The decline is mainly due to lower cash net property income and higher other trust expenses
[SINGAPORE] Keppel Pacific Oak US Reit (Kore) posted a distributable income of US$19.9 million for its first half of the financial year ended Jun 30, down 16.2 per cent from US$23.8 million in the previous corresponding period.
The US office-focused real estate investment trust (Reit) blamed lower cash net property income (NPI) and higher other trust expenses for the drop in distributable income, said its manager in a business update on Tuesday (Jul 29).
It posted a positive 0.5 per cent rental reversion for the half.
As at end-June, the Reit’s average leverage stood at 43.7 per cent.
No distribution was declared. The manager had previously said it would suspend distributions for two years from H2 FY2023 to H2 FY2025 as part of recapitalisation plans to address capital needs and leverage concerns.
For the first half of FY2025, NPI was at US$40.7 million, down 3.2 per cent from US$42 million before.
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Gross revenue rose 0.2 per cent to US$74.6 million.
The Reit’s buildings and business campuses in the tech hubs of Bellevue, Redmond, Austin and Denver contribute to about 65.9 per cent of its NPI.
The weighted average term to maturity of its debt was 2.0 years, said the manager.
Additionally, its full portfolio weighted average lease expiry by net lettable area was 3.5 years.
Kore’s performance had been sliding for some time with the challenging environment faced by the US office market.
It posted a 19.3 per cent drop in distributable income in the first quarter of 2025 compared to the first quarter in 2024. In 2024, for H2 and the full year, its distributable income tumbled due to lower cash NPI and higher financing costs.
Units of Kore ended 2.2 per cent or US$0.005 higher at US$0.230 on Monday.
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