A mixed financial performance
KORE reported a mixed set of financial results for 2023. Gross revenue inched up 1.9% year on year to US$150.8 million with net property income rising 2.2% year on year to US$86.1 million. Distributable income, however, fell by 13.8% year on year to US$52.2 million. The drop was mainly due to higher financing costs in line with overall higher interest rates. US office space also requires a substantial amount of capital to build out and lease because the landlords, rather than tenants, are responsible for funding tenant improvements, leasing commissions, and other costs....Keppel Pacific Oak US REIT (SGX: CMOU), or KORE, is facing a tough time.
The US office REIT just announced that distributions will be suspended for two years as it works on a recapitalisation plan.
KORE’s unit price promptly plunged by 40% when the news broke, taking its year-to-date decline to close to 63%.
With pessimism swirling around the troubled REIT, should investors sell the stock?
