KORE US REIT reported net property income of US$43.1 million for the half year ended Jun 30, 2026, up 6.1 per cent year-on-year, as record leasing volumes lifted rental revenue despite higher financing costs.

Gross revenue rose 2.8 per cent YoY to US$76.6 million. Income available for distribution grew 2.1 per cent to US$20.4 million. The manager declared a distribution per unit (DPU) of 0.40 US cent, resuming payouts at a 21 per cent payout ratio. No year-earlier comparison was provided because distributions were suspended in the prior-year period. Payment details were not disclosed.

Adjusted NPI—which excludes straight-line rent, lease incentives and amortised leasing commissions—climbed 10.2 per cent to US$45.6 million, helped by a one-off lease-termination fee, higher operating income and stronger cash rental collections. Renewed leases made up 90.6 per cent of the 550,522 sq ft signed in the first six months, cutting near-term expiries and supporting a positive rental reversion of 1.5 per cent.

Higher financing and trust expenses, up 8.6 per cent YoY at US$17.5 million, weighed on earnings as legacy interest-rate swaps rolled off, though the impact was partly offset by lower floating rates. Portfolio occupancy stood at 85.3 per cent, down from 87.2 per cent at end-2025, while aggregate leverage was 43.3 per cent with an interest-coverage ratio of 2.5 times.

During the half, the REIT secured a new US$40 million committed revolving credit facility and extended its hedge coverage to 58.2 per cent of borrowings. There are no term-loan maturities until 2027.

Looking ahead, the manager intends to backfill vacancies to return occupancy to roughly 87 per cent by year-end, continue developing spec suites to accelerate leasing, and consider selective asset disposals to recycle capital or pare debt. The DPU for 2H 2026 is expected to remain at a similar quantum, subject to market and interest-rate conditions.

Chief executive David Snyder said the robust leasing performance reflects sustained tenant demand for well-located, amenity-rich offices in the REIT’s target U.S. growth markets. He added that management will focus on sustainable distributions and long-term total returns while proactively managing capital and exploring asset-enhancement initiatives.