KORE US REIT (CMOU) Q1 2025 TU earnings summary

Executive summary

• 1Q 2025 gross revenue was nearly flat YoY, while NPI and income available for distribution declined; lower rental income from higher free rent weighed on adjusted NPI.

• Portfolio occupancy was 89.1% at 31 March 2025; 126,196 sq ft of leases were executed during the quarter, with negative rental reversion of 3.6%.

Financial highlights

• Gross revenue was US$36.9m, down 0.5% YoY; NPI was US$19.7m, down 6.2%.

• Adjusted NPI, excluding non-cash straight-line rent, lease incentives and leasing commission amortisation, was US$20.2m, down 6.5% YoY.

• Income available for distribution was US$9.6m, down 19.3% YoY; finance and other trust expenses were US$7.9m versus US$7.7m.

Outlook and guidance

• CoStar projected 12-month rent growth of 2.0% for key growth markets where the portfolio is present, versus 1.9% for the US average and 0.5% for gateway cities.

• Built-in average annual rental escalations across the portfolio were 2.6%; in-place rents were 2.1% below asking rents as at 1Q 2025.