SINGAPORE (July 16): The manager of Keppel-KBS US REIT (KORE) has declared a 2Q19 DPU of 1.50 US cents. This was 5.1% lower than the forecast figure of 1.58 US cents.
This was largely due to the rights issue in November 2018, which resulted in the enlarged number of units of 825 million units as at 30 June 2019, compared to 630 million units one year ago.
Gross revenue for the quarter was 21.5% higher than the forecasted figure at US$29.3 million ($39.7 million), mainly from contributions by The Westpark Portfolio and Maitland Promenade I, following KORE’s acquisitions on 30 November 2018 and 16 January 2019 respectively.
Property expenses were also 12.5% higher than forecasted, totalling in at US$11.3 million which was largely attributable to the group’s enlarged portfolio.
Consequently, income available for distribution was 23.4% higher than forecasted, at US$12.4 million.
Fair value loss in derivatives amounted to US$5.6 million in 2Q19 as compared to a gain of US$1.4 million in 2Q18 due to movement in interest rates for the respective periods.
As at end June, cash and cash equivalents stood at US$35.6 million.
As at 30 June 2019, the weighted average lease expiry (WALE) by cash rental income (CRI) for KORE’s portfolio and top 10 tenants was 3.8 years and 4.9 years respectively.
Looking ahead, KORE’s manager seeks to remain focused on the long-term goal of delivering stable distributions to unitholders.
It notes that the REIT’s unique value proposition of its business campus-like properties that are sought after by tenants as well as KORE’s strategic exposure to the growing tech markets are areas that can be leveraged upon.
Units at Keppel-KBS US REIT closed flat at 81 US cents on Tuesday.
