Excerpts from UOB KayHian report Keppel Pacific Oak US REIT (SGX: CMOU)

• Keppel Pacific Oak Reit (KORE) benefits from the dispersion of tech jobs to rising star cities, such as Atlanta, Dallas, Denver and Orlando, which account for 34.4% of its AUM.
• Management guided positive rent reversion at mid-single-digit in 2022 driven by Seattle and Sacramento. The redevelopment of multi-family units atop the car park at The Plaza Buildings will be finalised over the next two quarters.

KORE provides attractive distribution yield of 9.0% for 2022. Maintain BUY. Target price: US$1.07. Keppel Pacific Oak Reit benefits from in-migration of companies and population to rising star cities Tech jobs have migrated to rising star cities outside the Silicon Valley. These regional tech hubs are growing at a faster pace. Major tech companies Hewlett Packard, Oracle, Palantir and Tesla have moved their headquarters from California to Texas. Keppel Pacific Oak US REIT (KORE) h...