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

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Compared to 1H YoY, gross revenue and NPI have declined. Coupled with higher finance expenses, income available for distribution declined to a larger extent.

Rental Reversion

Rental reversion for 1H stands at -0.3%.

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. 

Debt Profile

All debts are unsecured.

Diversification Profile

Overall, the portfolio is well diversified.

Key Financial Metrics

The manager's management fee is relatively low compared to the operating distributable income, and the operating distributable income on capital is high. However, the operating distributable income margin is low, and the dividend has been halted.

DPU Breakdown

• TTM Distribution Breakdown:
• 100% being Retained

Trends (Up to 10 Years)

• Flat: Committed Occupancy, Operating Distributable Income over Manager's Fees
• Slight Downtrend: DPU from Operations, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin
• Downtrend: NAV per Unit, Adjusted Interest Coverage Ratio, Operating Distribution Proportion

Price Range & Relative Valuation Metrics

• Dividend Yield - Below -2SD for 1y, 3y, 5y & 10y
• P/NAV - Average for 1y; Below -1SD for 3y, 5y & 10y

Author's Opinion

Compared to the previous half-year, gross revenue and NPI remain similar. However, income available for distribution has declined partly due to higher finance expenses. Regarding debts, the manager has early refinanced or exercised extension options for most loans expiring in 2024 and 2025. After this, only 3.3% of debt matures this year and 10.7% matures next 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

To support my work, check out:

Patreon - Subscribe and get exclusive content

Investing Note - Support by following my Investing Note profile

X - Support by following my X account

Facebook Page - Support by liking my Facebook Page    

Facebook Group - REIT Investing Community - Join to share and discuss REITs

Telegram Channel - Singapore REITs Post - Join to receive posts for Singapore REITs

Buy Me a Coffee - Treat me a coffee for my efforts

*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.