- Prime US REIT’s 2H distributable income (DI) were below expectations, but positive surprises came from an increase in its dividend payout ratio and higher portfolio valuations.
- - Read this at SGinvestors.io -
- US office fundamentals are firmly shifting in favour of high-quality Grade-A office assets, for which Prime US REIT remains a key proxy – it is trading at a cheap 0.4x FY26F P/BV.
Portfolio occupancy expected to ramp up to a high ~80% by end-2026.
- Its overall occupancy rate rose to 82.7% (3Q25: 80.7%), mainly from the signing of a new 15-year lease for ~121k sqf of space at Park Tower, Sacramento.
- - Read this at SGinvestors.io -
- On the flip side, occupancy challenges remain at 171 17th Street and Tower 1 at Emeryville, which has been impacted by the downturn in the biotechnology sector. Rent reversion (FY25) was stronger, at +5.6% (FY24: +1.8%).
Higher DI flow-through is expected from 2H26 onwards.
- Read more at SGinvestors.io.
