Keppel Pacific Oak US REIT (CMOU) AI Stock Analysis

• Market Cap: $240.22M
• Dividend Yield: 24.56%
• Average Volume (3M): 977.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• 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: 1,385,950
• 30 Day Avg. Volume: 977,096
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.31
• Enterprise Value/Revenue: 5.41
• Enterprise Value/Gross Profit: 14.92
• Enterprise Value/Ebitda: 20.60
• 1Y Price Target: $0.24
• Price Target Upside: 0.00%
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: $0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by mixed financial performance and weak valuation metrics. While cash flow is strong, revenue and profit challenges weigh heavily. Technical indicators suggest a neutral market sentiment, with potential oversold conditions. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Analyst Recommendation

Analyst maintains a 'BUY' recommendation, indicating confidence in the company's future performance and potential for growth.

Leasing Activity

Management observed healthy demand for its spec suites at The Plaza Building and vacant space at Westmoor Center, indicating potential for future occupancy gains.

Rental Income

KORE benefits from built-in average annual rental escalation of 2.6%, providing a steady increase in rental income.

Negative Factors

Distributable Income

Distributable income for 1H25 declined by 16.2% year-over-year, with suspended distributions in 2024 and 2025.

Economic Risks

Economic growth could be impacted by inflation or recession, posing a risk of lower-than-expected rental income if office demand slows.

Net Property Income

Net Property Income declined by 3.2% year-over-year in 1H25 due to higher repair and maintenance expenses and lower cash rental income.

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 the leasing of its office properties to tenants, resulting in rental income. The REIT's revenue model is based on acquiring, managing, and enhancing the value of its property portfolio to ensure stable and growing rental income streams. In addition to rental income, the REIT may also earn money through property management fees and other ancillary services provided to tenants. Partnerships with local property managers and strategic acquisitions in high-demand markets further contribute to its earnings, allowing the REIT to capitalize on favorable market conditions and maintain a competitive advantage in the real estate sector.

Keppel Pacific Oak US REIT Financial Statement Overview

Summary

The financial performance is mixed. While cash flow is strong with positive operating and increasing free cash flow, the income statement shows revenue decline and negative net profit margins. The balance sheet is stable but shows a slight decline in equity.

Income Statement

The income statement exhibits fluctuating performance with a noticeable decline in revenue from 2023 to 2024. Gross profit margins are stable, but the net profit margin has been negative since 2023. EBIT and EBITDA margins have shown inconsistency, impacting profitability. Despite some earlier growth, recent revenue contraction suggests underlying challenges.

Balance Sheet

The balance sheet remains relatively stable with a moderate debt-to-equity ratio. Stockholders' equity has declined slightly over recent years, but asset levels remain consistent. Although leverage is manageable, the decrease in equity ratio suggests cautious optimism about financial stability.

Cash Flow

Cash flow performance is strong, marked by a positive operating cash flow and increasing free cash flow in 2024 compared to 2023. The company has improved its free cash flow to net income ratio, indicating better cash management despite negative net income. However, fluctuations in investing and financing cash flows pose potential risks.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	142.62M	151.57M	147.98M	138.58M	136.24M
Gross Profit	74.29M	80.30M	77.72M	76.33M	76.37M
EBITDA	15.79M	-74.31M	105.59M	104.82M	65.36M
Net Income	-6.89M	-67.72M	48.48M	77.35M	56.39M
Balance Sheet
Total Assets	1.39B	1.39B	1.52B	1.51B	1.37B
Cash, Cash Equivalents and Short-Term Investments	44.19M	43.78M	63.44M	50.98M	57.32M
Total Debt	604.82M	599.57M	577.72M	561.60M	503.87M
Total Liabilities	671.66M	670.47M	673.42M	659.67M	594.68M
Stockholders Equity	716.31M	723.20M	846.08M	853.89M	772.07M
Cash Flow
Free Cash Flow	73.99M	14.56M	35.74M	55.43M	48.28M
Operating Cash Flow	73.99M	61.26M	79.37M	82.92M	74.61M
Investing Cash Flow	-50.60M	-46.69M	-7.60M	-130.89M	-26.28M
Financing Cash Flow	-22.97M	-34.22M	-59.31M	41.63M	-29.23M

Keppel Pacific Oak US REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.24 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.21, and above the 200-day MA of 0.21, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.96 is Neutral, neither overbought nor oversold. The STOCH value of 69.84 is Neutral, 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
ODBU	74 Outperform	$298.43M	10.44	6.49%	8.44%	-1.34%	-6.08%
Sector *	63 Neutral	$7.02B	13.41	-0.50%	6.86%	4.08%	-25.24%
CMOU	58 Neutral	$240.22M	―	-2.12%	24.56%	-1.55%	78.22%
BTOU	47 Neutral	$133.24M	―	-48.17%	―	-27.66%	-106.71%
BWCU	46 Neutral	S$226.75M	―	-109.63%	14.45%	-27.59%	80.19%
OXMU	46 Neutral	$243.34M	89.52	0.38%	1.21%	-12.01%	―
XZL	―	$171.13M	―	-5.62%	―	―	―

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 has 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 the REIT operates as a publicly traded partnership not engaged in US trade or business, thus exempting brokers from withholding the tax. The company has issued a Qualified Notice effective from 1 July 2025, confirming its status, and plans to continue issuing such notices quarterly. This announcement reassures unitholders and stakeholders of the REIT’s tax-efficient structure, potentially enhancing its attractiveness to international investors.

The most recent analyst rating on (SG:CMOU) stock is a Hold with a $0.28 price target. To see the full list of analyst forecasts on Keppel Pacific Oak US REIT stock, see the SG:CMOU Stock Forecast page.

Keppel Pacific Oak US REIT Announces Change in Trustee’s Registered Address

Keppel Pacific Oak US REIT Management Pte. Ltd. announced a change in the registered address of its trustee, Perpetual (Asia) Limited, to 38 Beach Road #23-11, South Beach Tower, Singapore. This change is part of the company’s administrative updates and does not impact the office address of the Trustee, which remains at 16 Collyer Quay, Singapore. The announcement is informational and does not affect the operations or market positioning of the REIT.

The most recent analyst rating on (SG:CMOU) stock is a Hold with a $0.28 price target. To see the full list of analyst forecasts on Keppel Pacific Oak US REIT stock, see the SG:CMOU Stock Forecast page.