Keppel Pacific Oak US REIT - RHB Invest 2023-04-19: Maintaining Its Operational Resilience

• Keppel Pacific Oak US REIT (SGX:CMOU)’s 1Q23 operational numbers were stable. See Keppel Pacific Oak US REIT's announcement dated 18 Apr 2023.
• - Read this at SGinvestors.io -
• Keppel Pacific Oak US REIT's debt is fully unsecured and mainly from local (SG) lenders, with no refinancing due until end-2024.
• - Read this at SGinvestors.io -

Keppel Pacific Oak US REIT's 1Q23 DPU was lower

• Keppel Pacific Oak US REIT's adjusted DPU 1Q23 was lower 12.5% y-o-y, mainly due to higher financing costs on the back of rising interest rates and higher costs for loans refinanced last year.
• Overall interest costs as a result have moved up by ~100bps from 1Q22 to 3.96% per annum, but we believe it is nearing peak levels. 78% of its debt remains hedged through interest rate swaps and its interest rate cover remains healthy at 3.6x.
• Physical occupancy (return to office) across its assets has improved slightly to 64% in 1Q23 and further improvement is expected with more tenants now mandating back to office.

Portfolio occupancy remains stable at 91.9% (-0.7ppt q-o-q).

• Read more at SGinvestors.io.

Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2023-04-19 SGinvestors.io

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