Keppel Pacific Oak US REIT’s distributable income falls 10.1% YoY to US$26.1m in FY23

The REIT attributed the decline to higher financing costs.

Keppel Pacific Oak US REIT recorded a 10.1% YoY lower income available for distribution of US$26.1m ($35.2m) in FY23. 

In a bourse filing, the REIT said its distributable income would have fallen 11.4% YoY if it paid its manager its 1Q22 base fee of US$1.7m in cash rather than in units.

The REIT attributed the decline in its distributable income to higher financing costs due to rising interest rates.

Divestments of Northridge Center I & II and Powers Ferry in Atlanta, Georgia, in 2H 2022., also contributed to the decline.

The decline, however, was offset by the better performance of the REIT’s remaining assets in the portfolio, which enabled KORE to achieve higher net property income despite the divestments.

The REIT’s NPI for the period was US$86.1m ($116m), 2.2% higher than the FY22 record.

Meanwhile, there’s no distribution declared for 2H 2023 arising from the recapitalisation plan.