Keppel Pacific Oak US REIT
SGX:CMOU
Keppel Pacific Oak US REIT
Keppel Pacific Oak US REIT is an investment holding company, which engages in the investment in a portfolio of income-producing commercial and real estate-related assets. The principal activity of the Trust is investment holding. The Trust and its subsidiaries own and invest, directly or indirectly, in a portfolio of income-producing office real, estate in the United States, as well as real estate-related assets. The Company’s portfolio comprises of approximately 13 office properties (the Properties) located in the United States across eight key growth markets, with an aggregate net lettable area of approximately 4,703,684 square feet. Its Properties include The Plaza Buildings, Bellevue Technology Center, The Westpark Portfolio, Great Hills Plaza, Westech 360, Westmoor Center, 1800 West Loop South, Bellaire Park, 125 John Carpenter (One Twenty-Five), Maitland Promenade I & II, Iron Point and Powers Ferry. The firm is managed by Keppel Pacific Oak US REIT Management Pte. Ltd.
Keppel Pacific Oak US REIT is an investment holding company, which engages in the investment in a portfolio of income-producing commercial and real estate-related assets. The principal activity of the Trust is investment holding. The Trust and its subsidiaries own and invest, directly or indirectly, in a portfolio of income-producing office real, estate in the United States, as well as real estate-related assets. The Company’s portfolio comprises of approximately 13 office properties (the Properties) located in the United States across eight key growth markets, with an aggregate net lettable area of approximately 4,703,684 square feet. Its Properties include The Plaza Buildings, Bellevue Technology Center, The Westpark Portfolio, Great Hills Plaza, Westech 360, Westmoor Center, 1800 West Loop South, Bellaire Park, 125 John Carpenter (One Twenty-Five), Maitland Promenade I & II, Iron Point and Powers Ferry. The firm is managed by Keppel Pacific Oak US REIT Management Pte. Ltd.
Financial Performance: Adjusted cash net property income and distributable income fell by 2% and 12.5% year-on-year, mainly due to divestments and higher financing costs.
Occupancy: Portfolio committed occupancy was 91.9% at the end of March 2023, but physical occupancy averaged around 64%.
Leasing Activity: 218,000 square feet were leased in the quarter, including a major expansion; excluding this, leasing was 2.5% of the portfolio.
Rent Reversion: Portfolio rent reversion was negative 6.5%, driven by one large lease at below in-place rent; excluding it, reversion was a positive 4.9%.
Balance Sheet: Aggregate leverage stood at 38.7% and interest coverage at 3.6x. No immediate refinancing needs until late 2024.
Capital Management: All-in average cost of debt rose to 3.96% due to Fed rate hikes, with 78% of loans hedged.
Outlook: Management does not expect material valuation declines or leverage breaching 45%, but gearing could approach 40% by year-end with planned capital spending.
