By Amanda Lee
Keppel Pacific Oak US REIT units fell sharply after the trust said the value of its portfolio dropped and that it was delaying its 2023 financial results.
Units fell as much as 22% to US$0.25 in Wednesday trade in Singapore, putting them on track for their biggest one-day decline.
The real-estate investment trust, whose portfolio includes The Plaza Buildings in Washington and Great Hills Plaza in Texas, said late Tuesday that based on independent valuations, the value of its portfolio of U.S. assets fell 6.8% to US$1.33 billion as of end-2023.
Four properties in Washington contributed nearly 84% of the decline in the total portfolio value, the REIT said, attributing the fall to a rise in capitalization rates and higher vacancy rates assumed for this year.
Keppel Pacific Oak US REIT also said it was delaying the release of its 2023 results. That may indicate that the company could incorporate the latest valuation into its earnings.
Keppel Pacific Oak US REIT said that despite the decline in portfolio valuation, its aggregate leverage is within the regulatory limit of up to 50.0% of the value of its total assets, adding that there has been no breach of bank covenants.
Write to Amanda Lee at [email protected]
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