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JurongW 27-Mar-2026 17:32
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n3wbie 17-Mar-2026 23:19
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Big block trade of 30+m shares transacted at 15.5c... more than 15% discount to last market traded price

Joelton 05-Feb-2026 09:20
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RHB upgrades KORE to &lsquo buy&rsquo at raised TP of 30 US cents on &lsquo surprise&rsquo 2HFY2025 dividend resumption
Analyst Vijay Natarajan of RHB Singapore has upgraded his call on Keppel Pacific Oak REIT (KORE) to &ldquo buy&rdquo from &ldquo neutral&rdquo at a raised target price of 30 US cents (38 cents) from 23 US cents following the REIT&rsquo s 2HFY2025 results.
Natarajan notes that the REIT&rsquo s results in the second half provided a &ldquo slight positive surprise&rdquo with the resumption of a token dividend.
He writes in his Feb 4 note: &ldquo Refinancing concerns have been addressed with successful roll-over of FY2026 loans. The US office outlook, especially for high-quality assets, has firmly turned positive with strong demand growth and limited new supply. With uncertainties slowly being lifted, we see value, with KORE trading at a distressed about 65% discount to book.&rdquo
With the REIT&rsquo s resumption of an early dividend in the 2HFY2025 representing an around 10% payout following a successful loan refinancing, KORE expects to gradually raise payouts to a stable 80% level.
For the FY2026, Natarajan has conservatively assumed a 20% payout, rising to 50% by the FY2028 and translating to an around 10% FY2028 yield.
Meanwhile, KORE is currently in the midst of terminating its US asset manager Pacific Oak Capital Advisors (POCA) and is also in late-stage negotiations with another third-party US asset manager.
On this, Natarajan writes: &ldquo The move comes in light of Pacific Oak Strategic Opportunity REIT Inc (PCOK) pursuing a liquidation plan. KORE does not anticipate this transition to impact its operations as its entire current asset management team is expected to move to the new third-party asset manager upon completion.&rdquo
Currency, PCOK holds a stake of around 6.14% in KORE, which the analyst believes will likely be sold via a block transaction.
He adds: &ldquo KORE&rsquo s sponsor Kore Pacific Advisors, which currently holds a 50% stake in the REIT manager, remains unchanged.&rdquo
In the US, the REIT is expecting near-term occupancy volatility with its key tenant, Meta expected to exit The Westpark Portfolio in the 1HFY2026, alongside a few other smaller known exits.
Natarajan notes that KORE &ldquo remains confident&rdquo of backfilling the space, with occupancy expected to ramp back up to a mid-to high-80% by the end of the FY2026. He writes: &ldquo Rent reversion should be flattish but tenant incentives are starting to see a reduction.&rdquo
Until mid-2027, the REIT does not face any debt maturity, with an interest cost of around 5% based on FY2026&rsquo s guidance.
The RHB analyst expects capital expenditure (capex) in the FY2026 to be similar to FY2025' s US$40 million.
He concludes: &ldquo Overall portfolio valuations were flat y-o-y (excluding capex) but we expect this to improve from 2026 onwards.&rdquo
Key drivers for the REIT noted by Natarajan include a portfolio focused on growth markets with tech and healthcare tenants, the migration of tenants to sub-urban and low cost-of-living red states and limited tenant concentration risks.
On the other hand, key risks include the US economy entering a recession accompanied by high interest rates, prolonged weakness in office demand from artificial intelligence (AI) led impacts and a pullback in bank financing.
As at 3.18 pm, units in Keppel Pacific Oak REIT are trading 0.5 US cents higher at 23.5 US cents.