Good morning, everyone, and thank you for joining KORE US REIT half year 2026 financial results webcast. My name is Sheryl, and I represent Investor Relations for KORE.

Joining me today are our Chief Executive Officer, Mr. Dave Snyder, and our Chief Financial Officer, Ms.

Eileen Wee. Before we begin, let me run through some housekeeping matters.

For attendees joining us via Microsoft Teams, please keep your microphones muted throughout the presentation. If you would like to ask a question, click on the raise hand button and wait for our cue before speaking.

For participants on the webcast platform, please type your questions in the chat box provided. Today's session will begin with a summary of key highlights, followed by an overview of our financial performance, portfolio updates, and market outlook.

We will then open the floor for Q&A. Without further ado, I will now hand the time over to our CEO, Dave.

Thank you, Sheryl. Good morning, everybody.

Let me begin with a brief overview of KORE's first half performance. We delivered our strongest first half leasing performance since listing, signing more than 550,000 square feet of leases, equivalent to 11.5% of portfolio NLA.

This reflects KORE's concentration in the right markets, investment in high-quality amenities and space, continued demand for high-quality, amenity-rich office space, and the strength of our tenant relationships. We also advanced targeted asset enhancement and spec suite initiatives across the portfolio, including the successful repositioning of the lobby at 10800 The Plaza Buildings, which has supported leasing and generated strong interest in our new spec suite offerings.

Financially, KORE delivered stable performance with income available for distribution increasing 2.1% year-on-year to $20.4 million. Following the completion of the recapitalisation plan and the early resumption of distributions, the board has declared a distribution of 0.4 U.S.

cents per unit for the first half of 2026. On the capital management front, we strengthened our liquidity position with a new $40 million committed revolving credit facility.

More broadly, recovery momentum in the U.S. office market continues to build, supported by limited new supply and improving supply-demand fundamentals.

Now, I will turn it over to Eileen to cover our financial highlights.

Thank you, Dave. Slide four is a summary of KORE's financial performance for the first half of 2026.

Net property income rose 6.1% year-on-year to $43.1 million. Excluding non-cash adjustments such as the amortisation of straight-line rent, lease incentives, and amortisation of leasing commissions, which have no impact on income available for distribution, adjusted net property income was 10.2% higher year-on-year at $43.6 million.

The increase was due to higher one-off termination fee income, higher other operating income resulting from the recognition of restoration fee receipts, and higher cash rental income, partially offset by lower recovery income. Finance and other trust expenses of $17.5 million for first half 2026 was higher than first half 2025 by 8.6%, mainly due to higher finance costs following the expiration of interest rate swaps, partially offset by lower floating rates.

Income available for distribution increased 2.1% year-on-year to $20.4 million for first half 2026. Managers fee to declare a distribution of 0.4 cents per unit for first half 2026, representing a payout ratio of approximately 31%.

Slide five is a snapshot of our balance sheet. As at end-June 2026, total assets remained stable at approximately $1.4 billion.

NAV was also held steady at 0.70 cents per unit. Slide six outlines our debt-related metrics as at 30th June 2026.

Aggregate leverage stood at 43.3%, improving from 43.7% last quarter. Our all-in average cost of debt was 4.74% per annum, or 4.91% per annum including the amortisation of upfront debt financing costs.

Our interest coverage ratio remained healthy at 2.5 times, and both sensitivity scenarios show the ICR staying well above the regulatory requirement of 1.5 times. The weighted average term to maturity of our debt stands at 1.7 years, and 58.2% of our loans were hedged.

A 50 bps change in SOFR translates to an approximately $1.38 million change in income available for distribution per annum. Importantly, we strengthened our liquidity position with a new $40 million committed revolving credit facility, and continue to make good progress on our refinancing efforts.

We are currently in active discussions with our financing partners to refinance the majority of our 2027 debt maturity. Moving on to slide seven, unitholders can expect to receive their first half distribution on 29th September 2026.

For the second half 2026, we expect the distribution quantum to remain broadly consistent with the current period, subject to prevailing market and financing conditions, as well as interest rate movements. We'd like to remind non-U.S.

unitholders to ensure that their Form W-8BEN is valid and up to date to avoid being 30% withholding tax on distributions. I will now pass the time back to Dave to provide updates on KORE's operational performance.

Thank you, Eileen. Turning to slide nine, we executed 492,000 square feet of leases in the second quarter of 2026, representing 10.3% of our NLA.

Renewals accounted for 90.6% of leases signed during the period, significantly reducing near-term lease expiries, while new leases exceeded vacates and contributed to a minor increase in committed portfolio occupancy to 85.3%. Portfolio rent reversion was positive at 1.5% for both the second quarter of 2026 and the first half of 2026, driven primarily by the renewal lease at Bridge Crossing in Nashville, where we secured an early partial renewal of the main tenant.

As the tenant renewed a substantially smaller footprint of 69,000 square feet, we are actively repositioning the remaining 116,000 square feet for future lease opportunities, and have several quarters to try and find new tenants before the space comes back in Q2 2027. Leasing demand continues to be supported by a diverse mix of industries led by the technology, advertising, media, and information sector, which accounted for 23% of leases signed during the quarter, followed by medical and healthcare at 22%.

I'll now walk you through the key occupancy movements across our assets for the quarter on slide 10. At The Plaza Buildings, occupancy improved to 81.4% from 79.6%.

Notably, we leased the final spec suite at the Greenhouse in 10900 The Plaza Buildings, bringing all six spec suites to full occupancy. We also secured a 2,200 square foot lease at The Post, our new full floor of spec suites currently under construction.

At Great Hills Plaza, we signed a lease for a 7,200 square foot spec suite currently under construction, highlighting continued demand for high-quality, move-in ready space even before project completion. Westmoor Center recorded approximately 10,200 square feet of expansion leases during the quarter, but that was offset by the departure of a known vacate of approximately 17,700 square feet.

At Iron Point, we secured a new lease and completed an expansion with an existing tenant, contributing to the increase in occupancy to 82.6%. At the Westpark portfolio, we are actively marketing space that Meta vacated in the first quarter, and are currently in discussions with prospective tenants to backfill a portion of the vacancy.

I'm sure we will be announcing some good news at Westpark shortly. To drive occupancy growth across the portfolio, we continue to execute a focused leasing strategy centered on enhancing asset competitiveness and delivering move-in ready space solutions to capture tenant demand.

First, we are repositioning assets through targeted upgrades and reconfiguration initiatives. A good example is Bridge Crossing, where we are converting the property from basically a single-tenant configuration into a multi-tenant environment, enhancing leasing flexibility and broadening the potential tenant base, which will also reduce tenant concentration risk over time.

As part of that process, we will be centralizing and substantially improving the tenant amenities. Across the portfolio, we are also advancing asset enhancements.

Current projects include an outdoor amenity refresh at Westech 360, upgraded first floor furnishings and fourth floor renovation at 105 Edgeview, renovations to interior common areas and expanded outdoor amenities at Iron Point, and a significantly upgraded lobby experience at 1800 West Loop South. Second, we continue to execute an active spec suite strategy where we see clear demand.

Building on the success of our earlier projects, we are currently completing the buildout at The Post, a full spec suite floor at 10800 The Plaza Buildings, planning the conversion of a full floor spec-quality suite into three spec suites at 10900 The Plaza Buildings, and developing two spec suites each at Westech 360 and Great Hills Plaza. Together with our ongoing leasing efforts, these initiatives support our target to end 2026 with occupancy broadly aligned with the level achieved at the end of 2025, around 87%, even with the known vacates in the second half of 2026.

These initiatives may also help us replace the known vacates of 204,000 square feet in 2027, and hopefully lead to increasing occupancy in 2027, even with the headwinds of significant known vacates. Slide 12 provides a good example of how targeted asset enhancement initiatives can translate into tangible leasing outcomes.

At 10800 The Plaza Buildings, we completed the repositioning of the lobby by converting a former bank branch into a modern tenant amenity space and additional leasable area. The lobby transformation has significantly enhanced the overall arrival experience, improved the property's appeal, and strengthened its marketability.

Importantly, these efforts have already produced positive leasing results. Newly created lobby space has been leased, and as mentioned previously, we also secured one lease for one of the spec suites at The Post on the third floor of the building that is currently under development before June 30th, and we leased a second suite in July.

We continue to see strong tenant interest in the remaining spec suites under construction. Our spec suite strategy has consistently delivered positive leasing outcomes across the portfolio.

One of the key advantages of this approach is that it requires lower long-term capital expenditures, though the upfront cost is typically higher. It also allows us to respond more quickly to tenant demand and reduces downtime, which results in more rent over time.

It can also generate higher rental rates. Today, we've achieved the full lease-up of all completed full spec suite floors across the portfolio.

Examples include 1800 West Loop South, where we repositioned underutilized space into a premium market-ready offering; Iron Point, where a major vacancy was successfully converted into a flexible spec suite program; and the Greenhouse at 10900 The Plaza Buildings, where all six spec suites have been leased. Encouraged by these results, we have more than 43,000 square feet of additional spec suites currently under development and to be delivered by the end of 2026, with approximately 28% already leased ahead of completion.

We'll continue developing additional spec suites in the appropriate locations as we move into 2027 as well. Slide 14 highlights our latest spec suites project, The Post at 10800 The Plaza Buildings.

The Post will feature six studio-style spec suites, together with a dedicated amenity hub, including meeting facilities, shared workspaces, and breakout areas, exclusively for the use of tenants on that floor. We are targeting completion at the end of the third quarter of 2026, and as mentioned previously, have already secured signed leases for two of the suites before any interior walls have even been constructed.

This early leasing momentum gives us confidence that The Post will further support occupancy growth at The Plaza Buildings, and will lead to additional spec suite development at the property. KORE's portfolio remains well-diversified across geographies and industries.

The majority of our portfolio by NTI is in growing tech hubs such as Bellevue, Redmond, and Austin, as well as Denver, which is a major beneficiary of the expanding aerospace and advanced technologies ecosystem. The table on slide 16 shows our top 10 tenants.

You'll notice that the Homeland Security has moved up in the ranking this quarter, reflecting additional space taken at 125. Conversely, Comdata's contribution to CRI declined following its partial renewal and footprint reduction at Bridge Crossing that will take effect in Q2 2027.

Overall, the portfolio continues to benefit from a diversified tenant base with low concentration risk. Our top 10 tenants account for only 27.7% of CRI and 24.6% of NLA, with no single tenant contributing more than 3.8% of cash rental income.

That is substantially lower than our competitive set. Slide 18 reflects the structural trends in the U.S.

office market, which are broadly consistent with the recent past, with the same key themes playing out. Supply remains a positive contributor, with limited new development and office conversions helping to support improving market fundamentals.

At the same time, demand recovery remains selective, with leasing activity concentrated in higher-quality assets with strong amenities in business-friendly markets. Moving on to slide 19, the U.S.

office market continues to show signs of gradual recovery, with leasing fundamentals improving and supply pressures easing. Over the past 12 months, net absorption reached its strongest level since 2020, providing further evidence that demand is gradually recovering.

On slide 20, we address the recovery in office demand. What we are seeing is a clear shift towards spaces that incorporate individual workspaces while also including spaces that support collaboration, employee experience, and health and recreation.

According to CBRE's latest global workplace survey, amenity space has increased by over 120% since 2021, and now represents 22% of office space, more than double the 10% share seen in 2021. At the same time, the share of space dedicated to individual workstations has continued to decline, while collaboration and sports spaces have increased.

This reflects how occupiers are increasingly prioritizing employee experience, team interaction, and workplace utilization when making real estate decisions. These trends reinforce demand for high-quality, amenity-rich office environments, which aligns well with KORE's portfolio and our ongoing asset enhancement strategy.

Today, the majority of our properties offer amenities such as tenant lounges, conference facilities, fitness centers, and outdoor collaboration spaces, with many also providing food and beverage options. Next, slide 21 highlights a structural trend that continues to support demand in our markets: corporate migration to lower-cost, business-friendly locations.

Since 2018, more than 700 corporate headquarters relocations have taken place across the U.S., with Texas and other Sunbelt markets among the largest beneficiaries. A recent Fortune 500 example is ExxonMobil, which moved its legal headquarters from New Jersey to Texas in 2026.

Given that Exxon was founded in New Jersey more than 140 years ago, the decision underscores the increasing attractiveness of Texas as a corporate hub for major companies. Other examples include Samsung Electronics America relocating its U.S.

headquarters to Plano, Texas, part of the Dallas MSA, to support its long-term growth strategy and access the region's deep technology talent pool. Similarly, Public Storage relocated its headquarters from California to Frisco, Texas, also part of the Dallas MSA, attracted by lower operating costs, a favorable tax environment, and strong population growth.

These examples demonstrate that the migration of major corporates toward growth-oriented, lower-cost markets remains a powerful and enduring trend. Importantly for KORE, many of our assets are located in markets such as Dallas, Austin, Nashville, and Orlando, which continue to attract corporate expansion, job creation, and investment, providing a supportive backdrop for leasing demand over the longer term.

Slide 22 addresses concerns around AI and office demand. Based on what we're seeing today, the impact remains broadly positive.

AI-related layoffs account for only a small portion of overall workforce reductions, and it remains difficult to distinguish AI-driven job cuts from broader cost optimization initiatives. In fact, AI currently seems to be supporting office demand.

In first quarter of 2026, technology companies accounted for almost 23% of U.S. office leasing activity, the highest among all sectors.

Since 2019, AI companies have leased more than 20 million square feet of office space across San Francisco and Silicon Valley alone. As AI investment shifts from experimentation to large-scale deployment, demand is growing in markets with deep talent pools and innovation ecosystems, including Bellevue, Redmond, San Francisco, and Austin.

While some tasks may be automated, AI is expected to drive net employment growth of approximately 7% globally by 2030, as job creation more than offsets displacement. Overall, this is likely to reinforce demand for collaboration in high-quality, well-amenitized office space.

To conclude, while the U.S. office recovery remains selective, the key demand drivers we discussed today are aligned with KORE's portfolio positioning.

We know the high-quality portfolio located in key growth markets, benefiting from corporate migration, population growth, and business investment. Supported by proactive leasing, targeted asset enhancements, and disciplined capital management, KORE has consistently maintained occupancy above major U.S.

gateway market averages since IPO. We believe KORE is well-positioned to capture the recovery in office demand while creating long-term value for unitholders.

With that, I'll hand it over to Sheryl.

Thanks, Dave. We will now take questions.

For analysts who are joining us on Teams, please click on the raise hand button if you would like to ask a question, and wait for our cue before you unmute yourself to pose your question. For those joining us online via the webcast platform, please type your questions via the chat box provided.

Hi, Derek, you may ask your question.

Good morning, Derek.

Hi, thanks, Sheryl. Hi, Dave, can you hear me?

We can hear you just fine.

Okay. Thanks for the presentation, and congrats.

You're delivering ahead of my estimates. This is a good sign.

I wanted to ask a few questions, right. I hear you talking a lot about the spec suites strategy.

I think it's working out, maybe specifically to The Plaza Buildings, right, having it taken up. Could you give us a sense about the rents that you've been able to achieve there for your spec suites versus typically what you could get for building?

Then secondly, the new tenants who take up these spec suites, how long typically are they there for the property? That's my first question.

That sounds like two questions, actually. Let me

take

the first one first. In terms of the rates that we're getting at Plaza for spec suites, typically, our rates at Plaza are asking rates, I guess, maybe, somewhere typically around $44 for the portfolio.

At spec suites that we're doing right now, we have actually been able to achieve, I think, probably the highest rents that we've ever had at Plaza Buildings. Mind you, that's in what we used to call the U.S.

Bank Building, the 10800 building that we just redid the lobby at, which is the smaller floor plate, historically considered slightly less attractive with fewer amenities. We're picking that up, but there's still a lot of way to get to that building.

We're getting things like $47 on that for a 2,200-ish square foot lease. We're feeling really good about the rates there.

The rates really are not the big factor. Figure 2,200 square feet and say we're $3 above, it's really not going to contribute a ton.

The biggest benefits are going to be when we turn that space, we're going to have much less downtime. Typically, if we turn a space, not spec, we're going to have to build out for a tenant once you find the tenant.

That's probably a six-month buildout, and so going without rent for six months can be tough. We find that many of our spec suites, we can lease and have anywhere from zero to maybe one month downtime, typically.

Sometimes it goes a bit longer. That means in this case, you're talking about $47 for six months, half of that amount per foot.

That's a huge savings. Then not having to spend as much when we turn the space, because we're only doing basically carpet and paint, maybe only paint in some cases if it's a short term, then we're saving a ton of money doing it that way.

In terms of the leases that we typically sign at Plaza, I'd say normally three, four, five years. The spaces that we're signing in these spec suites align with that, somewhere between three and four years for the couple that we've just signed for The Post building, which, that shorter time frame also is typical for us with tech tenants, also typical for us in Plaza.

That downtime benefit really can make a big difference in a place like that where we tend to have shorter leases as well.

I see. Sorry, I missed what you mentioned, but typically spec suites you get a premium of $3 to $4 per square foot, then?

I would say we don't have the answer for that. What we've gotten at Plaza right now is a premium of about that, in terms of what we're leasing The Post for right now.

I think in the portfolio, we're going to be working through some of our history so that we can actually provide some information along those lines next quarter, and we'll probably provide some more information even when we get to fourth quarter and year end. We're going to try to put some numbers around the benefits to that downtime and the rent that we would get there, the cost savings over time from turning the space at lower costs on a go-forward basis, and also in terms of rent rates and the benefit that we get there.

I think over the next couple of quarters, we're going to be able to start giving pieces of that out, and really help people understand better the significant benefits that we see from spec suites.

Got it. My second or third question, just curious about your vacancies at the Westpark and Westmoor.

Could you give us some color how you see it trending by the end of the year? Yeah.

Let's go ahead and start with Westpark. I've already stated in my comments that we expect to have some good news there shortly, which we do.

I think we will have a decent amount of leasing at Westpark before the end of the year. When we say that we're hoping to end the year at around that same 87% level that we ended last year, even with getting back all the Meta space, other known vacates, all the things we dealt with this year, I think that's going to in large part be coming from Westpark.

I think that we will see at least a couple of leases there. It may not all be Meta space.

We had one other large space that was vacant there, about 32,000 square feet. We've got three buildings that are occupied, all of a couple, most of another.

I think some combination of a couple of those will probably happen this year. Then I would expect the remainder of that to happen in 2027.

As for Westmoor, we've got a little bit of vacancy that just came back on that 17,000-square-footer. We've had a little bit of leasing there.

We've got Highmark, which is a tenant in one of the buildings. They have done a forward renewal, where they're going to be giving back some of the space at maturity, and we have or are about to finish leasing basically all of that space back up.

I don't expect that we will actually recognize any impact from the space that they're going to be giving back. I think that's a positive for Westmoor in terms of keeping things strong.

We've had one tenant there that's done some expansions. We've got some other tenants that have been reaching out.

One of the fairly significant, not one of the biggest, but one of our very significant tenants has been talking to us about even renewing a little bit early, things like that. I think we're feeling good.

That market is a little tough, but we've got one building basically that's vacant out of a six-building portfolio, nearly vacant. That is one we're focusing on.

We've redone the lobby there, and we have been approached by at least one tenant about taking some space there, an expansion space into that building, and then there has been some amount of touring there. I don't know exactly the timing, but I do expect to eventually see some space leased at Westmoor that's going to help us, but I think that's more likely going to be 2027, and I feel pretty good about leasing some space there in 2027.

Got it. Sorry, just one more question.

I know BJ is waiting, but I was just curious about your performance. You mentioned about the termination income, right, these sort of stuff.

If you strip that out, how would your NPI look year-on-year?

Hi, Derek.

Hi, Eileen.

Thanks for asking Eileen a question. I appreciate it.

We mentioned that there is a one-off termination fee income as well as reinstatement, pure reinstatement costs, restoration fee, that's what were all one-off in nature. If we strip that out, adjusted NPI is probably a bit lower, but this is mainly coming from lower recovery, because there are some timings in terms of the recoverable of expenses, as well as some higher property expenses.

This is offset by higher rental income. In terms of cash rental income, it's actually higher.

Okay. Got it.

That's all for me for now. Thanks.

Great, thanks, Derek.

Hi, BJ, you want to ask a question?

Good morning, BJ.

Hey, hi. Morning, Dave, Eileen, and Sheryl.

Congrats, I think a decent first half considering the volatility in the market. Just a couple of follow-ups, maybe firstly on Derek's question, the question of reinstatement and the one-off termination.

It was about $2.6 million, if I'm not wrong, and just want to confirm that this amount has also been taken off from the distributions, because your flow-through from NPI to distribution seems to be a bit lower.

BJ, yes, you are right, because it's capital in nature, yes, this has been deducted from distribution.

Okay. Can I just confirm the amount?

It's $2.2, somewhere around $2-plus million, right?

For the restoration fee, is about $2.3 million.

Okay. Got it.

Since you are on the line, I think maybe one more question on financing cost. Maybe the new $40 million loan, is this an additional facility, or is it an existing revolver refinancing, and possibly what should be the financing cost, especially with the recent interest rate increase in the market you are seeing, and what could be the guidance for '27 and '28?

For the $40 million, is actually a new loan, a new facility, also we've had a new relationship with a new bank. Yes, this is a additional facility.

As for the guidance on interest rate, assuming the current SOFR, we will probably end the year 2026 at about similarly 5%, 5.1%,

5%, 5.1%. So 5% to 5.1%.

I think it's too early to predict for '25 to '27, I guess. Okay.

Back to Dave on some leasing questions. I think probably in terms of leasing, for this Bridge Crossing, is this Comdata that is downsizing?

Any the reasons why they are downsizing? Is there any other building where you expect occupancy to improve other than Westpark portfolio, probably The Plaza Buildings, what should we expect?

Let me go ahead and try to take those in a little bit of order. It is Comdata at Bridge Crossing.

That is where they're going to be downsizing. It really came about, they've got a new CEO who just wants to cut footprint.

Basically, they originally came back trying to keep way more of the space, wanted an additional entire floor, and they got told no. The people locally there said we need this space, and their CEO, who's in another market, basically just said no.

We had fully negotiated it. Everything was ready to go.

We had signed it and were waiting for their signature, and then the new CEO came in and just backed off the whole thing. At this point, they're in 69,000 square feet, they gave back the rest.

The last conversation we've had with our leasing agent and asset manager is that they're pretty confident they'll be coming back and asking for some of the space back. We'll see if that happens or not.

As for the moment, we feel pretty good about the space. We already had a plan that we were working on and have basically built out now for what we're going to do with the amenities, just with the amount of space we originally thought they're giving back, because we do need to do some work there.

It was especially what had been there previously for a single-tenant use building. We're going to do that work, and I think that's going to have some real benefits for us.

In terms of some of the other places and Plaza Buildings and the like, our known vacates that are coming up for the rest of this year, we're only really looking at about 28,000 square feet, and that's a mix of the one small other tenant at Bridge, one tenant at Westech, one tenant at Bellaire. When we look into 2027, the majority of that is going to be coming out of Bridge Crossing.

At the 200,000 square feet, 116,000 of it's at Bridge. We've got some significant piece from one tenant at 1800 West Loop South, Westmoor Center, but the Westmoor Center either is or we expect will be shortly backfilled.

Then a very small space, 105. It's not going to be Plaza Buildings.

Plaza Buildings has very little roll at all coming up in 2027, it gives us a really good time to bump up occupancy there with our plan of building out The Post that we're already building for a full floor of spec suites. We are going to go ahead and take the third floor of the 10900 building that is one of the UiPath floors that came back that is built to the same level or even higher of our spec when we build there.

It's fully to the level of what we call tech spec. Exposed ceilings everywhere, polished concrete floors, great buildout, just all the right spaces, everything else.

We're going to split that into three spec suites and see if we can't find some tenants that are in kind of a more typical size for us. There's going to be some cost, but far less, we expect, than typically doing a spec suite at Plaza Buildings, because we don't have to expose ceilings, polish concrete floors.

We're erecting walls and doing things like that, creating the common area corridor. That's going to be a positive.

Then, in the not-too-distant future, I expect we'll do another full floor of spec suites at 10800. We might even start on it before the end of the year, given the leasing's been so strong on The Post.

Then we'll just plan on taking some of the other full floor vacancies we've got back that we've been sitting on because of very nice build quality. The UiPath space and others are full tech spec, amazing space.

We just were hoping to find full floor tenants rather than have to do a little bit of work to atomize them. The way things are going, and with our goal of trying to keep most tenants smaller rather than larger, I think we'll be doing a lot of spec suites in 2027.

I think we'll, as we build that out, I think we'll see leasing go just as quickly as it's going at The Post, which means Plaza's going to have, I think, a great year in 2027.

Got it. Just one last question.

Is there a revised capex guidance for '26 and '27, and are you looking at divestment? Is this still a possibility in this year?

For revised capex, there's no change for 2026. We think our budget for the year should work just fine, the $50 million we've talked about is still the same $50 million.

Probably do a little bit of retriggering of some of that to move a little bit of money out of what would have probably been TIs and move that into spec suites so that we can start early on some of the projects that I was just mentioning. I would say no change overall.

We haven't given a guidance number yet for 2027. Then in terms of divestments, I think we're looking at 2027.

I think that's what I've said in the past. 2026, we hopefully start to see some pick up, maybe see some banks getting back into the market, and hopefully be able to have a chance at divestments in 2027.

Right now, with all the things that we're seeing and all the uncertainty in the market, there may be a little bit of a delay in that. It could be end 2027, something like that.

We shall see. We've got Iron Point in Sacramento that would be on the list for things that we would dispose.

Then 1800 West Loop in Houston is the question mark, and that question mark exists because we haven't seen a lot of rental increase, even though we've seen cost increases for TIs and the like. If we're able to drive some rental increase with some of the work we're going to do at 1800 in the lobby and potentially elsewhere before the market comes back, we might find that that's a building we keep.

We might find that's still a building that we want to go ahead and move. We shall see, but I don't think we'll be seeing a divestment until at the earliest second half 2027.

Got it. Thank you.

That's all I have.

All right, thanks, BJ.

We will now take questions from the webcast. There's one question from [Dexter?]

. What is the expected payout ratio for FY 2027 and 2028?

For the payout ratio for 2027 and '28, we have not provided any guidance for that, given all the uncertainties in the market for now. Basically, when we look at payout ratio, we will consider the portfolio valuations, the leverage, as well as the performance.

Given what is happening in the market now, we felt that it's probably a bit too early now to provide the guidance for 2027 and '28. As when the time goes, we will provide the guidance when we are able to.

I think we can safely say that the goal is to increase the percentage over time. For now, we've done a distribution for the first half, and we would expect that to be the baseline going forward, and we expect to see increases over time.

The next question we have is on the Westpark DTA. I think Dave has previously mentioned about some of the updates on Westpark space.

Last time, it was mentioned that you're looking to lease out half of Westpark DTA by Q2 2026. Maybe, Dave, you would like to comment a bit more on when do you expect the remainder space to be backfilled?

Don't think we've ever said we were going to lease out Meta's space by Q2 2026, because that would have been an impossibility. I think we've said that we were hoping to release some of that space, and we're fortunate we've released two of those spaces of the three before the end of 2026, which remains our target.

At this point, and again, I brought up earlier in response to one of the other questions, we really have four significant spaces at Westpark portfolio. We have the three buildings from Meta, and we have the significant portion of Building A, about 32,000 square feet, that we already had vacant.

Of those four spaces, yeah, I still feel confident we will lease at least two of the four before the end of the year. If things go well, we might be able to lease part of the third or maybe even all of the third of those spaces.

Thank you. Next question we have: which KORE achieved its strongest first half leasing performance in listing, which markets or asset drove this, and is it mainly a timing impact from renewals, or does it reflect a broader improvement in tenant demand?

This was mostly renewals. It's 90% renewals that we saw for the first half of 2026, which, in some ways, I imagine some people expected to see a huge bump in occupancy when you see the number of square feet that we renewed.

However, if you just look at and focus on what the lease expirations are over the next couple of years that were quite high, that I think some people were concerned about, those have been reduced down to numbers that we typically see in any given year. I think it's taken a lot of risk off the table that way.

When we look at where we saw a lot of the renewals, where we saw a lot of the leasing happening, the biggest piece of it, I guess, was in Bellevue and Redmond, which was about a quarter of that. Dallas saw another big chunk, as did Denver, with both of them somewhere in a range around 20%.

Then Bridge Crossing and in Houston made up most of the rest, and the other markets were pretty small percentage of that. Significant renewals, some new leases, and we expect to continue to see some renewals happening throughout the rest of the year, but also, hopefully some fairly good size new leases happening before the end of the year as well.

Thank you. Next question we have: committed occupancy was 85.3% at the end-June, still below your 87% to 88% as at the end '25.

You target occupancy to be broadly in line, by year end. What gives you this confidence that you can achieve this?

That's a great question. I think the confidence that we have is we've got great space.

When we look at Westpark, that has been a place where, no matter what space we get back, it leases up very quickly. There isn't really a whole lot in the competitive set that can really truly compete with the ability we can give tenants of having a ground floor with loading docks, basically can be used for lab, development, production, whatever it is that they need to do with actual physical products, and can also be used for office space, but that may not always be highest and best.

Then a second story where they can have all the office for the engineers, for the other folks up top. They've got the ability to have some high clear height in some of that space.

A lot of that first floor space gets to substantial clear height that you wouldn't typically see in an office building, essentially full two stories clear height and maybe more, 20 to 28 square foot clear height in some of those spaces. There's really some great opportunities there, it's in high demand and we just don't see much that competes.

We have always been able to lease that space quickly, so that's why we feel pretty confident we're going to have strong leasing at that property. I think the spec suite programs that we have has delivered results that have been fantastic every time we've done it.

We'll continue to see the benefits of that in Austin, where we've got spec suites under construction; Plaza Buildings, where we've got spec suites under construction that are leasing faster than we can even almost start building them; and more spec suites to come; and then also some continued demand that we're seeing in some of the other markets that we have. I think getting to that 87% at the beginning of the year felt like it would be a big challenge.

Having a lot of the renewals done that we have seen over the first half, with some of the new leasing that we saw this quarter that offset all the other known vacates that came back and gave us ability to even grow occupancy slightly, was a big positive. I think momentum from the things I've already talked about is going to get us the rest of the way to that 87% by year end.

Still

on occupancy, there's also another question. The committed occupancy is 85.3%.

What is the current economic occupancy? Where do we hope to end 2026 and 2027 on both the committed and economic occupancy front?

I understand where the question comes from, but we don't disclose our economic occupancy, so that one is not going to get answered. In terms of committed occupancy, we've mentioned we've got 200,000 square feet of known vacates coming up in 2027.

It's not too far off what we had coming up in 2026 when we were sitting in 2025 looking ahead. At this point, we're feeling quite confident that 2026 is going to end right around where 2025 did.

I think we're hopeful, with the strategy that we have in place and are developing for leasing space, substantially that's doing some of the remodeling and reworking that we need to do at Bridge Crossing to make sure we've got all the right amenity space built out there so that we can attract new tenancy. We've got 116,000 plus the 13 we expect from the tenant, basically about 140,000 square feet to work with there in a market that is continuing to be one of the strongest markets in the U.S.

Nashville has just been going crazy for years at this point, and so we feel good about the market that we're in there. We've got a lot of space at Plaza, which is the place where we move the needle the most, because it's got the highest rent in the portfolio.

As we lease up space there, it has a disproportionately positive impact on NPI and other things as we lease that space. The plans I mentioned in response to one of the earlier questions about building out more spec floors at Plaza is going to really contribute to that.

We've got space at Westmoor. We've got space in Austin.

We've got, what I would call, opportunity in a number of places. That also does include Iron Point in Sacramento, which is still in the low 80s as well.

We've got a lot of levers we can pull and that we are pulling to make sure we can do that, and we've got a lot of opportunity. Far, we've seen a lot of great results in the first half of 2026, and we expect to keep that momentum going.

I think Dave has actually covered a bit on the markets that you are seeing just now in your response, but maybe just to tag on to which of KORE's markets are recovering faster and which do you see will continue to remain challenging?

That's also a very good question. Without just running through them all, I guess, at this point, Bellevue and Redmond, I'm going to lump those two together.

Recovery there is very strong. I would probably say at this point Bellevue may be back to its old place of being what I would call the strongest market in the U.S.

It's one of the few markets where we're seeing some construction happening for office buildings, and those are being developed spec, no tenancy. We've seen eight come out of the ground and be substantially leased, nearly fully leased already.

There's another that's done basically the same thing, and there's talk of at least one to two more happening in downtown Bellevue. That, for us, has been a net positive.

Typically, that may not be the case, but in the case of Bellevue, with construction costs as high as they are, those rent levels at those new buildings are so much higher than ours that it has really given us some of the ability to raise rents that we've seen. I mentioned earlier some of the highest rents we've ever achieved at Plaza Buildings were on those spec suites, and I think that some of that is coming from the fact that these new developments are $20 to maybe even higher dollars per foot higher than our rents.

While the quality exterior in those buildings is absolutely nicer than ours, the quality of the interiors, we're sitting in the same space. We build out the same level of space as they do, and our amenities are quite nice as well.

We feel great there. Redmond has been very strong.

Redmond is the one market where we saw rent increases basically throughout pandemic and since. That market has never not been strong.

We move down to Sacramento, and if I was in downtown Sacramento, like the competitors, I would have to tell you, yeah, there's not much leasing going on, and it's not great. In our market out in Folsom, where we are, things are still looking good.

We've had good momentum. We just suffered there from having a larger group of tenants over the course of 12, 14, 18 months, whatever it was, that vacated for a number of different reasons.

A lot of them were in mortgage industry, other things related to housing, which kind of fell apart during the pandemic, and then there's some others that had other things happen to them. Since we did the work there and built out our spec building and built out new amenities, momentum's been great, and I think we'll continue to lease there and that should go well.

Denver is a place where we do have questions. We're doing pretty well at Westmoor in terms of maintaining where we're at, but the overall market or submarket that we're in has some struggles, but we are seeing a big pickup in the area due to some of the aerospace, tech, defense firms, and the like, and Boulder seems to be doing quite well, which means there will likely be more push into our submarket, which is between Boulder and Denver.

That is probably one of the more troubling locations in terms of where we're focused. Austin, again, if I was downtown, I'd have a very different conversation, but in our submarket, we feel really good.

We've had great momentum. We're doing quite well there.

We move over to Dallas, we feel really good about both Dallas as a whole and our submarket in particular. As we move to Houston, I've already talked about the concerns there in terms of being able to raise rents and that being a necessity for that to be a long-term keep in our portfolio, but for now, we are seeing some good leasing at the spec suites that we've built.

We do have touring going on, and I'm hopeful that we'll be having some leasing occur in that building in the not-too-distant future, which should help for overall occupancy and income. Where do we move from there?

Nashville, we've already covered. I think doing well, love to shrink that market.

Then we move into Florida, and in Orlando, that market has been incredibly strong for us. Those buildings, even if we lose tenants, again, we fill them right back up.

I think we feel really strong, 95% occupied now, and if there's small dips here or there, we tend to get back up to this level relatively quickly. Our micromarket, if you will, in Maitland, has a limited supply of Class A office.

We have some of, if not the best. Some of that office has been taken off the market by a firm that has bought some of it and used it for their own headquarters, no longer multi-tenant office.

That happened last year. We could potentially see more of that happen, but for now, we feel good about that market and our ability to continue to lease there.

Overall, I think we feel quite good, and the two places that I would tell you that we're really looking at, focused on, would be Denver and Houston to make sure we're doing the right things with those properties to attract the right tenancy, make sure that we're signing the right leases. Right now, you think about a place like Houston, where those rents haven't been growing, what that means is we need to sign longer leases there than we do in the rest of the portfolio where we can be profitable with shorter-term leases.

That's what we're looking at. There are things that we can do to try to make those more profitable, make that work, and that is the focus in markets like that, and also potentially in Denver as well.

Thank you, Dave. I think we have covered most of the questions from the webcast.

Are there any more questions from the analysts? If not, we will proceed to end the call.

I think that's all for today's webcast. Thank you, everyone, for attending, and have a pleasant day ahead.

Thank you all very much. We appreciate your time and interest.

As Sheryl said, have a wonderful day.