Prime US REIT, which holds a portfolio of 14 US office properties worth US$1.7 billion, has reported a distribution unit of 3.52 cents for 1HFY2022 ended June, up 5.7% y-o-y.
The distribution will go ex on Aug 11 and be paid on Sept 26.
Net property income for the REIT in the same period was US$50.8 million, up 9.7% y-o-y; revenue was up 13.5% y-o-y to US$81.8 million, led by contributions from two acquisitions made in July 2021, Sorrento Towers and One Tower Center.
During 2QFY2022, the REIT’s manager was able to renew 85,733 sq ft of leases at rates 11.2% higher.
The portfolio has a weighted average lease expiry of four years.
As at June 30, its gearing was 37.8%, suggesting a debt headroom of US$417 million at the 50% limit. It has US$222 million of undrawn facilities.
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The REIT manager adds that 86% of the REIT’s debt is fixed rate or swapped from floating to fixed rates, and its fully extended weighted average debt maturity is 3.2 years mitigating near-term risks.
“We are pleased to record another commendable performance for PRIME amidst the uncertainty in the current operating environment,” says Barbara Cambon, CEO and CIO of the REIT’s manager.
“This is testament to the strength and resilience of our well-diversified portfolio and tenant base across key growth markets and sectors in the US,” she adds.
“We continue to take a proactive approach to leasing, asset management as well as capital allocation, and we remain strategic and deliberate in our evaluation of quality, accretive acquisitions that add value to unitholders,” says Cambon.
Prime US REIT closed on Aug 3 at 72 US cents, up 0.7% for the day, down 14.29% year to date.
