Its DPU in FY2020 exceeds IPO forecasts by 3.6% to US6.94 cents.
Real estate investment trust PRIME US REIT posted US3.42 cents distribution per unit (DPU) in 2H 2020 and US6.94 cents in FY 2020, outperforming IPO forecasts by 2.1% and 3.6%, respectively.
The increase in PRIME’s distributional income and DPU 2H 2020 was linked to the higher net property income, lower interest costs and other trust expenses.
This was driven by contributions from Park Tower, acquired in February 2020, and partially offset by temporary declines in parking revenues.
“PRIME’s robust performance has been consistent since its listing which is a testament to our focus on maximising long-term Unitholder value,” PRIME chief executive officer and chief investment officer Barbara Cambon said.
“Our strategy to build a well-diversified portfolio in favourable US office markets, and our focus in the technology and established industry sectors, continues to underpin our success and demonstrates PRIME’s diversity and income resiliency in these uncertain times,” she added.
Cambon said PRIME targets inclusion in the FTSE EPRA NAREIT index, noting the company is well-positioned to grow through accretive acquisition opportunities.
PRIME reported its asset portfolio remained “highly resilient” throughout 2020 as collections for the full year and in the second half averaged 99% with minimal rental deferrals. It also has a portfolio occupancy of 92.4% as of December 2020.
Further, with the introduction of vaccines, the REIT firm sees return of tenants to office spaces in 2021 even as uncertainty lingers due to the coronavirus pandemic.
“As tenants gradually return to office, our experienced asset management team continues to employ technological solutions to assist existing tenants in office planning as well as to enhance PRIME’s leasing prospects,” Cambon said.
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