Keppel Pacific Oak US Reit raises H1 DPU by 1.9% to 3.16 US cents

Annabeth Leow
Published Mon, Jul 26, 2021 · 06:12 PM

OFFICE-FOCUSED Keppel Pacific Oak US Reit (KORE) on Monday announced a half-yearly distribution per unit (DPU) of 3.16 US cents, up from 3.10 US cents the year before.

This came from positive rental reversions and built-in rent increases, which lifted second-quarter distributable income to US$15.0 million for the three months to June 30; this is 2.1 per cent higher than a year ago.

Still, net property income fell 3.3 per cent to US$20.2 million, as gross revenue slid 3.9 per cent to US$33.8 million on a drop in car park income and recoverable expenses.

For the half-year, distributable income came in at US$29.9 million, higher by 2.8 per cent on the year prior. Net property income fell 3.1 per cent to US$40.6 million, and gross revenue was down by 3.0 per cent to US$68.4 million.

The real estate investment trust had an aggregate leverage of 37.1 per cent, while the weighted average term to maturity of its debt was 2.5 years.

Portfolio weighted average lease expiry by cash rental income was 3.5 years, while committed occupancy stood at 90.5 per cent as at end-June.

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Citing factors such as low taxes and above-average job growth, the manager said it is "proactively seeking expansion opportunities to expand and solidify its presence" in markets such as Atlanta, Dallas, Houston, Austin, Denver and Seattle.

KORE already focuses on tech-related office space, with the Seattle, Austin and Denver regions contributing more than half its net property income.

Books close on Aug 5 and unitholders will be paid on Sept 28.

Units last traded at US$0.785, up by half a US cent or 0.64 per cent, before the results.

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