Today, the market reacted with shock at the sudden U-Turn in results announcement date of 31 Jan 2024 by Keppel Pacific Oak US REIT ("KPO REIT") and it crashed over <20%> as at 11.00am of 31 Jan 2024. Valuation report is out with a decline of 6.8% in property valuation, which I thought, is rather good news given that its aggregate leverage ratio is at 43.2% and Interest Coverage Ratio at 3.1 times as at 31 December 2023 year end. I am not exactly sure why KPO REIT management decided not to release the financial results as pre-planned in their notice on 5th January 2024. But this U-Turn move may signal some hidden can of worms such as adjustment of financial results or massive reduction in dividends to pay off debts.

Extract of announcement on decline in valuation by KPO REIT

Overall, I think that the situation seems not too bad given that KPO REIT has thus far avoided the tragic fate that has befallen Manulife US REIT....