- Prime US REIT's 1H25 distributable income and DPU were within expectations at 49% and 46% of our FY25e forecast. 1H25 distributable income fell 29% y-o-y due to a 39% surge in interest cost from the Aug-24 loan refinancing, the divestment of One Town Center in July-24, and lower portfolio occupancy of 80.2% (1H24: 83.9%).
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- Prime US REIT has no refinancing requirements in FY25.
The Positive
Strong leasing momentum with large leases signed.
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- Another notable lease signed during the quarter was a 43k sqft lease with a leading global engineering and consultancy firm at Village Center Station I, increasing occupancy from 50.2% to 68.3%.
- In addition, a 61k sqft lease was signed with U.S. Attorney Office – District of Utah at 222 Main in July 25, bringing leased occupancy at that asset to 93% (1Q25: 79.6%).
- With large and longer-term leases signed, the WALE has increased to 4.7 years (1Q25: 4.3 years). However, cash contributions from these long leases are only expected to begin next year due to the rent-free periods.
Achieved positive rental reversions of 3.4% in 1H25
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