Prime US Reit DPU down 3.4% to US$0.0655

PRIME US Reit posted a 2 per cent year-on-year increase in distributable income to US$77.2 million for the financial year ended Dec 31, 2022, its manager said on Wednesday (Feb 8).

This comes despite a 2.7 per cent dip in net property income (NPI) to US$97.9 million for the period, its latest financial statements showed.

For the second half of FY2022, distributable income fell 10.8 per cent to US$35.8 million, while NPI dropped 13.3 per cent to US$47.1 million.

Accordingly, distribution per unit for FY2022 slipped 3.4 per cent to 6.55 US cents.

The Reit manager noted that property operating expenses were 16.1 per cent higher at US$65.1 million in FY2022, largely due to contribution from One Tower Center and Sorrento Tower and higher physical occupancy.

Occupancy in the second half held steady at 89.1 per cent, compared with the last two quarters.

Leasing activities remain strong with 142,800 square feet of leases executed at a positive rental reversion of 20.2 per cent in the fourth quarter, said the manager.

Gross revenue for the full year rose 4 per cent to US$163 million, despite a 4.1 per cent decrease to US$81.2 million for H2.

As at Dec 31, its total assets stand at US$1.6 billion. Net asset value per unit was US$0.75.

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The manager said that return-to-office physical attendance has been increasing gradually in recent months, albeit unevenly across markets, and is anticipated to pick up speed with several large employers’ office re-entry guidelines effective from 2023.

Units of Prime US Reit closed 0.9 per cent or US$0.005 lower at US$0.525 on Wednesday, before the results release.