Keppel Pacific Oak US REIT's 3QY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue saw a slight YoY decline, while NPI and income available for distribution fell more significantly. This was due to the absence of one-off income seen in 3Q2023, higher property expenses, and increased financing costs.

Rental Reversion

Rental reversion for 3Q stands at -3.5%, with a cumulative -1.2% for the first nine months.

Related Parties Shareholding

Directors of the REIT manager hold a relatively high share proportion, while the sponsor’s holding remains low.

Lease Profile

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

Debt Profile

The debt profile falls within the median range, with all debt unsecured.

Diversification Profile

Overall, the portfolio is well diversified.

Key Financial Metrics

The management fee is low relative to operating distributable income, and the operating distributable income on capital is high. However, the operating distributable income margin is low, and dividend distribution 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
• Downtrend: NAV per Unit, Adjusted Interest Coverage Ratio, Operating Distributable Income on Capital, Operating Distributable Income Margin, Operating Distribution Proportion

Price Range & Relative Valuation Metrics

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

Author's Opinion

Overall, performance remains similar to the previous quarter. Regarding debt, 7.4% matures in Q4 this year, with 6.6% maturing 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

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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.