Keppel Pacific Oak US REIT (CMOU) AI Stock Analysis

• Market Cap: $229.78M
• Dividend Yield: 24.56%
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• 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: 3.46
• Enterprise Value/Revenue: 5.42
• Enterprise Value/Gross Profit: 11.04
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.26
• Price Target Upside: 18.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: $0.00 ▼(-100.00% Downside)

The overall stock score of 61 reflects a mixed financial performance with strong cash flow but challenges in revenue and profitability. Technical indicators suggest neutral to slightly positive momentum, while valuation concerns due to a negative P/E ratio and lack of dividend yield weigh down the score. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Strong Cash Flow

Robust cash flow indicates effective cash management and operational efficiency, providing a buffer for financial stability and potential reinvestment.

Stable Gross Profit Margins

Stable gross profit margins suggest consistent cost management and pricing power, which are crucial for long-term profitability despite current net margin challenges.

Moderate Debt-to-Equity Ratio

A moderate debt-to-equity ratio indicates manageable leverage, allowing the company to maintain financial flexibility and reduce risk in volatile markets.

Negative Factors

Revenue Decline

Declining revenue can hinder growth prospects and reduce the company's ability to invest in new opportunities, impacting long-term competitiveness.

Negative Net Profit Margin

A negative net profit margin reflects profitability challenges, which can limit reinvestment capabilities and shareholder returns over time.

Declining Stockholders' Equity

A decline in stockholders' equity may indicate reduced financial health and can affect the company's ability to raise capital or withstand economic downturns.

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 portfolio of commercial properties. The REIT leases office and industrial spaces to a variety of tenants, which provides a stable stream of cash flow. Additional revenue can come from tenant service charges and fees related to property management. The company's earnings are further supported by its strategic partnerships and management capabilities, which help optimize property performance and occupancy rates. The REIT also benefits from favorable market conditions and trends in the U.S. commercial real estate sector, which can enhance the value of its assets and increase rental yields.

Keppel Pacific Oak US REIT Financial Statement Overview

Summary

Keppel Pacific Oak US REIT shows a mixed financial picture. While cash flow remains robust, income statement metrics reveal revenue and profit challenges, and the balance sheet indicates stable but slightly declining equity. The company should focus on addressing revenue decline and enhancing profitability to improve overall financial health.

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	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: Neutral
• Last Price: 0.22
• 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 Neutral. The current price of 0.22 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.22, and above the 200-day MA of 0.21, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.34 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$299.70M	10.33	6.49%	8.40%	-1.34%	-6.08%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CMOU	61 Neutral	$229.78M	―	-2.12%	24.56%	-1.55%	78.22%
UD1U	60 Neutral	S$390.00M	29.59	1.69%	8.52%	-11.29%	―
OXMU	48 Neutral	$267.37M	88.57	0.38%	1.89%	-12.01%	―
BTOU	43 Neutral	$126.14M	―	-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 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.