Prime US REIT’s NPI drops 7.2% YoY to US$23.6m in Q1

Given the drop, the REIT also posted a lower distributable income of US$14.9m.

SGX-listed Prime US REIT recorded a 7.2% YoY lower net property income of US$23.6m in Q123, its latest business update showed.

The REIT’s gross revenue also declined in Q1, dropping 1.7% YoY to US$40.2m.

Given the decline in income and revenue, the REIT posted a 22.5% YoY lower distributable income of US$14.9m for the quarter.

In a bourse filing, the REIT attributed the decline in distributable income to four factors: an increase in finance expenses due to higher rates on unhedged debt; the difference in amortised lease termination income contributing to distributable income in Q122 vs Q123; higher property operating expenses across various categories as employees increase return-to-office; and lower gross revenue, excluding straight-line rent adjustments, led by occupancy decline.