On 26 October 2022, Keppel Pacific Oak US REIT (“KORE”) have announced their 2022 third quarter business updates. Overall despite the negative market outlook, KORE’s results have been relatively stable as at 30 September 2022, and they seem well position to ride out the uncertainty in 2023.

Nonetheless, KORE is the REIT that have the highest risk to reward ratio that I am covering in my blog, with its direct and concentrated exposure to the US office space. Currently it is trading at a significant discount from its book value, and there are good reasons for it to be at these levels. Indirectly it also provides a large buffer for the possibility of property valuation write-downs over the short-term, which is covered under the “Key things to note” section.

I have added more considerations for this article given the nature of its assets. If there is anything I missed out,