Category: Keppel Pacific Oak Reit

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Keppel Pacific Oak Reit Reits

Headwinds in Keppel Pacific Oak Reit (KORE)

REITKeppel Pacific Oak Reit@ 0.56 USD
If cost of debt increased by3%
Estimated current Yearly DPU0.056 USD or 0.0756 SGD
DPU impact due to 3% rise in cost of debt0.00372 USD
(Derived from KORE’s Aug 2022 slides)
DPU after interest rate impact0.05228 USD or 0.070578 SGD
Estimated Currency impact Jan 2022 vis a vis Oct 20221.35 vs 1.43 USD
Estimated % of Currency Impact6%
Estimated above overall impact-1%
Resultant Estimated Dividend Yield (In SGD)9.9%
NegativeFocus on office space will be quality over size. Hence, requirement for office space will decrease due to hybrid work arrangement? Technology sector not doing as as well may continue to consolidate and cut back on office spending i.e Meta Platforms? Current all-in average cost of debt is not low at 2.88%.
PositiveUSD remain fairly strong and positive rental reversions of 1.6%.
Disclaimer: I may own the above REIT and this post is not a recommendation to buy or sell. The above calculation is just an estimate (may be flawed or contain errors) and is based on my own hypothetical assumptions on a layman understanding without taking into consideration of factors such as hedging, some other macroeconomic factors and etc. Hence, the actual dividend yield may differ significantly from my calculations.