Gross revenue stood 2.1% lower y-o-y at US$34.6 million, while net property income (NPI) fell 2.8% y-o-y to US$20.4 million.
Adjusted NPI excluding non-cash straight-line rent, lease incentives and amortisation of leasing commissions, on the other hand, increased 2.7% y-o-y to US$20.5 million.
As at March 31, the REIT has a low gearing of 37.5% with no long-term refinancing requirements till November 2022.
It has cash and undrawn facilities of US$93.5 million as at March 31.
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The REIT also reported a portfolio committed occupancy of 91.6% as at March 31 with a weighted average lease expiry (WALE) of 3.7 years by cash rental income (CRI).
Some 128,000 sq ft of space were leased during the quarter, equivalent to 2.7% of the portfolio’s net lettable area (NLA).
Of the leases signed in 1QFY2021, 24% were new, while 61.3% were renewal contracts. Another 14.7% were expansions.
The REIT, in its 1Q business update, revealed that leasing activities were driven mainly by demand from professional services, finance and insurance, as well as tech.
Over 37% of KORE’s portfolio by NLA comprises high quality tenants from the growing and defensive sectors of technology and medical/healthcare.
SEE:DBS remains positive on US Office S-REITs on US recovery
In its 12-month rent outlook, KORE has estimated around -3.0% in its key growth markets average, -3.5% for its US average and -4.8% for its average among its gateway cities.
The REIT is also optimistic on the US’s gradual return to the workplace amidst the rollout of the Covid-19 vaccine.
By December 2021, around 91% of executives and 77% of employees expect that half of the office workforce will be back on-site.
Units in KORE closed 0.5 cent lower or 0.7% down at 73.5 US cents on April 19.
