Keppel Pacific Oak US REIT H1 DPU down 4.4%

Distributable income rosed by 5.4%.

Keppel Pacific Oak US REIT reported that its distribution per unit (DPU) fell by 4.4% in the first half of 2022.

On a like-for-like basis, however, H1 DPU saw a 0.7% increase compared to a year ago. This adjusted DPU accounted for the Reit’s manager’s decision to receive 100% of its management base fees for Q2 2022 in cash, unlike the units received from the same time in 2021.

Overall, income available for distribution to Unitholders of US$31.5m ($43.52m) for H1 2022 was higher than H1 2021 by 5.4%.

Gross revenue for H1 2022 was at US$74.1m ($102.38m), 8.4% bigger than last year. The higher gross revenue was attributed to higher recoverable property expenses as well as higher car park income as more employees return to the office. This was partially offset by lower rental income from the existing portfolio as there were some leases that were not renewed in late 2021 whereas some major leases signed in H1 2022 are still in their rent-free period.

Total net income for Keppel Pacific Oak US Reit was at US$42.9m ($59.27m).