Prime US Reit distributable income for Q1 2025 down 30% at US$8.4 million
Its manager says the Reit has to retain a ‘substantial’ portion of distributable income to reinvest capital into its asset portfolio
[SINGAPORE] Prime US Reit’s distributable income fell 30 per cent to US$8.4 million, from US$12 million in the year-ago period.
On a same-store basis, income available for distribution declined by 24 per cent from US$11.1 million.
The prolonged elevated interest-rate environment since H2 2023 and the slow recovery from the pre-pandemic remote-working arrangement necessitated the need for substantial retention of distributable income to reinvest capital into the asset portfolio, said the manager of the real estate investment trust on Tuesday (May 13).
While volatility is expected in 2025, the Reit is in a strong position to sign large leases, which will increase occupancy in the latter part of 2025, the manager added.
Net property income fell to US$17.7 million, a 14.9 per cent decrease from US$20.8 million the year before. On a same-store basis, net property income in Q1 2024 stood at US$19.1 million.
Revenue declined 9.4 per cent from US$33.6 million recorded in the year before. Revenue on a same-store basis in the year-ago period stood at US$34.2 million.
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Some 132,000 square feet (sq ft) of space was leased in Q1 2025. Rental reversions stood at 2.6 per cent, the manager said.
The return-to-office trend is gaining momentum in the United States, especially since US President Donald Trump’s executive order in January, which mandated a return to work for federal workers.
Major tech companies and banks such as Amazon, Goldman Sachs and Tesla now require employees in the United States to be in office five days a week.
Office supply remains tight, as deliveries and groundbreakings remain near all-time lows, JLL Research reported.
The management remains vigilant of potential implications amid the interplay of shifting tariff policies, the macro environment and interest rates.
Units of Prime US Reit closed 2.1 per cent or US$0.003 higher at US$0.145 on Tuesday.
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