison
 Sales comparison
 Capitalization (yields)
 Net Operating income
trends
19
 Sample Market Report
 Trends and
Forecasts for
Rents
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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)
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 Property Valuation & Analysis
 Detailed modeling of cashflows by properties
 Return analysis
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 Property

Sourcing
Network of real estate professionals who
help us to spot opportunities
CVR Realty, USA
Marcus & Millichap, USA
Property Consultants Ltd
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 Property
Management
 Data collection and
tracking
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 Property Management
Efficient rent collection and
processing
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 Property
Management
 Tenant Screening and Selection
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 Property
Management
Control of repair &
maintenance expenses
Reputable service
partners
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KPREIT
The source
on real
estate
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 Financial Performance
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-------Year Ended---------6 Mths Ended
31-Dec-08 31-Dec-09
30-Jun-10
cash utilized for
property
Cash & cash equivalents
137,992
504,671
251,740
purchase at
Deposit on Property
26,400
June 30th
Property under construction
314,363
413,499
 Revaluation of J$ Investment Property
Other assets
79
1,712
7,278
in June qtr 2010
hurt results
Total Assets
452,434
532,783
672,517
 Approx 80% of
 Modest leverage
Liabilities
Current Liabilities
Non Current Liabilities
Shareholders Equity
Total Liabilities & Equity
1,837
450,597
452,434
29,977
4,262
498,544
532,783
180,000
4,375
488,142
672,517
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 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$
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 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
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 Stock Price Performance
 52-week H/L
$6.70
$3.80
 Reflect lag in profits and
dividends relative to peers
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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
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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
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Thank You
CLOSE OF MEETING
Please join the Directors & Management
for refreshments
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