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KepPacOakReitUSD
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Kep-KBS Reit
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superstartup
Elite |
23-May-2023 15:18
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Manulife up 25% Prime, KeppacOak. Your turn ?
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superstartup
Elite |
23-May-2023 14:34
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Manulife up 20% lor Everyone still waiting? In any case, Pls do your own DD
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superstartup
Elite |
23-May-2023 13:40
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Manulife reit up 17% now Prime reit KeppacOak Reit Next to follow? (All in similiar sectors) |
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VINUASAM
Member |
17-May-2023 11:29
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going down every trading day. | ||||
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eagleeyes1989
Master |
17-May-2023 09:26
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https://www.reuters.com/world/us/blackrock-call-staff-back-office-least-four-days-week-memo-2023-05-16/BlackRock to call staff back to office at least four days a week - memo |
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Joelton
Supreme |
20-Apr-2023 10:25
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KORE' s 1QFY2023 income down but analysts stay upbeat
Keppel Pacific Oak US REIT has reported lower distributable income for its 1QFY2023. However, analysts from UOB Kay Hian, RHB Singapore and DBS Group Research have all kept their " buy" calls on this counter, citing its attractive yield and hefty discount to book value.
For the three months to March 2023, KORE reported adjusted distributable income that' s 12.5% lower y-o-y, due to higher financing costs, plus slightly lower occupancy rates.
In his April 19 note, UOB Kay Hian' s Jonthan Koh, who has a 70 US cents target price on this stock, says that KORE' s earnings was in line with his expectations.
He points out that the REIT' s manager had changed its policy to take its fees in cash starting from 2QFY2022, instead of units. As such, if fees for 1QFY2022 had been taken in cash instead, the drop in 1QFY2023 would have been of a smaller magnitude.
While the overall US office market is under strain, growth continues for properties in certain locations. KORE, for one, continues to benefit from built-in annual rental escalation of 2.4% across its portfolio. Occupancy for 1QFY203 eased 0.7ppt to 91.9%.
Koh points out that KORE, having secured a US$180 million new loan facility back in Sept 2022, has used that to refinance borrowings of US$130 million due in November and January next year. With that, KORE has no refinancing requirements till next November.
" We like KORE for its exposure to suburban office and Sun Belt states. KORE provides an attractive 2023 distribution yield of 13.8%. The stock trades at P/NAV of 0.45x (55% discount to NAV per unit)," says Koh.
Some US office properties in key cities have been hit by sharp devaluation. However, RHB' s Vijay Natarajan, citing KORE' s management, points out that KORE' s core submarkets have held up " relatively well" .
" As such, the REIT does not expect any significant decline in the valuation of its assets, of more than 5%, at this juncture. Acquisition is not a focus at present while divestments are unlikely as financing conditions remain tight, keeping buyers at bay," adds Natarajan, who has a 64 US cents target price on the stock
In its April 19 note, DBS Group Research says KORE' s management " remains comfortable" on their top 10 tenants, although it is bracing for the possibility of some small downsizing of space. In the meantime, KORE will continue to monitor shadow space in the portfolio&rsquo s submarkets.
" Although still premature, management does not expect a major decline in their asset valuation as rents continue to hold up well in most of their buildings. Management believes that potential Fed rate cuts may moderate the decline in asset valuation," adds DBS, which has a 65 US cents price target.
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Joelton
Supreme |
19-Apr-2023 11:58
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Keppel Pacific Oak US Reit posts 12.5% fall in adjusted distributable income for Q1
KEPPEL Pacific Oak US Reit : CMOU -1.35% (KORE) posted an adjusted distributable income of US$13.1 million for its first quarter ended Mar 31, 2023, down 12.5 per cent from US$14.9 million a year earlier.
This was mainly due to the divestment of properties Northridge Center I and II, and Powers Ferry in the second half of 2022, the Reit&rsquo s manager said in a business update on Tuesday (Apr 18). All three properties are freehold office buildings in Atlanta, Georgia.
The manager noted that financing costs had risen as a result of rising interest rates.
The distributable income for Q1 2022 was adjusted to assume that the base fees for that quarter were paid in cash rather than units, given that the Reit&rsquo s manager had chosen to receive all its base fees for Q1 2023 in cash.
This was &ldquo to provide a like-for-like comparison to Q1 2023 actual results&rdquo , the manager said.
Otherwise, the income available for distribution for Q1 2023 is down 21.2 per cent from Q1 2022&rsquo s US$16.6 million.
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VINUASAM
Member |
19-Apr-2023 11:02
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Singapore Results Update: Keppel Pacific Oak US REIT - 1Q23: Head and shoulders above peers. (KORE SP / BUY / US$0.365 / Target: US$0.70) Adjusted distributable income dropped 12.5% yoy in 1Q23 due to higher interest rates. Portfolio occupancy eased 0.7ppt qoq to 91.9%. Excluding Spectrum, rental reversion was positive at 4.9%&hellip from UOBKH |
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spursfan
Elite |
18-Apr-2023 17:39
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https://links.sgx.com/1.0.0/corporate-announcements/G62QX5A98N0P4U7J/754847_MREL_KORE%201Q2023%20Key%20Business%20and%20Operational%20Updates%20slides.pdf | ||||
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prophetjul
Senior |
29-Mar-2023 09:38
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Trailing yield = 16% P/NAV = 0.46 Ridiculously cheap. |
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marketuncle
Senior |
28-Mar-2023 16:43
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US office REITs in distressed mode. Not only KORE. MUST plunged alot yesterday and PRIME also for quite sometime. US medium sized banks under pressure, tech sector (where most KORE and sizable PRIME lease are from) also under pressure. | ||||
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EricNat
Member |
28-Mar-2023 16:23
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Just bought in some last week.. and it drop so much for the past days. Any news out for this counter? | ||||
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Joelton
Supreme |
06-Feb-2023 09:24
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Analysts praise Keppel Pacific Oak US REIT for stability in FY2022, headwinds priced in
Analysts think headwinds are priced in for Keppel Pacific Oak US REIT (KORE), and while the outlook has moderated, it remains positive.
KORE&rsquo s results for FY2022 ended December were &ldquo slightly below forecast&rdquo at 96% of expectations, notes RHB Group Research analyst Vijay Natarajan. That said, valuations surprised on the upside, he adds.
&ldquo Operational numbers remained strong despite very challenging office market conditions &mdash we attribute this to assets in right markets and a strong leasing team,&rdquo writes Natarajan in a Feb 2 note.
Natarajan maintains his &ldquo buy&rdquo call on KORE with a lower target price of 69 US cents (91 cents) from 74 US cents previously.
KORE is a pure-play US office REIT listed in Singapore. Its portfolio consists of 13 freehold office assets located in Austin, Atlanta, Denver, Houston, Sacramento, Seattle, and Orlando with an aggregate net lettable area of around 4.7 million sq ft.
On Feb 1, KORE reported a 8.5% lower distribution per unit (DPU) y-o-y at 5.80 US cents for the FY2022 ended December.
The REIT&rsquo s DPU for 2HFY2022 was 2.78 US cents, 12.6% lower than the year prior.
The lower DPU was due to the REIT manager opting to receive 100% of its base fee for 1QFY2022 in the form of units and 100% of its base fee in cash from 2QFY2022 onwards.
Net property income (NPI) for the full-year period increased slightly by 1.9% y-o-y to US$84.3 million. Adjusted NPI, which excludes non-cash straight-line rent, lease incentives and amortisation of leasing commissions, increased by 2.3% y-o-y to US$85.5 million.
To RHB&rsquo s Natarajan, gearing remains &ldquo comfortable&rdquo at below 40%. Year-to-date, KORE&rsquo s share price has bounced back some 19%, but remains cheap at 30% below book and offers 10% yield.
KORE&rsquo s overall portfolio value surprised on the upside, says Natarajan, coming in relatively flat, up 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 earlier announced a 11% valuation decline. &ldquo This again differentiates a relatively positive outlook on KORE&rsquo s submarket and its limited tenant concentration risks,&rdquo writes the RHB analyst.
Despite uncertainty and negative news flows from the tech sector, KORE&rsquo s overall portfolio occupancy remained flat q-o-q at 92.6%. Physical occupancy, meanwhile, remained at approximately 60% on average.
For FY2023, while some fluctuations in occupancy are anticipated from known tenant exits, KORE&rsquo s management remains in active discussion with various prospects and is confident of maintaining its high occupancy levels with demand staying relatively firm for smaller leases, says Natarajan. &ldquo The impact from big tech layoffs and cutbacks is not expected to be significant in its Seattle and Sacramento submarkets and overall portfolio as such. Physical occupancy in its assets have instead seen an improvement from market cool-off and is currently at c.60%, which it sees as positive.&rdquo
In addition, KORE boasts a &ldquo strong&rdquo balance sheet with 77% of its debt hedged and no debt maturing until 4Q2024. Every 50 basis points (bps) rate increase should have a 1.2% DPU impact.
Building resilience through tough times
Meanwhile, DBS Group Research analysts Rachel Tan and Derek Tan maintain their &ldquo buy&rdquo call on KORE with an unchanged target price of 65 US cents.
&ldquo KORE&rsquo s assets in the tech hubs of Seattle, Austin and Denver contribute more than 60% of its NPI. Despite a potential slowdown in the tech sector, these submarkets remain office growth markets in the US,&rdquo they write in a Feb 2 note.
DBS notes that leasing momentum slowed in 4QFY2022, with KORE completing only 102,000 sq ft compared to the 9M2022 average of 182,000 sq ft per quarter.
Management expects leasing momentum could remain muted in 1HFY2023 in view of the uncertain macroeconomic outlook but may see some recovery in 2HFY2023 as interest rates stabilise, write the DBS analysts. &ldquo Nevertheless, management are in deep discussions on some significant leases and are hopeful to close them in the near-term.&rdquo
While the US office market remains volatile, macroeconomic sentiment has stabilised as the US Fed tapers rate hikes, notes DBS. &ldquo We believe that sentiment could turn when the macroeconomic outlook stabilises. KORE is currently trading at 0.7x price-to-book (P/B), offering FY2023 yield of 10%, an attractive level to monitor as we await a potential turn in the US office market.&rdquo
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Joelton
Supreme |
02-Feb-2023 09:29
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Kore manager sees silver lining in &lsquo minor&rsquo Big Tech layoffs even as H2 DPU falls 12.6%
THE manager of Keppel Pacific Oak US Reit : CMOU +1.87% (Kore) said large-scale layoffs amid a tech sector slowdown are not a major concern for its portfolio &ndash and might even be viewed as &ldquo somewhat positive&rdquo for the US office-focused real estate investment trust (Reit).
&ldquo When you look at the layoffs for these companies in Bellevue and Redmond and compare that to what their hiring has been over the last several years, you will find that it has been just a fraction of what their hiring had been,&rdquo said David Snyder, chief executive of the Reit manager, at a briefing on Wednesday (Feb 1) following its FY2022 results announcement.
&ldquo These are very minor corrections that have been made,&rdquo he added.
For example, Snyder pointed out that Amazon had 840,000 employees in March 2020, compared with 1.54 million employees in September 2022 &ndash after the retrenchments. &ldquo Following the layoffs, they&rsquo ll still have 82 per cent more employees than three years ago,&rdquo he said.
&ldquo As odd as it sounds, we view these hiring freezes and very minor layoffs to be somewhat positive in terms of being able to get employees back to offices. Overall, for us in that market, we think that will be a plus&hellip to get our actual physical occupancy back to where it used to be,&rdquo Snyder added.
For the second half ended Dec 31, 2022, Kore posted a distribution per unit (DPU) of US$0.0278, down 12.6 per cent from a DPU of US$0.0318 a year earlier.
Kore&rsquo s manager said the drop of 12.6 per cent was because it had elected to receive 100 per cent of its base fee for Q1 2022 in the form of units, and 100 per cent of its base fee from Q2 2022 onwards in cash.
On a like-for-like basis, assuming Q2 to Q4 2021 base fees were paid in cash rather than in units, the adjusted DPU of US$0.0278 would have been 2.8 per cent lower year on year, as compared with the adjusted DPU of US$0.0286 the year before.
Distributable income dropped 10.6 per cent year on year to US$29 million, from US$32.5 million.
Gross revenue was up 1.4 per cent to US$73.9 million for the half-year period, from US$72.9 million a year earlier.
However, net property income (NPI) fell 2 per cent to US$41.3 million for the half year, from US$42.1 million, on a 5.9 per cent increase in property expenses.
The distribution of US$0.0278 per unit for the period Jul 1 to Dec 31, 2022 will be paid out on Mar 30, after books closure on Feb 9.
For the full year, gross revenue was up 4.8 per cent to US$148 million. NPI was 1.9 per cent higher at US$84.3 million, while distributable income was down 2.9 per cent to US$60.6 million. Meanwhile, full-year DPU slipped 8.5 per cent to US$0.058.
Kore&rsquo s portfolio committed occupancy increased to 92.6 per cent as at Dec 31, 2022, with 13.5 per cent of leases by cash rental income (CRI) expiring in 2023. In Q4 2022, approximately 106,495 square feet of office space was committed, equivalent to 2.2 per cent of total net lettable area.
Rental reversion remained positive at 3.8 per cent in FY2022, driven mainly by strong rents in the technology hubs of Seattle &ndash Bellevue/Redmond, noted Kore&rsquo s manager.
About 49 per cent of Kore&rsquo s tenants operate in the growing and defensive sectors of technology, advertising, media and information medical and healthcare. Its manager added that Seattle &ndash Bellevue/Redmond, which constitutes 42.7 per cent of Kore&rsquo s portfolio NPI, experienced continued positive leasing momentum in H2 2022.
The weighted average lease expiry by CRI for Kore&rsquo s portfolio and top 10 tenants was 3.5 years and 4.6 years, respectively. According to the manager, tenant concentration risk, which is considered &ldquo a key unique value proposition&rdquo of Kore, remains low with the top 10 tenants accounting for only 24.3 per cent of CRI.
As at Dec 31, 2022, Kore&rsquo s all-in average cost of debt was 3.2 per cent, with aggregate leverage and interest coverage ratio at 38.2 per cent and four times respectively. The weighted average term to maturity of Kore&rsquo s debt was 3.6 years. Its manager noted that Kore has no long-term debt refinancing requirements until the fourth quarter of 2024, as loans due in November 2023 and January 2024 were refinanced back in September 2022.
Despite concerns about the US office market over inflation and recessionary fears, and the softening of the market&rsquo s office fundamentals, Kore&rsquo s manager said it &ldquo remains focused on optimising its portfolio performance, leveraging its well-located assets in key growth markets in the US, as well as exposure to the defensive sectors of technology and healthcare&rdquo .
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mr_wealth
Member |
26-Dec-2022 20:39
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https://financialhorse.com/keppel-us-reit-trades-at-a-13-7-dividend-yield-will-i-buy-this-reit-at-0-44/
Will I buy Keppel Pacific Oak US REIT at 13.7% dividend yield?I know all the arguments why Keppel Pacific Oak US REIT is a great buy. But I&rsquo ve been staying on the sidelines all year for REITs, waiting for the macro to improve and/or better prices to emerge. I just don&rsquo t think we are there yet. When I can get 4.28% risk free on a 6 month T-Bill, I see very little need to risk capital on REITs. Not when we look to be going into a massive storm in 2023 for commercial real estate globally. That being said though, I can see a scenario where I would start adding heavily to REITs, and possibly even Keppel Pacific Oak US REIT, in the next 6 &ndash 12 months. The key factors I look at to determine whether to buy &ndash will be the global macro outlook, and pricing for the REIT. |
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PandaB
Member |
26-Dec-2022 17:20
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Unlikely. This type of REITS P/BV is so big if they issue rights issue, the price would be further depressed. The depressed share price is probably representative of what the market views the interest rate hike would be in the next few months. If you look at the few US reits here, Manulife, Prime, they are all trading in a similar manner. Prime US has a slightly more conservative gearing and the all-in rates are better. Manulife is worst of the 3, and hence if you look at recent prices, it is the worst performing... Only way to go now, is to unlock value by selling the depressed assets (if possible), and hopefully acheive closer to NAV of the REIT. That is what Manulife CEO is looking at for the current strategic review. A rights issue at the moment is probably not a good choice imho. |
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Octavia
Supreme |
25-Dec-2022 12:27
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Probably rights cld be on the card to pay debts as bank borrowings going to be high and un-sustainable. | ||||
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prophetjul
Senior |
20-Dec-2022 11:39
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Probably be seeing 40 cents soon! Amazing! Is USA dying? | ||||
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EricNat
Member |
16-Dec-2022 14:36
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Any reason for it to keep dropping? Prolong interest rate condition? It should be good when interest drop in year 24 and 25? | ||||
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prophetjul
Senior |
16-Dec-2022 11:51
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This is looking like a sick puppy. Any news to see it coming down to Covid levels? |
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