Keppel Pacific Oak US REIT’s (KORE) distribution per unit (DPU) rose 1.3% to 1.58 US cents in the second quarter ended June 30, from 1.56 US cents a year ago.
Its income available for distribution climbed 2.1% y-o-y to US$15 million from US$14.7 million.
However, KORE’s gross revenue was down 3.9% y-o-y to US$33.8 million from US$35.2 million.
Net property income (NPI) also declined 3.3% y-o-y to US$20.2 million from US$20.9 million.
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During the half year period, KORE’s DPU rose 1.9% to 3.16 US cents from 3.1 US cents in the previous corresponding period.
Its income available for distribution jumped 2.8% y-o-y to US$29.9 million from US$29.1 million.
Nevertheless, KORE’s gross revenue fell 3% y-o-y to US$68.4 million from US$70.5 million.
NPI also decreased 3.1% y-o-y to US$40.6 million from US$41.9 million.
Despite the mixed performance, KORE – which owns office assets across the US – says it recorded some positive metrics.
For one, the REIT says it continued to achieve positive rental reversion of 5.4% in 1HFY2021, driven mainly by the technology hubs of Seattle – Bellevue/Redmond and Austin.
At the same time, average rental collections for 1HFY2021 remained strong at approximately 98%, it adds.
KORE says its weighted average lease expiry by cash rental income (CRI) for KORE’s portfolio and top 10 tenants was 3.5 years and 4.5 years, respectively.
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It notes that tenant concentration risk remains low with the top 10 tenants accounting for only 20.5% of CRI.
Looking ahead, the manager of KORE says it remains confident of the long-term prospects of its key growth markets.
It adds that the REIT is proactively seeking expansion opportunities to expand and solidify its presence in Super Sun Belts and 18-Hour Cities of the US.
On July 26, KORE closed up 5 cents or 0.6% at 78.5 US cents with 592.600 units changed hands.
