Gross revenue for 2HFY2022 at US$81 million was 4.1% lower y-o-y, mainly on account of termination income received in 2HFY2021 and a tenant departure at Reston Square in 2QFY2022, post its acquisition by another firm.
For FY2022, the REIT’s gross revenue increased 4% y-o-y to US$163 million.
Property operating expenses of US$34.1 million was 12.5% higher in 2HFY2022, largely due to higher physical occupancy. For FY2022, property operating expenses of US$65.1 million was 16.1% higher than the previous year.
Net property income for 2HFY2022 was 13.3% lower to US$47 million. Coupled with higher interest costs on Prime US REIT’s unhedged debt facilities, the period’s income available for distribution of US$35.8 million was 10.8% lower y-o-y.
See also: Keppel Pacific Oak US REIT’s 1QFY2025 distributable income falls by 19.3% y-o-y to US$9.6 mil
The net property income for FY2022 stood at US$97 million, slightly down by 2.7% y-o-y. Available distributable income, however, increased 2% y-o-y to US$77.2 million.
Prime US REIT’s portfolio occupancy remained resilient at 89.1% with a weighted average lease expiry of 4.1 years as at Dec 31. Leasing activities remain strong with 142,800 sq ft of leases executed at a positive rental reversion of 20.2% in 4QFY2022. For all of 2022, 646,000 sq ft of leases were executed at a positive rental reversion of 11.4%.
“Looking ahead, as more tenants implement their return-to-office plans in 2023, the manager is working with the asset and property teams to drive rent growth, to carry out timely amenitisation and enhancements, while maintaining prudence in our capital management strategies to maximize long-term returns to unitholders,” says the manager’s CEO and CIO Barbara Cambon.
See also: Keppel DC REIT reports 1QFY2025 DPU of 2.503 cents, 14.2% higher y-o-y
Separately, Prime US REIT announced that Cambon will be retiring, with effect from March 8. She will be replaced by Harmeet Singh Bedi, who is currently the deputy CEO and CFO.
Units in Prime US REIT traded 0.5 cents lower or 0.9% down on Feb 8 at 52.5 US cents.
