Kore manager sees silver lining in ‘minor’ Big Tech layoffs even as H2 DPU falls 12.6%

Jude Chan

Published Wed, Feb 1, 2023 · 07:01 PM

Keppel Pacific Oak US Reit's 105 Edgeview property (above) in Denver. The Reit posted H2 2022 DPU of US$0.0278, down 12.6 per cent from its DPU of US$0.0318 a year ago. PHOTO: KORE

THE manager of Keppel Pacific Oak US Reit (Kore) said large-scale layoffs amid a tech sector slowdown are not a major concern for its portfolio – and might even be viewed as “somewhat positive” for the US office-focused real estate investment trust (Reit).

“When you look at the layoffs for these companies in Bellevue and Redmond and compare that to what their hiring has been over the last several years, you will find that it has been just a fraction of what their hiring had been,” said David Snyder, chief executive of the Reit manager, at a briefing on Wednesday (Feb 1) following its FY2022 results announcement.

“These are very minor corrections that have been made,” he added.

Keppel Pacific Oak US Reit Financial results Spotlight