Keppel Pacific Oak US REIT's 1Q FY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI remain similar YoY. However, income available for distribution declined due to higher finance costs. 

Rental Reversion

Rental revision for 1Q is at -1.4%.

Related Parties Shareholding

The directors of the REIT manager hold a relatively high proportion of shares whereas the sponsor holds a relatively low proportion of shares.

Lease Profile

The lease expiry is well spread, and all properties are freehold. However, the committed occupancy rate is relatively low.

Debt Profile

All debts are unsecured. However, the gearing ratio is relatively high, and there is a low proportion of fixed-rate debt.

Diversification Profile

Overall, the portfolio is well diversified.

Key Financial Metrics

The manager's management fee is relatively low compared to operating distributable income. Operating distributable income on capital and operating distribution proportion are high. However, the operating distributable income margin is low.

DPU Breakdown

• TTM Distribution Breakdown:
• 100% from Operation
• TTM Distribution = 25.5% of Distributable Income

Trends

• Slight Downtrend: NAV per Unit, Committed Occupancy, Operating Distributable Income Margin
• Downtrend: DPU from Operation, Adjusted Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital

Relative Valuation

• Dividend Yield - Average for 1y, 3y & 5y
• P/NAV - Below -1SD for 1y & 3y; Below -2SD for 5y

Author's Opinion

As compared to the previous quarter, gross revenue and NPI have improved. However, distributable income has declined, and no detail is provided in the business update. For debt, 12.4% of debt is matured in Q4 this year.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.