Prime US REIT's NPI up 6.7% in Q1

The outpermance is driven by acquisition of Park Tower in Sacramento.

Prime US REIT's net property income (NPI) exceeded IPO projections by 6.7% to $33.27m in Q1 from the projected $31.19m, the company announced. Likewise, gross revenue also inched up 4.1% to $49.61m over the same period.

Meanwhile, distributable income also surpassed the projection with $24.9m during the quarter, a 12.9% increase from the expected $22.06m.

Also read: https://sbr.com.sg/commercial-property/news/prime-us-reit-raise-16804m-private-placement

The firm stated that the outperformance is primarily driven by the acquisition of Park Tower in Sacramento on 24 February, higher NPI from the IPO portfolio, and lower finance and other trust expenses.

The company maintained a debt maturity profile and a gearing ratio of 33.7% with interest rates fixed on 89.1% of its debt, removing any near-term interest rate risk and an interest coverage of 5.8 times.

The total outstanding debt amounting to $690.47m has a weighted average debt to maturity of 4.8 years with no near-term refinancing risk.

Prime has a high portfolio occupancy of 94.9%, and approximately 98.0% of leases have rental escalations. The weighted average lease expiry is 4.9 years, with no more than 6.0% of leases by net lettable area expiring in 2020

No single geographical market contributes more than 13.5% of total cash rental income, whilst no single asset makes up more than 15.5% of Prime’s portfolio by valuation.