[SINGAPORE] Keppel Pacific Oak US Reit (Kore) posted a distributable income of US$9.6 million for its first quarter ended Mar 31, down 19.3 per cent from US$11.9 million in the previous corresponding period.
The US office-focused Reit blamed the decline on lower adjusted net property income (NPI), mostly as a result of lower rental income from higher free rents due to timing differences in various leases completed for the respective periods, said the real estate investment trust’s (Reit) manager in a business update on Thursday (Apr 17).
It posted a negative 3.6 per cent rental reversion for the quarter, mainly affected by a renewal at Bellevue Technology Centre, said the Reit’s manager. As at end-March, the Reit’s average leverage stood at 43.7 per cent.
No distribution was declared. Kore had announced previously 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 three months ended Mar 31, NPI rose to US$19.7 million, down 6.2 per cent from US$21 million before. Gross revenue slipped 0.5 per cent to US$36.9 million.
Kore’s performance had been sliding for some time with the challenging environment faced by the US office market. For H2 and the full year in 2024, its distributable income tumbled due to lower cash NPI and higher financing costs. Full-year 2024 distributable income was down 8.8 per cent to US$47.6 million.
Units of Kore ended 1.6 per cent or US$0.003 lower at US$0.182 on Wednesday.
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