Revenue slid to US$34.1 million from US$40.2 million the year before

PRIME US Reit&rsquo s distributable income for the third quarter ended Sep 30, fell to US$8.5 million from US$14.7 million the year before, said its manager on Thursday (Nov 14) in a business update.

 

This was due to lower contribution from its properties Waterfront At Washingtonian, which saw lower occupancy as it underwent an asset enhancement initiative, and 101 South Hanley, where rental from new leases signed will only commence in 2025.

 

The manager also attributed the drop in distributable income to an absence of contribution from One Town Centre, which was divested in July 2024.

 

This is on top of higher finance expenses mainly due to incremental drawdowns on revolving credit facilities to fund capital expenditures and higher absolute interest cost, it added.

 

The real estate investment trust&rsquo s (Reit) revenue slid to US$34.1 million for Q3, from US$40.2 million the year before.

 

Net property income fell to US$18 million from US$23.4 million.

 

Excluding Waterfront at Washingtonian, the Reit&rsquo s overall portfolio occupancy stood at 83 per cent as at Sep 30. Its weighted average lease expiry stood at 4.4 years, up from four years in December 2023.

 

Leasing volume for Q3 rose 116 per cent from the previous quarter, and has been on an upward trend since the start of 2024, said its manager.

 

Rental reversion was positive at 6.5 per cent. This was mainly due to its 222 Main, Waterfront At Washingtonian, 101 South Hanley, and Promenade.

 

The trust&rsquo s aggregate leverage stood at 47.8 per cent based on the property funds appendix, and 45.4 per cent on a net cash basis. Borrowings stood at US$684.2 million, with a debt headroom of US$63 million.