Prime US REIT reported distributable income of US$11.1 million for the six months ended Jun 30, down 33.5 % year-on-year from US$16.7 million, as a higher distribution payout ratio and softer net property income offset largely stable top-line revenue.

Gross revenue slipped 0.2 % year-on-year to US$67.1 million, while the trust raised its distribution per unit to 0.50 US cent from 0.12 US cent a year earlier after increasing the payout ratio to 65 % from 10 % previously. The cash distribution of US$7.2 million is scheduled for payment on a date to be announced, the manager said.

By asset performance, net property income declined 6.7 % YoY to US$33.4 million, reflecting higher property expenses. Nevertheless, committed portfolio occupancy climbed for a fifth consecutive quarter to 84.1 %, supported by 90,000 sq ft of leases signed in 2Q2026 that achieved a positive rental reversion of 6.2 %.

Leasing momentum was driven by expansions at Village Center Station I in Denver, where Black & Veatch took an additional 12,000 sq ft on a 10-year lease, and by new take-ups at Tower 909 in Dallas and Promenade I & II in San Antonio. In total, 492,000 sq ft of committed space—equivalent to 11.7 % of occupied area—has yet to commence rent and will phase in mainly from 3Q2026, providing future revenue visibility.

The manager attributed the stronger DPU to the normalisation of the payout ratio and noted that nearly all leases carry 2–3 % annual rent escalations, underpinning organic growth. It expects to maintain a payout of at least 65 % as contracted cash flows build.

Chief executive officer Rahul Rana said the trust’s five-quarter occupancy growth streak and active leasing pipeline demonstrate sustained demand for its amenity-rich assets. He added that staggered commencements of recently signed leases should lift underlying cash property income over the coming quarters.

Looking ahead, the REIT will focus on backfilling remaining vacancies and capturing built-in rental escalations while monitoring operating expenses and capital costs in a higher-rate environment.