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
1

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

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
3

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
4

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
5

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
6

Executive Director’s Report
7

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

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
9

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

ft II
Views from The Miami Loft II
11

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
12

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.
13

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

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
15

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
16

Overview – Investments & Operations
17

Overview – Investments
Market Analysis
Property Selection
Valuation Analysis
Deal Structuring
Transaction Closure
Investment
Committee
Board of
Directors
18

 Market Analysis
 Market reports
 Rent comparison

Sales comparison

Capitalization (yields)

Net Operating income trends
19

 Sample Market Report
 Trends and
Forecasts for
Rents
20

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)
21

 Property
Valuation & Analysis

Detailed modeling of cashflows by properties
 Return analysis
22

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


Property
Management
 Data collection and tracking
24


Property Management
 Efficient rent collection and processing
25


Property Management
 Tenant Screening and Selection
26


Property
Management
 Control of repair & maintenance expenses
 Reputable service partners
27

KPREIT
The source on real estate
28

 Financial Performance
29


Approx 80% of cash utilized for property purchase at
June 30th
 Revaluation of J$ in June qtr 2010 hurt results
Cash & cash equivalents
Deposit on Property
-------Year Ended---------6 Mths Ended
31-Dec-08 31-Dec-09 30-Jun-10
137,992
Property under construction 314,363
504,671
26,400
251,740
Investment Property
Other assets
Total Assets
79
452,434
1,712
532,783
413,499
7,278
672,517
 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
30

 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$
31

 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
32

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

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
34

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
35

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