Prime US REIT has reported a distribution per unit (DPU) of 0.29 US cents (0.39 cents) for the FY2024 ended Dec 31, 2024, 88.2% y-o-y lower than the DPU of 2.46 US cents declared in FY2023.
Accordingly, the REIT’s 2HFY2024 DPU came in 51.6% y-o-y lower at 0.11 US cents.
This DPU is based on the number of units entitled to distribution for 2HFY2024 and FY2024 of 1,308,259,171.
The number of units entitled to distribution has taken into account bonus issue of new units on the basis of 1 bonus unit to be credited as fully paid for every 10 existing units on March 28, 2024. The amounts for 2HFY2023 and FY2023 have been represented to take into account the effect of the bonus issue.
The manager of the REIT says that it has made the decision to announce a DPU for the 2HFY2024 of 0.11 US cents, about 10% of distributable income in order to balance its objectives to preserve a substantial portion of distributable income to meet capex needs and reinvest cash flow into the business.
The REIT reported a lower distribution to unitholders for the FY2024 of US$3.80 million, 88.2% y-o-y lower.
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The REIT recorded a lower net property income of US$75.96 million for the FY2024, lower 18.8% y-o-y.
Its gross revenue came in 11.8% y-o-y lower for the reporting period at US$140.96 million.
As at Dec 31, 2024, occupancy stood at 80% while weighted average lease expiry (WALE) stood at 4.4 years, up from the 4 years in the same period a year ago.
Following the completion of refinancing and divestment exercises in 2024, PRIME’s aggregate leverage stood at 46.7%. This represents approximately US$92.5 million debt headroom to MAS 50% leverage threshold.
As at Dec 31, 2024, 67% of borrowings are hedged or fixed to mid-2026 and beyond. PRIME has a fully extended weighted average debt maturity of 2.8 years.
Units in Prime US REIT closed 0.1 US cents lower or 0.58% down at 17 US cents on Feb 19.
