KORE US REIT (CMOU) H2 2025 earnings summary

Executive summary

• Completed refinancing of all 2025 and 2026 term loan maturities, enabling early resumption of distributions at 0.25 US cents per unit and concluding the recapitalisation plan ahead of schedule.

• Portfolio occupancy at 87.2% with 622,029 sq ft of leases signed in FY2025, and positive rental reversion of 6.8%.

• Portfolio remains diversified across key US growth markets, with over 390 tenants and significant exposure to technology, advertising, media, information, and healthcare sectors.

• Transitioning to a new U.S. asset manager due to Pacific Oak's advisory termination, with a seamless handover expected.

• The REIT will be renamed KORE US REIT effective 5 February 2026, marking a refreshed chapter post-recapitalisation.

Financial highlights

• FY2025 gross revenue rose 2.5% year-over-year to $150.2 million; net property income increased 3.0% to $80.7 million.

• Adjusted net property income was $83.7 million, up 0.3% year-over-year.

• Income available for distribution was $43.0 million, down 9.6% year-over-year, with distributions resuming in 2H 2025.

• Distribution per unit of $0.25 declared for 2H 2025.

• Portfolio valuation stable at $1.33 billion; fair value loss of $40.5 million recorded after capex and tenant improvements.

Outlook and guidance

• Targeting a steady increase in payout ratio to approximately 80% over several years, aligned with long-term portfolio performance.

• Expecting portfolio occupancy to remain in the mid-80% range by end-2026, despite known vacates.

• Focus on backfilling vacancies and enhancing leasing appeal through spec suite conversions and targeted upgrades.

• Capex for 2026 budgeted at $51 million, with $9 million for building improvements and the rest for leasing-related costs.

• Prudent capital management and redeployment of capital from non-core divestments into debt reduction and higher-growth opportunities.