Home Capital Results

KORE reports 10.9% growth y-o-y in distributable income in 1Q2022

Goola Warden
Goola Warden4/19/2022 06:38 PM GMT+08  • 2 min read
KORE reports 10.9% growth y-o-y in distributable income in 1Q2022
KORE reports 10.9% y-o-y rise in 1Q2022 distributable income
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Keppel Pacific Oak US REIT (KORE) announced a 10.9% rise y-o-y in distributable income to US$16.6 million for 1Q2022. The growth was attributed to the acquisitions of Bridge Crossing in Nashville and 105 Edgeview in Denver in August 2021. Adjusted Net Property Income (NPI) rose 7.1% to US$22 million.

The portfolio’s committed occupany was 91.7% in 1Q2022; portfolio WALE stood at 3.7 years by gross rental income. During 1Q, around 146,768 sq ft of space was leased, equivalent to 2.9% of portfolio NLA. About 8.9% of in-place rents are 8.9% below asking rents, which provides an avenue for organic growth. In 1Q the portfolio experienced a 2.4% positive rent reversion. There is a 2.4% 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 says new leasing demand and expansions were from professional services 41.3%; finance and insurance 33.4%; others 15.5%; TAMI 6.3%; and medical and healthcare 3.5%

Capital management remains conservative, with well staggered debt expiries. Only 8.4% of KORE’s debt is due this year, with no long term refinancing requirements till Nov 2023. Its weighted average term to maturity is 2.9 years; interest coverage stands at 5x; aggregate leverage is a reasonable 37.5%. KORE’s manager has said that every 50bps rise in LIBOR translates to a negative 0.062 US cents in DPU a year.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now