Prime US REIT has reported a net property income (NPI) of US$17.7 million ($23.10 million) for the 1QFY2025 ended March 31, 2025, down 7.33% y-o-y from the US$19.1 million reported in the same period a year ago.
The REIT’s distributable income for the reporting period came in at US$8.4 million, down 24.3% from the US$11.1 million in 1QFY2024.
The REIT’s revenue for 1QFY2025 increased marginally to US$33.6 million from the US$34.2 reported in 1QFY2024. However, including its divested assets, this revenue declined slightly from the US$37.1 million reported in the quarter a year ago.
The REIT’s performance is due to prolonged elevated interest rate environment since the 2H2023, and a slow recovery from the pre-pandemic remote working arrangement which necessitated the need for substantial retention of distributable income to reinvest capital into the asset portfolio.
As at end March, the REIT’s portfolio occupancy came in at 78.9%, down from the 80% in the previous quarter.
The weighted average lease expiry as at end March stood at 4.3 years, and aggregate leverage stood at 46.8%.
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The REIT has no debt maturing in 2025.
It has large leases at the Letter of Intent (LOI) stage, which is a preliminary agreement negotiated between a tenant and landlord, which it is expecting to sign in 2025 with rent collection commencing in 2026.
The REIT also has 268,000 square feet of leases which were signed in FY2024 and 1QFY2025 that will comment rent from the second quarter of this year — 21% in 2Q2025, 68% in 2H2025 and 11% in 2026.
Units in Prime US REITclosed 0.3 cents higher or 2.113% up at 14.5 cents on May 13.
