Keppel KBS-US REIT posted their inaugural distribution of 2.32 US cents for the period since listing (9 Nov 2017 to 31 Mar 2018), beating the IPO forecast of 2.31 US cents marginally.
According to the REIT manager, the stable portfolio performance and one-off compensation income resulted in net property income of US$22.3m, beating IPO forecast by 5.2%.
The one-off compensation was from a tenant at Westmoor Centre in Denver, Colorado, that was granted permission to terminate its lease on 28 Feb 2018, ahead of expiry in mid-2018.
This was in connection with a new lease commencing July 2018 for an existing tenant that desired to expand into the space. The one-off income was commercially negotiated to offset the anticipated drop in rental income, and will be used to offset the anticipated drop in distribution from 2Q 2018 to 4Q 2018 …