Keppel Pacific Oak US REIT (KORE) posted net property income of US$80.7 million for the year ended Dec 31, 2025, up 3.0% year-on-year, supported by higher other operating income, stronger recoveries and lower property taxes even as cash rental income moderated amid increased free-rent periods.
Revenue grew 2.5% to US$150.2 million. The trust declared a distribution per unit of 0.25 US cent for the July-December period, resuming payouts earlier than scheduled after completing the debt-focused recapitalisation plan that began in February 2024. No distribution was made in the prior corresponding period due to the suspension.
Adjusted net property income, which excludes non-cash straight-line rent, lease incentives and leasing commission amortisation, edged 0.3% higher to US$83.7 million. Income available for distribution, however, declined 9.6% to US$43.0 million as finance and other trust expenses rose 6.0% to US$33.0 million following the expiry of interest-rate swaps, higher professional fees and accrued withholding tax.
Occupancy stood at 87.2% at end-December, with 622,029 sq ft—about 13% of portfolio net lettable area—leased during the year. Rental reversion was positive at 6.8% despite a marginally negative fourth quarter, while the weighted average lease expiry was 3.8 years by cash rental income, reflecting low tenant-concentration risk.
On the balance-sheet front, KORE refinanced all 2025 and 2026 term-loan maturities through US$152.5 million of new facilities, eliminating term-loan maturities until 2027. Aggregate leverage was 44.1% and the interest-coverage ratio 2.5 times; 64.4% of loans are hedged via floating-to-fixed swaps.
Looking ahead, the manager will focus on backfilling vacancies, converting select space into “spec suites”, and rolling out targeted upgrades such as tenant lounges, outdoor areas and food-service enhancements across several properties. It also plans to recycle capital from non-core divestments into debt reduction and potential value-accretive acquisitions in U.S. lifestyle-oriented markets, while gradually lifting the payout ratio as cash flows stabilise.
The trust and its manager will be rebranded KORE US REIT and KORE US REIT Management, respectively, from Feb 5, 2026, marking the conclusion of the recapitalisation plan and the start of a “refreshed chapter”, the manager said in a separate filing.