Prime US REIT hikes 2H2025 DPU 4.5x to 0.49 US cents as payout ratio rises; portfolio value up 3.5% with occupancy at 82.7%
Summary:
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Total 2H2025 distribution per unit was 0.49 US cents (2H2024: 0.11 US cents), after raising the distributable income payout ratio from 10% to 50% for 1 Jul–5 Oct 2025 and to 65% thereafter on stronger cash‑flow visibility.
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Portfolio valuation increased 3.5% year on year to US$1.4 billion, while aggregate leverage improved to 45.0% from 46.7%, giving about US$144m of debt headroom under MAS limits.
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PRIME completed roughly 680,000 sq ft of leasing in FY2025 at a positive rental reversion of 5.6%, lengthening WALE to 5.6 years and lifting committed occupancy to 82.7% as at 31 December 2025 (2024: 80.0%).
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A key 15‑year, 121,000 sq ft lease with Sacramento County District Attorney’s Office at Park Tower raised leased occupancy there to 89.9%, following an earlier ~120,000 sq ft 11‑year lease at Waterfront At Washingtonian.
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Management sees U.S. office demand recovering, citing JLL data on post‑pandemic‑high leasing volumes, stronger ‘flight‑to‑quality’ absorption and constrained Class A supply, and plans to keep increasing distributions “in a measured way” as new leases ramp up.