All of Prime’s properties declined in value but the largest declines in valuation were from Reston Square in suburban Virginia, Village Center Station I, Denver, and One Town Center in Boca Raton Florida. As a result, its aggregate leverage rose from 37% a year ago to 42.1% as at Dec 31, 2022. This is below both the regulatory ceilings of 45% and 50%, while ICR at 4x is comfortably above the regulatory floor of 2.5x.
Prime US REIT’s (SGX:OXMU
) FY2022 results demonstrates that US office remains a challenging sector. And, following Manulife US REIT’s (MUST) (SGX:BTOU) results announcement on Feb 9, all three US office REITs have reported declines in FY2022 and 2H2022 DPU. All three REITs reported revaluation losses, with Keppel Pacific Oak US REIT (KORE) (SGX:CMOU) the lowest at just 2.2%, Prime with a 6.7% decline in valuation and MUST with a 10.9% decline in valuation.
For MUST, the decline in valuation was largely from Figueroa in downtown Los Angeles, Plaza in New Jersey, Penn in Washington DC, The Exchange in New Jersey and Centerpointe in DC.
