Kore’s distribution halt reflects Reits’ ‘original sin’ of needing constant access to capital to exist
Every Reit has a certain amount of debt that is refinanced from time to time, creating the risk of it being caught with too much leverage when market conditions weaken
Add BT as a preferred source
THE frightening thing about Keppel Pacific Oak US Reit (Kore) suspending its distributions last week is that doing so was deemed necessary despite its relatively good operational performance.
For 2023, Kore reported a 1.9 per cent rise in revenue to US$150.8 million and a 2.2 per cent increase in net property income (NPI) to US$86.1 million.
Income available for distribution fell 13.8 per cent to US$52.2 million, though. The decline was partly attributable to higher financing costs, and partly to Kore’s manager receiving its base fee for the first quarter of 2022 in units rather than cash.
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
New EC rules to cool prices: MOP doubled to curb flipping, no more deferred payments and more units for first-timers
Singapore Instagram seller must pay Louis Vuitton S$510,000 in damages over counterfeit goods case
Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why
