Keppel Pacific Oak US REIT's 1Q FY24 Result Review
Basic Profile & Key Statistics
Key Indicators
Performance Highlight
Gross revenue and NPI remain similar YoY. However, income available for distribution declined due to higher finance costs.
Rental Reversion
Rental revision for 1Q is at -1.4%.
Related Parties Shareholding
The directors of the REIT manager hold a relatively high proportion of shares whereas the sponsor holds a relatively low proportion of shares.
Lease Profile
The lease expiry is well spread, and all properties are freehold. However, the committed occupancy rate is relatively low.
Debt Profile
All debts are unsecured. However, the gearing ratio is relatively high, and there is a low proportion of fixed-rate debt.
Diversification Profile
Overall, the portfolio is well diversified.
Key Financial Metrics
The manager's management fee is relatively low compared to operating distributable income. Operating distributable income on capital and operating distribution proportion are high. However, the operating distributable income margin is low.
DPU Breakdown
TTM Distributable Income Breakdown:100% from Operation
TTM DPU = 25.5% of Distributable Income
Trends
Slight Downtrend: NAV per Unit, Committed Occupancy, Operating Distributable Income Margin
Downtrend: DPU from Operation, Adjusted Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital
Relative Valuation
Dividend Yield - Average for 1y, 3y & 5y
P/NAV - Below -1SD for 1y & 3y; Below -2SD for 5y
Author's Opinion
As compared to the previous quarter, gross revenue and NPI have improved. However, distributable income has declined, and no detail is provided in the business update. For debt, 12.4% of debt is matured in Q4 this year.
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- Ah Huat Kopi·04-30NiceLikeReport