Prime US REIT’s distributable income slips 2.1% YoY to US$28.6m in 2H23

The REIT attributed the decline to higher finance costs.

The available distributable income of SGX-listed Prime US REIT declined by 2.1% YoY to US$28.6m in 2H23.

In its latest financial report, the REIT attributed its lower distributable income to “higher finance cost to fund capital expenditures in relation to building improvements and tenant incentives to drive leasing activity.”

Despite recording a lower income, the REIT declared a distribution of 0.25 US cents or approximately 10% of the distributable income for 2H23.

According to the REIT’s manager, the cash distribution will balance the REIT’s “objectives to preserve a substantial proportion of distributable income to meet PRIME’s capex needs and provide creditors with the assurance that PRIME will reinvest cash flows in the business alongside its lenders.”

In addition to the cash distribution, the REIT will also be issuing new units to unitholders based on one new unit for every 10 existing units held as of a date and time to be determined by the manager.