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Prime US Reit posts Q3 DPU of 1.38 US cents
KBS Realty Advisors' Prime US Reit on Tuesday posted a distribution per unit (DPU) of 1.38 US cents for its third quarter, higher than its forecast of 1.31 US cents for the period, on the back of stronger rental income.
This came as Q3 income available for distribution reached US$12.8 million, 5.4 per cent higher than the forecast for the quarter.
For the three months ended Sept 30, gross revenue was 2.3 per cent higher at US$27.1 million than the forecast, thanks to higher rental income and recoveries income.
Net property income climbed 2.8 per cent to US$17.9 million from the forecast.
The forecast numbers for the period from July 19, 2019 to Sept 30, 2019 were derived by pro-rating the forecast figures for a nine-month profit forecast that was disclosed in the Reit's prospectus.
Its properties include 11 Class A office properties in the US with an aggregate net lettable area (NLA) of about 3.4 million square feet.
Prime's portfolio occupancy was 97 per cent as at Sept 30, and 98.3 per cent of its leases have built-in rental escalations. Weighted average lease expiry by NLA was 4.9 years for the portfolio.
In its outlook, Prime noted that the US office market demand remained healthy despite the trade tensions. For the third quarter, the national average occupancy rate remained stable at 90.2 per cent, while the 12-month overall rent growth was 2.4 per cent as at end-September.