Keppel-KBS US REIT reported Tuesday its second quarter net property income was US$17.99 million, up 30.4 percent from the year-ago period on two acquisitions: the Westpark Portfolio in Washington state in November 2018 and Maitland Promenade I in Orlando, FL. in January 2019.
Net property income beat the US$14.07 million forecast from its IPO prospectus by 27.9 percent, the REIT said in a filing to SGX.
The REIT also saw healthy leasing momentum, the filing said, adding the portfolio posted positive rental reversion of 8.6 percent.
“As tech and its related services sectors continue to be key drivers of the U.S. economy, KORE, with its strategic locale in tech-focused markets is experiencing growth in leasing activities and rents,” the REIT said. “Over two-thirds of leasing activities for the first half of 2019 were at KORE’s business campuses in the fast-growing tech hubs of Seattle, Austin and Denver.”
Around 8.8 percent of the portfolio was leased in the first half of the year, bringing the committed occupancy to 94.0 percent as of 30 June, Keppel-KBS US REIT said.
Gross revenue for the quarter ended 30 June was US$29.28 million, up 29.3 percent on-year, and 21.5 percent above its IPO forecast of US$24.10 million, the REIT said.
The distribution per unit (DPU) was 1.50 U.S. cents, compared with the IPO prospectus forecast for 1.22 U.S. cents, the filing said.
For the first half, the REIT reported net property income of US$36.18 million, up 27.0 percent on-year, on gross revenue of US$58.72 million, up 26.7 percent on-year. The first-half DPU was 3.00 U.S. cents, it said.
The REIT’s portfolio has 13 properties in seven growth markets in the U.S., including California, Colorado and Texas, the filing said.
While you’re here, we’re hoping you can help us out.
Shenton Wire has been providing you with quick news and market analysis. But we need your support to continue to bring you the news you’ve come to expect and to expand our reach beyond Singapore.
Your monthly contribution will directly fund our journalism.
You can check your existing account here. You can also contact us about other contribution levels or for corporate subscriptions and syndication queries.