KORE US REIT (CMOU) Q3 2024 TU earnings summary

Executive summary

• 3Q 2024 gross revenue declined 2.0% YoY to US$37.6m; income available for distribution fell 8.8% to US$11.9m, reflecting lower NPI and higher financing costs.

• Portfolio occupancy was 88.7% at 3Q 2024, down from 90.7% in 2Q; leasing reached 15.0% of portfolio NLA in 9M 2024.

Financial highlights

• 3Q gross revenue was US$37.6m, down 2.0% YoY; 9M revenue was US$112.0m, down 2.0%.

• 3Q NPI was US$20.1m, down 8.8% YoY; 9M NPI was US$62.1m, down 5.7%.

• Adjusted NPI, excluding non-cash straight-line rent, lease incentives and leasing commission amortisation, was US$21.2m in 3Q, down 6.6% YoY; 9M was US$64.6m, down 3.3%.

• Income available for distribution was US$11.9m in 3Q and US$35.7m in 9M, each down 8.8% YoY; finance and other trust expenses rose 9.3% to US$7.6m in 3Q.

Outlook and guidance

• Projected 12-month rent growth was 0.2% for the US average, -0.2% across key growth markets where the portfolio is present, and -0.9% for gateway cities.

• US GDP grew 3.0% QoQ in 2Q 2024; September inflation was 2.4%, unemployment 4.1%, and the Federal Reserve cut rates by 50 bps in September.

• The Federal Reserve Chair indicated further, smaller rate cuts were likely; no specific portfolio-level earnings or distribution guidance was stated.