Keppel Pacific Oak US Reit Q1 distributable income falls 19.3% to US$9.6 million

[SINGAPORE] Keppel Pacific Oak US Reit (Kore) posted a distributable income of US$9.6 million for its first quarter ended Mar 31, down 19.3 per cent from US$11.9 million in the previous corresponding period.

The decline was mainly due to a lower adjusted net property income (NPI), mostly as a result of lower rental income from higher free rents due to timing differences in various leases completed for the respective periods, said the real estate investment trust’s (Reit) manager in a business update on Thursday (Apr 17).

NPI rose to US$19.7 million, down 6.2 per cent from US$21 million in the previous year.

Gross revenue amounted to US$36.9 million for Q1, 0.5 per cent lower than the US$37.1 million in the previous corresponding period.

As at end-March, the Reit’s average leverage stood at 43.7 per cent.

It also posted a negative 3.6 per cent rental reversion for the quarter, mainly affected by a renewal at Bellevue Technology Centre, said the Reit’s manager.

Units of Kore ended 1.6 per cent or US$0.003 lower at US$0.182 on Wednesday.