Keppel Pacific Oak US REIT's outlook is weighed by rising uncertainty over U.S. tariffs and U.S. recession odds, RHB Research's Vijay Natarajan says in a research report.

Near-term office demand is expected to pause or slow down amid this uncertainty, the analyst says.

The likelihood of a U.S. recession is increasing, which has diminished near-term U.S. office demand recovery prospects, the analyst adds.

RHB cuts its 2025 and 2026 distributable income forecasts for the REIT by 10% and 12%, respectively.

It downgrades the REIT's rating to neutral from buy and lowers the target price to US$0.19 from US$0.29. Units are 0.6% higher at US$0.18.