KORE US REIT 1Q 2026: Adjusted NPI +15.9% To US$23.4M, Distributable Income +4.3%, Occupancy Eases To 85.1% On A Known Westpark Vacate
KORE's first operational update under its new name delivered double-digit NPI growth and a stronger balance sheet, but headline occupancy slipped on a single large Redmond move-out the manager is already working to backfill.
KORE US REIT — the US office S-REIT renamed from Keppel Pacific Oak US REIT in February 2026 — opened FY2026 with adjusted net property income of US$23.4 million, up 15.9% year-on-year. Higher one-off operating income and cash rental income, together with lower property expenses, drove the gain. Gross revenue rose 5.1% to US$38.7 million and net property income 13.6% to US$22.3 million, while income available for distribution increased 4.3% to US$10.0 million.
Occupancy eases on a known Westpark vacate
The quarter’s soft spot was occupancy, which eased to 85.1% from 87.2% at end-2025 — a 2.1-point drop the manager attributed almost entirely to a known vacate of roughly 124,000 sf at The Westpark Portfolio in Redmond, where negotiations to backfill part of the space are underway. Rental reversion stayed positive at +0.8%, and the quarter saw 58,157 sf of leasing (1.2% of net lettable area), of which 58% were new leases. First-quarter demand was led by Finance & Insurance (38%) and Professional Services (28%). Portfolio WALE was 3.5 years by NLA and 3.7 years by committed rental income.
Balance sheet: leverage trimmed, fully unsecured
Aggregate leverage was trimmed to 43.7% from 44.1% at end-2025, with 100% of borrowings unsecured. Average cost of debt was 4.73% (4.89% all-in), interest coverage stood at 2.5 times, and the weighted average term to maturity was 1.9 years, with 58.2% of loans hedged to fixed rates. The manager had already addressed all 2025 and 2026 term-loan maturities through US$152.5 million of facilities executed around the turn of the year.
Asset enhancement and a new US asset manager
KORE completed the lobby repositioning of the 10800 The Plaza Building in Bellevue and is building out a full spec-suite floor, “The Post,” at the same property, targeted for completion in 3Q 2026. The manager also appointed Transwestern Investment Group as its new US asset manager, with the same asset-management team that had supported the portfolio continuing in place.
Outlook
The manager said it is confident of ending FY2026 with occupancy near 2025 levels, pointing to demand from technology, aerospace and defence across its Sun Belt and tech-hub submarkets. KORE’s 13 freehold office assets — with roughly 65% of net property income from Bellevue/Redmond, Austin and Denver — were valued at US$1.3 billion, with the units trading at about 0.26x net asset value (US$0.177 against NAV of US$0.68) as at 31 March 2026.
Source: KORE US REIT, “1Q 2026 Key Business and Operational Updates,” 17 April 2026; FY2025 Financial Results, 3 February 2026.