KORE US REIT (CMOU) H1 2026 earnings summary

Executive summary

• Achieved record first-half leasing of over 550,000 sq ft (11.5% of portfolio NLA), reducing near-term lease expiries and supporting occupancy at 85.3% as of 30 June 2026.

• Net property income rose 6.1% year-over-year to US$43.1 million for 1H 2026; income available for distribution increased 2.1% to US$20.4 million.

• Distribution of 0.40 US cents per unit declared for 1H 2026, with payout ratio of ~21%, resuming after suspension under the Recapitalisation Plan.

• Liquidity strengthened with a new US$40 million revolving credit facility and no term-loan maturities in 2026.

• Focused on amenity-led, tenant-centric office demand in high-growth, business-friendly US markets.

Financial highlights

• Gross revenue for 1H 2026 was US$76.6 million, up 2.8% year-over-year.

• Adjusted NPI (excluding non-cash items) rose 10.2% year-over-year to US$45.6 million, driven by higher one-off termination fees and rental income.

• Net income increased 71.4% to US$20.1 million compared to 1H 2025.

• Finance and trust expenses increased 8.6% year-over-year due to higher finance costs after interest rate swaps expired.

• NAV per unit increased to US$0.70 as of 30 June 2026; total assets at US$1.4 billion.

Outlook and guidance

• Distribution payout ratio expected to progressively increase, with distribution quantum likely to remain consistent in 2H 2026, subject to market and financing conditions.

• Targeting year-end 2026 occupancy around 87%, in line with 2025, despite known vacates.

• US office market fundamentals are improving, with net absorption at the highest level since 2020 and vacancy rates declining to 20.1%.

• CapEx guidance unchanged for 2026 at US$50 million; 2027 guidance not yet provided.

• Portfolio optimization, including selective divestments, is under consideration to support debt reduction or redeployment.