Thanks to improving operational performance, Prime US REIT's revenue for the half year ended Dec 2025 was down 2.2% to US$66 million, and full year's down 5.4% to US$133.3 million. Income available for distribution was down 18.8% y-o-y to US$12.1 million for the half year, and down 24.8% y-o-y for the whole of FY2025 to US$28.7 million.
The REIT is paying a total 2HFY2025 DPU of 0.49 US cents, a jump from just 0.11 US cents paid in the year earlier, with higher distributable income payout ratio underpinned by improved cash flow visibility.
The REIT had previously held down its payout ratio at just 10% but with improvement in leasing momentum of its US office properties that has resulted in higher committed occupancy, it is paying 50% for the July 1 to Oct 5 period.
Prime US REIT plans to further increase its payout ratio to 65% from October onwards, while retaining 35% for ongoing capital and operational needs.
The REIT calls this "a higher but still prudent" distribution level. "As the rental cashflows of the majority of newly signed leases commence in 2H2026, the Manager expects further growth in PRIME’s cash property income."
In FY2025, the REIT secured leases for around 680,000 square feet and achieved a positive rental reversion of 5.6% for FY2025.
See also: Ho Sing to retire as CEO and executive director of Starhill Global REIT’s manager
The portfolio’s weighted average lease expiry (WALE) lengthened to 5.6 years from 4.4 years as at 31 December 2024, and its committed occupancy improved to 82.7% as of Dec 31 2025, up from 80.0% in 2024.
"We have started to increase distributions in a measured way, and we remain mindful of rewarding our long-term unitholders who have stayed patient with us through a challenging period," says Rahul Rana, CEO of the manager.
Besides signing two "sizeable" single‑tenant leases of around 120,000 square feet each, the REIT is "working closely" with several existing tenants on their potential expansion needs.
See also: Centurion Accommodation REIT to expand Westlite Ubi's capacity by a third
With the REIT's strengthened balance sheet, the REIT is in a better position to further improve unitholder returns, adds Rana.
Prime US REIT units closed at 23 US cents on Feb 11, up 4.55% for the day and up 35.29% in the past year.
