On 1 February 2023, Keppel Pacific Oak US REIT (“KORE”) have announced their 2022 full year results. Since my last article, the share price of KORE have continued to decrease with the overall negative market sentiments for US Office REITs. Although some of the fundamentals of KORE have deteriorated this quarter, it is not as significant as the decline in share price. KORE is the REIT that have the highest risk to reward ratio that I am holding and covering in my blog with its direct and concentrated exposure to the US office space.

Surprisingly, there were no investment valuation write-downs for KORE this quarter unlike some of their peers. Currently it is still 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