Keppel Pacific Oak US REIT's 3QY24 Result Review
Basic Profile & Key Statistics
Key Indicators
Performance Highlight
Gross revenue saw a slight YoY decline, while NPI and income available for distribution fell more significantly. This was due to the absence of one-off income seen in 3Q2023, higher property expenses, and increased financing costs.
Rental Reversion
Rental reversion for 3Q stands at -3.5%, with a cumulative -1.2% for the first nine months.
Related Parties Shareholding
Directors of the REIT manager hold a relatively high share proportion, while the sponsor’s holding remains low.
Lease Profile
The lease expiry is well spread, and all properties are freehold. However, committed occupancy is relatively low.
Debt Profile
The debt profile falls within the median range, with all debt unsecured.
Diversification Profile
Overall, the portfolio is well diversified.
Key Financial Metrics
The management fee is low relative to operating distributable income, and the operating distributable income on capital is high. However, the operating distributable income margin is low, and dividend distribution has been halted.
DPU Breakdown
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TTM Distribution Breakdown:100% being Retained
Trends (Up to 10 Years)
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Flat: Committed Occupancy, Operating Distributable Income over Manager's Fees
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Slight Downtrend: DPU from Operations, Property Yield
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Downtrend: NAV per Unit, Adjusted Interest Coverage Ratio, Operating Distributable Income on Capital, Operating Distributable Income Margin, Operating Distribution Proportion
Price Range & Relative Valuation Metrics
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Dividend Yield: Below -2SD for 1y, 3y, 5y & 10y
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P/NAV: Average for 1y & 3y; Below -1SD for 5y & 10y
Author's Opinion
Overall, performance remains similar to the previous quarter. Regarding debt, 7.4% matures in Q4 this year, with 6.6% maturing next year.
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