Kore US Reit 9M net property income rises 3% to US$63.1 million 

[SINGAPORE] The manager of Kore US Real Estate Investment Trust (Reit) on Tuesday (Oct 27) reported net property income (NPI) of US$63.1 million for the nine months ended Sep 30, up 3 per cent from US$61.3 million a year earlier.

Revenue was up 2.5 per cent at US$114.9 million, from US$112.1 million previously.

Adjusted NPI – which excludes non-cash straight-line rent, lease incentives and amortisation of leasing commissions that have no impact on distribution – rose 5.5 per cent to US$66.7 million, from US$63.2 million in the year-ago period.

The Reit’s manager attributed this rise to higher one-off termination fee income, other operating income and cash rental income. However, this was “partially offset” by higher repair, maintenance and utility expenses.

Finance and other trust expenses increased 5.4 per cent to US$26 million, from US$24.6 million a year earlier. This, the manager said, came on the back of higher finance costs.

Income available for distribution was flat year on year at US$30.4 million.

The manager expects Kore US Reit’s distribution per unit to “remain consistent” at US$0.004 for both the second half of 2026 and first half of 2027, subject to prevailing market and financing conditions and interest-rate movements.

“In the long term, (the Reit) aims to progressively increase the payout ratio towards a sustainable level, aligned with Kore’s portfolio performance,” it added.

Portfolio occupancy stood at 86.1 per cent as at Sep 30; portfolio rental reversion for Q3 increased 0.7 per cent year on year.

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The Reit has an occupancy target of at least 87 per cent by the end of FY2026.

Portfolio weighted average lease expiry by net lettable area (NLA) stood at 3.8 years. Kore US Reit has NLA of 4.8 million square feet across 13 freehold office buildings and business campuses.

Units of Kore US Reit closed flat at US$0.148 on Monday.