Prime US REIT reports 2H21 net property income rose 14 percent

U.S. five dollar currency notes bills; taken September 2018.

Prime US REIT reported Wednesday its second half net property income rose 14.3 percent on-year to US$54.36 million, boosted by the acquisitions of One Town Center and Sorrento Towers in July.

In addition, the REIT said it received termination income from WeWork leases.

Gross revenue for the six months ended 31 December increased 17 percent on-year to US$84.67 million, the REIT said in a filing to SGX.

The available distribution per unit (DPU) was 3.45 U.S. cents, up 0.9 percent from 3.42 U.S. cents in the year-earlier period, the filing said.

For the full year, Prime US REIT reported net property income of US$100.70 million, up 6 percent on-year, on gross revenue of US$156.74 million, up 9.2 percent on-year. The full-year available DPU was 6.78 U.S. cents, down 2.3 percent from 6.94 U.S. cents in 2020, the REIT said.

Portfolio occupancy was stable at 90.3 percent, the REIT said.

Rental reversions were strong at positive 14.1 percent, while rent collections were at more than 99 percent throughout the previous six quarters despite the pandemic-impacted environment, the REIT said.


The REIT issued an upbeat outlook, citing the U.S. economic recovery.

Barbara Cambon, CEO and chief investment officer of the REIT’s manager, said the strategy of targeting key non-gateway markets supported the strong performance.

“As job growth and recent leasing activity indicate a nascent recovery and tenants’ confidence in the return to office, we continue to identify market and asset attributes that employers seek, to best support their long-term workspace needs,” she said in the statement.

“We have a strong balance sheet and access to capital which underpin our growth strategies as we scale our portfolio further into strategic markets and sectors, and as we address evolving tenant needs through asset enhancement initiatives,” she said.