Prime US REIT's 2H25 DPU rose to 0.49 US cents (2H24: 0.11 US cents), bringing full-year DPU to 0.61 US cents, more than doubling from 0.29 US cents in FY24. This was driven by a hike in payout ratios in 2H25 (effective payout of 55%) following improved leasing visibility and committed occupancy, which rose to 82.7% as at 4Q25.
- Read this at SGinvestors.io -
FY25 revenue and NPI declined 5.4% y-o-y and 8.8% y-o-y respectively, mainly due to lease expiries during the year. Portfolio valuation rose 3.5% y-o-y to US$ 1.4bn, while aggregate leverage improved 1.7ppt y-o-y to 45.0% (debt headroom at US$ 144mil).
Our views:
The US office market remains increasingly bifurcated, with demand concentrated in premium, amenity-rich Class A assets. The flight to quality trend persists, where tenants are increasingly prioritising high-quality, amenity-rich environments that support return-to-office mandates.
- Read this at SGinvestors.io -
There is also limited new supply in many of the submarkets, with minimal new construction expected over the next few years, resulting in favourable supply-demand dynamics.
Portfolio valuation up 3.5% y-o-y but uneven performance across the properties.
Read more at SGinvestors.io.
Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
Use Trust referral code PGKPSWAE to sign up NTUC Link or Trust Link Credit Card or open a Trust Bank Savings Account: ✨Earn up to S$1,000 cashback rewards 🎟!
