PRIME US Reit posted net property income of US$23.0 million (S$30.6 million) for the first fiscal quarter ended March, down 2 per cent from US$23.5 million in the corresponding quarter last year.

Gross revenue for the quarter rose 2.5 per cent to US$35.9 million from US$35.1 million, said the Reit in its key business and operational update on Tuesday.

Meanwhile, distributable income for Q1 fell 1.2 per cent to US$17.6 million from US$17.8 million in the year-ago period.

The Reit's manager said a "solid rent collection rate" of 99 per cent was maintained in the quarter, with minimal rent concessions made.

In terms of leasing activity in Q1, Prime US Reit booked a total of 80,084 sq ft leased at a positive rental reversion of 8.5 per cent. This includes 57,647 sq ft of long-term leases with a positive rental reversion of 9.5 per cent.

Over 80 per cent of the Reit's long-term leases were from renewals or the relocation of existing tenants. It had also signed leases with Extend Health, CBRE and FLS Transportation.

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Prime US Reit's portfolio has a weighted average lease expiry (Wale) of 4.3 years, and a valuation of US$1.41 billion. The Reit's gearing ratio stands at 33.8 per cent, with a debt headroom of US$290 million at a gearing covenant limit of 45 per cent.

The Reit's upcoming lease expiries are also well spread across its portfolio, which would therefore reduce any risks of single asset exposure.

The Reit has 12 assets across 11 primary markets, with no single asset contributing more than 16 per cent of total portfolio valuation and no single market contributing more than 13.5 per cent of total cash rental income.

In its update, Prime US Reit also noted that a significant majority of businesses across sectors are expected to progressively return to office in the coming months. Those expecting to permanently stop using office space constitute a "very small percentage", added the Reit manager.

"By leveraging technology, implementing protective measures and having close communications with tenants, we work closely with our experienced asset management team to provide a safe and healthy environment as tenants gradually return to the office," said Barbara Cambon, chief executive and chief investment officer of the manager of Prime US Reit.

"Coupled with prudent and proactive capital management, Prime is nimble and well-positioned to pursue accretive acquisitions and attract prospective tenants in growth industries."

Units in Prime US Reit closed at 85.5 US cents on Tuesday, up 0.6 per cent or 0.5 US cent.