Keppel Pacific Oak US REIT (CMOU) AI Stock Analysis

• Market Cap: $245.45M
• Dividend Yield: N/A
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -1.55%
• EPS Growth: 78.22%
• Country: SG
• Employees: 8
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.01
• Shares Outstanding: 1,044,450,200
• 10 Day Avg. Volume: 754,120
• 30 Day Avg. Volume: 1,700,900
• PEG Ratio: 0.35
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 9.70
• Enterprise Value/Market Cap: 3.24
• Enterprise Value/Revenue: 5.42
• Enterprise Value/Gross Profit: 11.04
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.29
• Price Target Upside: 26.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $0.00 ▼(-100.00% Downside)

The overall stock score of 51 reflects significant financial challenges, with declining revenue and profitability being the most impactful factors. Technical analysis shows some positive momentum, but poor valuation due to a negative P/E ratio and lack of dividend yield further dampens the outlook.

Positive Factors

Stable Cash Flow

A diverse tenant base and long-term leases provide stable cash flow, enhancing financial predictability and resilience.

Tax Efficiency

Exemption from US withholding tax for non-US unitholders improves tax efficiency, potentially attracting more international investors.

Operational Transparency

Regular issuance of Qualified Notices enhances operational transparency, boosting investor confidence and trust in management.

Negative Factors

Declining Revenue

Declining revenue and profit margins indicate financial challenges, potentially impacting long-term profitability and growth.

High Leverage

Increasing leverage can strain financial flexibility and elevate risk, especially during economic downturns or rising interest rates.

Operational Inefficiencies

Decreasing EBIT and EBITDA margins suggest inefficiencies in operations, which may hinder profitability and require strategic improvements.

Keppel Pacific Oak US REIT Business Overview & Revenue Model

Company Description

Keppel Pacific Oak US REIT (KORE) is a distinctive office REIT listed on the main board of the Singapore Exchange Securities Trading Limited (SGX-ST) on 9 November 2017. KORE's investment strategy is to principally invest in a diversified portfolio of income-producing commercial assets and real estate-related assets in key growth markets of the United States (US) with positive economic and office fundamentals that generally outpace the US national average, and the average of the gateway cities, so as to provide sustainable distributions and strong total returns for Unitholders. KORE is managed by Keppel Pacific Oak US REIT Management Pte. Ltd., which is jointly owned by two Sponsors, Keppel Capital and KPA. KORE's portfolio comprises a balanced mix of 13 freehold office buildings and business campuses across eight key growth markets driven by innovation and technology in the US. The assets have a combined value of US$1.30 billion and an aggregate net lettable area of over 4.7 million sf. KORE has an extensive and diversified tenant base, some of which are from the growth and defensive sectors such as technology, as well as medical and healthcare, which will continue to support and drive growth. KORE is a technology-focused office REIT with over 50% of the portfolio located in the technology hubs of Seattle – Bellevue/Redmond, Austin and Denver. The remainder of the portfolio is located in the key growth markets of Houston, Dallas, Orlando, Sacramento and Atlanta.

How the Company Makes Money

Keppel Pacific Oak US REIT generates revenue primarily through rental income from its commercial properties. The REIT leases office spaces to a wide range of tenants, including multinational corporations and small businesses, ensuring a diverse income base. Additionally, the company benefits from long-term leases, which provide a stable cash flow stream. Key revenue streams include base rent from tenants, escalation clauses in leases that allow for rental increases over time, and ancillary income from services provided to tenants. The REIT may also realize capital appreciation through strategic property acquisitions and enhancements, increasing the overall value of its portfolio. Partnerships with property management firms and local real estate experts further contribute to effective asset management and operational efficiency, thereby enhancing earnings.

Keppel Pacific Oak US REIT Financial Statement Overview

Summary

Keppel Pacific Oak US REIT faces challenges with declining revenue and profitability, as reflected in the income statement. The balance sheet shows moderate leverage but poor return on equity. Cash flow metrics indicate some operational cash generation, but declining free cash flow growth poses a concern. The company needs to address operational inefficiencies and improve profitability to enhance financial health.

Income Statement

The income statement shows declining revenue growth with a negative trend in net profit margin, indicating financial challenges. The gross profit margin remains stable, but the EBIT and EBITDA margins have decreased significantly, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reveals moderate leverage with a debt-to-equity ratio that has increased slightly over time. The return on equity is negative, indicating poor profitability. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, but the operating cash flow to net income ratio is relatively healthy. The free cash flow to net income ratio indicates some level of cash generation efficiency despite recent declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	146.62M	142.62M	150.76M	147.98M	141.26M	139.59M
Gross Profit	72.07M	74.29M	80.30M	77.72M	76.33M	76.37M
EBITDA	0.00	15.79M	-74.31M	105.59M	85.66M	65.36M
Net Income	-15.57M	-6.89M	-67.72M	48.48M	77.35M	56.39M
Balance Sheet
Total Assets	1.40B	1.39B	1.39B	1.52B	1.51B	1.37B
Cash, Cash Equivalents and Short-Term Investments	46.31M	44.19M	43.78M	63.44M	50.98M	57.32M
Total Debt	610.72M	604.82M	599.57M	577.72M	561.60M	503.87M
Total Liabilities	675.11M	671.66M	670.47M	673.42M	659.67M	594.68M
Stockholders Equity	728.05M	716.31M	723.20M	846.08M	853.89M	772.07M
Cash Flow
Free Cash Flow	69.31M	22.07M	14.56M	35.74M	55.43M	48.28M
Operating Cash Flow	69.31M	75.70M	61.26M	79.37M	82.92M	74.61M
Investing Cash Flow	-42.72M	-50.60M	-46.69M	-7.60M	-130.89M	-26.28M
Financing Cash Flow	-22.23M	-22.97M	-34.22M	-59.31M	41.63M	-29.23M

Keppel Pacific Oak US REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.23
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:CMOU, the sentiment is Positive. The current price of 0.23 is above the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.23, and above the 200-day MA of 0.21, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.86 is Neutral, neither overbought nor oversold. The STOCH value of 5.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:CMOU.

Keppel Pacific Oak US REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UD1U	65 Neutral	S$390.00M	29.59	1.69%	8.52%	-11.29%	―
ODBU	64 Neutral	$302.73M	10.44	6.49%	8.49%	-1.34%	-6.08%
OXMU	57 Neutral	$287.49M	95.24	0.38%	1.79%	-12.01%	―
XZL	53 Neutral	$153.73M	―	-5.62%	―	-6.01%	-36.46%
CMOU	51 Neutral	$245.45M	-15.77	-2.12%	―	-1.55%	78.22%
BTOU	46 Neutral	$129.69M	-0.54	-48.17%	―	-27.66%	-106.71%

Keppel Pacific Oak US REIT Corporate Events

Keppel Pacific Oak US REIT Confirms Non-Applicability of US Withholding Tax for Non-US Unitholders

Keppel Pacific Oak US REIT Management Pte. Ltd. announced that the US withholding tax under Section 1446(f) of the US Internal Revenue Code does not apply to non-US unitholders transferring units in the REIT. This is because KORE operates as a publicly traded partnership that is not engaged in a US trade or business. The company has issued a Qualified Notice effective from 1 October 2025, valid for 92 days, certifying this status and plans to continue issuing such notices quarterly. This announcement reassures stakeholders of the tax implications and maintains operational transparency, potentially enhancing investor confidence.

Keppel Pacific Oak US REIT Amends Loan Facility Agreement

Keppel Pacific Oak US REIT has amended its existing loan facility agreement, originally dated July 2024, to include specific conditions related to changes in management and unitholding interests. The amended agreement outlines mandatory prepayment events that could affect approximately US$705 million in facilities if certain conditions, such as changes in management or ownership, occur. As of the announcement date, these conditions have not been breached, indicating stability in the company’s financial arrangements.