- Stay BUY on Keppel Pacific Oak US REIT (KORE, SGX:CMOU) with revised DDM-derived US$0.69 target price from US$0.74, 27% upside. Keppel Pacific Oak US REIT’s FY22 results were slightly below (96% of forecast), while valuations surprised on the upside.
- - Read this at SGinvestors.io -
- Keppel Pacific Oak US REIT's 4Q22 adjusted NPI down 6% q-o-q due to lower income from assets divested during the quarter and higher repair and maintenance expenses. Adjusted DPU (2H) was 2.8% lower y-o-y as higher revenue was offset by an increase in interest and property expenses.
- - Read this at SGinvestors.io -
- Overall portfolio value of Keppel Pacific Oak US REIT surprised on the upside, coming in relatively flat (+0.2% y-o-y) on an absolute basis, but declined 2.7% when including capex and tenant improvements. In comparison, its peer Manulife US REIT (SGX:BTOU) earlier announced a 11% valuation decline. This again differentiates a relatively positive outlook on Keppel Pacific Oak US REIT’s submarket and its limited tenant concentration risks.
- Year-to-date, Keppel Pacific Oak US REIT's share price has bounced back ~19%, but remains cheap at 30% below book and offers 10% yield – see Keppel Pacific Oak US REIT's Dividend History.
Outlook moderated but still positive.
- Read more at SGinvestors.io.
Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2023-02-02
Read also RHB's most recent report:
2023-07-27 Keppel Pacific Oak US REIT - Rising Against The Tide.
Previous report by RHB:
2023-06-19 Keppel Pacific Oak US REIT - It’s All About Location & Purpose Of The US Office.
Price targets by other brokers at Keppel Pacific Oak US REIT Target Prices.
Listing of research reports at Keppel Pacific Oak US REIT Analyst Reports.
Relevant links:
Keppel Pacific Oak US REIT Share Price History,
Keppel Pacific Oak US REIT Announcements,
Keppel Pacific Oak US REIT Dividends & Corporate Actions,
Keppel Pacific Oak US REIT News Articles
