- Prime US REIT's 1Q25 net property income and distributable income were within expectations at 23% and 25% of our FY25e forecast. Distributable income declined 30% y-o-y due to lower portfolio occupancy (1Q25: 78.9% vs 1Q24: 80.9%), the divestment of One Town Center in July 24, and higher finance expenses.
- - Read this at SGinvestors.io -
- Prime US REIT has no refinancing requirements in FY25.
- Assuming a 10% payout ratio, the current Prime US REIT's share price implies an FY25e DPU yield of 1.8%.
The Positive
Leasing momentum continues.
- - Read this at SGinvestors.io -
- Two large leases (>100k sqft each) are expected to be signed in the coming months, one at Waterfront at Washingtonian and the other at Park Tower, which should increase portfolio occupancy to ~85% by end-2025, with cash rental contribution starting FY26.
- Prime US REIT is targeting long-term leases, and portfolio WALE is expected to rise from 4.3 years as these large leases are signed on 10-year terms.
Strong balance sheet supports leasing efforts.
- Read more at SGinvestors.io.
