Kore closes 4.2% down after hitting 4-month intraday high on H2 results, early resumption of distributions

[SINGAPORE] Units of Keppel Pacific Oak US Reit (Kore) rose in early trade on Tuesday (Feb 3) after the office-focused US Reit posted H2 earnings and announced that it is resuming distributions early.

They rose to an intraday high of US$0.26 as at 9.04 am, up by US$0.02 or 8.3 per cent, with some 3.8 million units changing hands. This marked the counter’s highest price in over four months as it last traded higher on Sep 15, 2025.

Kore closed Tuesday 4.2 per cent or S$0.01 lower at S$0.23, with more than 11.1 million units traded.

Early resumption of distributions

On Tuesday morning, Kore announced the early resumption of its distributions and posted a distribution per unit of US$0.0025 for the second half of the financial year ended Dec 31, 2025.

It previously declared a suspension of distributions from H2 FY2023 to H2 FY2025 as part of recapitalisation plans to address capital needs and leverage concerns. The manager noted that it plans to start with a “conservative payout ratio”, with the aim of increasing it to a “sustainable level aligned with long-term portfolio performance”.

This comes although the real estate investment trust’s distributable income fell 3.1 per cent to US$23.1 million for H2, from US$23.8 million in the previous corresponding period.

SEE ALSO

Kore resumes distribution; declares US$0.0025 DPU for H2 despite 3.1% drop in distributable income

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The lower distributable income came amid higher financing costs due to the expiration of interest rate swaps in 2025, but was partially offset by higher cash net property income (NPI), said the manager.

H2 revenue climbed 4.9 per cent to US$75.6 million and NPI increased 10.3 per cent to US$40 million. The improved revenue was attributed to higher other operating income and higher recoveries income due to the increase in recoverable property expenses, it added.