Keppel Pacific Oak US REIT distributable income drops 16.2% in H1

No distribution was declared for the period.

Keppel Pacific Oak US REIT (KORE) reported a 16.2% year-on-year decline in income available for distribution to $25.6m (US$19.9m) for the first half of 2025.

No distribution was declared, in line with the REIT’s ongoing two-year suspension of payouts under its Recapitalisation Plan announced in February 2024.

Under this plan, distributions have been temporarily suspended from the second half of 2023 through the distribution that would typically be paid in the first half of 2026. The suspension aims to address capital requirements and manage leverage, although the manager has indicated distributions could resume earlier depending on market conditions.

Meanwhile, net property income (NPI) for the period also fell 3.2% to $52.37m (US$40.7m), mainly due to higher repair and maintenance costs and amortisation of leasing commissions, partially offset by lower property tax.

As at 30 June, KORE’s aggregate leverage stood at 43.7% with an interest coverage ratio of 2.5 times.