Keppel Pacific Oak US REIT’s portfolio valuation dips 6.8% YoY to US$1.3b

The REIT cited four priorities that contributed 84% to the decline in valuation.

The valuation of Keppel Pacific Oak US REIT’s portfolio as of 31 December 2023 was US$1.3b, translating to a decline of 6.8% or US$97.1m from the 2022 record.

In a bourse filing, the REIT said The Plaza Buildings, Westmoor Center, Bellevue Technology Center and Iron Point contributed to approximately 84% of the decline in total portfolio valuation.

“This is largely due to the increase in capitalization rates and discount rates, as well as higher vacancy rates assumed for 2024,” the REIT disclosed.

Following the announcement, the REIT also shared that it will defer the disclosure of its 2H23 and FY2023 results.

The REIT was supposed to release the financial statements on 31 January.