The manager of Keppel Pacific Oak US REIT (KORE) has reported adjusted distributable income of US$14.6 million ($20.56 million) for 3QFY2022 ended Sept 30, up 2.1% y-o-y.
This is supported by the acquisitions of Bridge Crossing in Nashville and 105 Edgeview in Denver that were completed in Aug 2021.
For 9MFY2022, adjusted distributable income stood at US$46.2 million, up 8% y-o-y.
Gross revenue for 3QFY2022 grew 3.2% y-o-y to US$37.2 million, while net property income decreased by 1.9% y-o-y to US$21.3 million.
For 9MFY2022, gross revenue increased 6.6% y-o-y to US$111.3 million, while net property income grew 3.2% y-o-y to US$64.3 million.
The portfolio’s occupancy was 92.5%, while portfolio WALE stood at 3.4 years by NLA. For 9MFY2022, about 548,708 sq ft of space was leased, equivalent to 11.2% of portfolio NLA. About 5% of in-place rents are below asking rents, providing an avenue for organic growth.
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For 9MFY2022, the portfolio experienced a 2.9% positive rent reversion. There is about a 2.5% built-in average annual rental escalation across the portfolio and average rent collection was 99% with no rent deferment requests during the quarter.
The manager said the REIT has low tenant concentration risk, as top 10 tenants contribute only 23.3% of cash rental income (CRI). The majority of top 10 tenants are established TAMI companies located in the fast-growing tech hubs of Seattle – Bellevue/Redmond, Denver and Nashville.
The manager also highlights that the KORE has a strong balance sheet with significant liquidity, with aggregate leverage of 37.5% with no long-term refinancing requirements until Q4FY2024.
Units in KORE closed 1 US cent higher or 1.88% up on Oct 26 at 54 US cents.
