"The completion not only brought down the aggregate leverage but also provided immediate additional liquidity, as Prime seeks to pare down existing debt, manage interest cost and provide for capital expenditures which are essential to enhance PRIME’s income resilience and deliver sustainable total return to unitholders," the manager said.
The REIT's aggregate leverage as at end-June was 48.9%. Following the divestment of One Town Center, the pro forma leverage is 46.4%.
In addition, Prime US REITentered into a new credit facility agreement on Aug 9 for up to US$550 million, comprising a US$400 million term loan facility and a US$150 million committed revolving credit facility.
The facility has an initial maturity of July 2026 and a further one-year extension option. US$330 million of borrowings remained hedged till mid-2026 via interest rate swap.
See also: Creative guides for ‘similar level of operating loss’ for 2HFY2025
Gross revenue in 1HFY2024 for the six months to June 30 fell by 5.8% y-o-y to US$73.5 million while net property income of was down 14% y-o-y to US$40.6 million.
Income available for distribution to unitholders for 1H2024 was US$23.3 million, after accounting for higher finance expenses due to incremental drawdowns to fund capital expenditures, translating into 1H2024 distributable income per unit of 1.78 US cents.
However, Prime US REIT will retain 90% of distributable income for capex needs, and will distribute 0.18 US cents per unit.
See also: Fortress Minerals earnings for 1QFY2026 up 7.2% y-o-y to US$2.48 mil
