Prime US REIT raises occupancy to 83.1% and lifts net property income in 1Q2026

SGX Filings
May 12

Prime US REIT (OXMU) reported that committed portfolio occupancy increased for the fourth straight quarter to 83.1% as at Mar, 31 2026, while net property income for 1Q2026 rose 3.3% quarter-on-quarter to about 23 million Singapore dollars.

The trust completed approximately 99,000 square feet of leasing in the quarter, achieving a positive rental reversion of 4.0%. An additional 463,000 square feet of leases—equivalent to 11% of current committed occupancy—are set to begin contributing rent from 3Q2026 on a staggered schedule, supporting future cash flow growth. Portfolio weighted average lease expiry stood at 5.6 years, and almost all leases include annual rent escalations of 2% to 3%.

Distributable income for the period amounted to roughly 9 million Singapore dollars, reflecting higher occupancy and the end of earlier rent-free periods. Aggregate leverage was stable at 45.2% as at Mar, 31 2026.

The manager maintained a 65% distribution payout ratio implemented in 4Q2025, following the improvement in recurring cash flows. For FY2025, distribution per unit rose to 0.61 US cents, more than double the 0.29 US cents recorded in FY2024.

JLL’s U.S. Office Market Dynamics 1Q2026 report cited a 7.6% year-on-year increase in gross leasing activity and a third consecutive quarter of positive net absorption, with new office supply at multi-decade lows—trends the manager believes support the outlook for Prime US REIT’s portfolio positioned in 12 key U.S. office markets.

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