Prime US REIT NPI up 6% to $135.21m in FY2021

Its distributable income also increased by 4.9% to $101.52m for FY2021.

KBS US Prime Property Management Pte. Ltd., manager of Prime US REIT, revealed an increase to the group’s net property income (NPI) by 6% to $135.21m (US$100.7m) in the financial year 2021.

The same period also saw a 4.9% increase in distributable income to reach $101.52m (US$75.6m), with the performance being attributed to new acquisitions.

However, despite this positive trend, a 2.3% dip in the group’s distribution per unit to 6.78 cents was seen.

The financial results for the second half (H2) of 2021 were also released. NPI for the period was up 14.3% year-on-year (YoY) to $73.04 (US$ 54.4m). Distributable income was up 11% YoY to $53.97m (US$ 40.2m).

“We have a strong balance sheet and access to capital which underpin our growth strategies as we scale our portfolio further into strategic markets and sectors, and as we address evolving tenant needs through asset enhancement initiatives,” explained Barbara Cambon, CEO, CIO, KBS US Prime Property Management Pte. Ltd.

Strong positive rental reversions, and over 99% rent collections were seen over the  previous half of the year as well. Leasing volume for H2 2021 was also more than double on a YoY basis with 282,199 sq. ft. leased, putting FY2021 leasing volumes to 414,632 sq. ft. at a positive rental reversion of 14.1%.

New leases, meanwhile, made up 21% of total leasing volume for FY2021. Around two thirds of the 95,123 sq. ft. leased in 4Q 2021 were renewals, while 31,083 sq. ft. were nw leases that mitigate expiries and downsizing. Leasing for that period included industry sectors such as legal, finance, government, IT, real estate and general industries.

Meanwhile, a portfolio occupancy rate of 90.3% was announced well, along with a WALE of 4.2 years. Upcoming lease expiries are also spread across the portfolio, with the largest single asset expiry for FY2022 at 2.7% of portfolio CRI.  

The Group’s gearing also stayed at 37.9%, with available credit facilities in excess of $308.78m ( US$ 230m) and a debt headroom of $544.79m (US$ 405.8m).