Last February, the REIT announced plans to suspend distributions from 2HFY2023 to 2HFY2025 alongside a recapitalisation plan. At that time, its leverage had reached 43.2% following FY2023 valuations, nearing the regulatory limit of 50%. Its lenders, similarly wary of the US office market, were "reluctant" to lend to companies with leverage exceeding 45% in the US.
Keppel Pacific Oak US REIT’s (KORE) focus on improving its occupancy rate and reinstating its distributions in 2026 remains unchanged, says David Snyder, CEO of the manager. "Our portfolio is performing where we would expect it to, or maybe a little bit better. I mean, our leasing was very strong again in [the fourth quarter]," adds Snyder, who also serves as chief investment officer, speaking at the REIT's FY2024 results briefing.
"Interest rates are sort of where they're at [and] we've refinanced the loans that we needed to through the first quarter of 2025," he continues, adding that he had not seen anything that would change its original timeline to resume distributions.
