- Keppel Pacific Oak US REIT’s 2H/FY24 financials were in line. Portfolio valuation remained stable y-o-y (excluding capex), slightly better than our expectations – we believe its valuation has bottomed.
- - Read this at SGinvestors.io -
- Key catalysts will be the gradual decline of interest rates and resumption of dividends in FY26.
Portfolio occupancy improved q-o-q
- Portfolio occupancy improved q-o-q to 90% (3Q: 88.7%), mainly from expansion demand at Bellevue Technology Center and the signing of a new healthcare tenant at Maitland Promenade. Occupancy though is expected to slightly decline (~2ppt) in the upcoming quarters due to known tenant vacates at The Plaza buildings and Westmoor Center, which we expect to be backfilled by end of the year.
- - Read this at SGinvestors.io -
- Rent reversion was -0.5% for FY24 (4Q: +1.7%) mainly affected by renewals at The Plaza buildings and Westmoor Center which were signed at lower rents. We expect rent reversion to be flattish for FY25.
FY24 distributable income fell 9% y-o-y
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