Average occupancy remained strong at approximately 96%

Durrant Pate/Contributor

Kingston Properties closed out the second quarter of 2026 with rental income up and its United Kingdom portfolio playing a bigger role in group earnings, even as overall net profit fell short of last year’s mark.

Rental income for the quarter reached US$1.90 million, up 15.3% from US$1.65 million in the same period of 2025. Management attributed the gain to the December 2025 purchase of a third UK property, the Lakeview East asset in Dartford, along with rent increases in Jamaica meant to bring lease rates closer to market levels.

Occupancy across the portfolio averaged about 96% for the quarter. The company said it converted vacant space at its Harbour Centre building in Georgetown, Cayman Islands into office suites, and pushed to re-let empty units at its 591 Spanish Town Road property in Jamaica. Those efforts lifted overall occupancy by two percentage points.

Operating expenses rose to US$573,179 from US$486,041 a year earlier, which the company linked to the larger property base and the timing of certain costs. Net operating income still climbed to US$1.35 million from US$1.19 million, and the operating margin held near 70%.

Net profit for the six months ended June 30 came in below the 2025 figure, but the company said the comparison is misleading. The first quarter of 2025 included a fair value gain and a gain on the sale of an investment property, neither of which recurred in 2026. Funds From Operations, which strips out those one-time items, grew for both the quarter and the half year.

By market, Jamaica generated US$1.66 million in rental income over the six months, or 45% of the group total, up 21.5% from 2025. The Cayman Islands portfolio brought in US$1.27 million, a 4.1% increase. The UK portfolio produced US$791,394, up 78.5%, and now accounts for about 21% of group rental income, compared with roughly 15% a year ago.

Total assets stood at US$98.17 million as of June 30, up from US$88.84 million a year earlier and US$94.24 million at the end of 2025. The increase reflects the Dartford acquisition, ongoing spending on the Rousseau Road warehouse development in Jamaica, and a scheduled revaluation of several properties.

Investment properties and related deposits totalled roughly US$86.13 million, with another US$5.04 million classified as held for sale. Cash and equivalents rose to US$3.36 million, up from US$847,257 a year earlier and US$801,587 at the start of the year.

Looking ahead, management said it plans to pursue additional acquisitions that meet its yield targets, with particular interest in expanding the UK portfolio further. The company is also continuing construction on the Rousseau Road warehouse and looking to sell off non-core assets to redeploy capital elsewhere in the portfolio.