Deal will increase committed occupancy at The Westpark Portfolio from 73% to 77.1%
[SINGAPORE] The manager of Kore US Real Estate Investment Trust ( Kore US Reit ) has inked a 10-year lease agreement for about 32,000 square feet (sq ft) of space at its freehold business campus in Redmond, Washington.
The lease will increase committed occupancy at The Westpark Portfolio from 73 per cent to 77.1 per cent.
It will also lift the Reit’s overall committed portfolio occupancy from 85.3 per cent to 86 per cent on a pro forma basis, said the manager in a bourse filing on Monday (Aug 3).
The Westpark Portfolio is a freehold business campus comprising 19 office/flex buildings and two industrial properties. Located in Seattle’s Eastside, the campus is near major transport routes and downtown Redmond.
The tenant is a publicly traded global life sciences instrumentation company. The leased space will accommodate the tenant’s office, R&D, light manufacturing, laboratory and warehouse operations.
In the first half ended June, Kore US Reit signed 550,522 sq ft of leases, equivalent to 11.5 per cent of portfolio net lettable area.
This momentum reflects the manager’s leasing strategy, “supported by targeted asset enhancement initiatives and spec suite programmes at selected properties across the portfolio”, it noted.
Kore US Reit’s manager posted a distribution per unit of US$0.004 for H1, with a payout ratio of about 21 per cent. Distributable income was at US$20.4 million, up 2.1 per cent year on year from US$19.9 million.
As at Jun 30, aggregate leverage stood at 43.3 per cent, with an interest coverage ratio of 2.5 times. Portfolio rental reversion for H1 was up 1.5 per cent year on year.
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Units of Kore US Reit ended Monday 1.1 per cent or US$0.002 lower at US$0.177, before the news.
