Keppel Pacific Oak US REIT 3Q24 - UOB Kay Hian 2024-10-25: Gradual & Steady Recovery With Stable Occupancy

• Keppel Pacific Oak US REIT reported distributable income of US$11.9m for 3Q24 (- 8.8% y-o-y), which is broadly in line with our expectation.
• Physical occupancy improved 3ppt q-o-q to 73% in 3Q24. The gradual but steady recovery paves the way for Keppel Pacific Oak US REIT to resume distribution in 2026.

Slight decline in revenue.

• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -

Negative rental reversion of 3.5% in 3Q24,

• Keppel Pacific Oak US REIT incurred mild negative rental reversion of 1.2% for 721,392sf of office space leased in 9M24, which is equivalent to 15% of its portfolio NLA.
• Keppel Pacific Oak US REIT incurred negative rental reversion of 3.5% in 3Q24, dragged lower by new leases at The Plaza Buildings in Bellevue, which come with lower rents but also lower tenant incentives. It benefits from built-in average annual rental escalation of 2.6% across its portfolio.

Portfolio occupancy eased 2.0ppt q-o-q to 88.7% in 3Q24.

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Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-10-25 SGinvestors.io

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