Prime Us Reit · SGX:OXMU
Prime Us Reit — Q3 2024 Earnings Presentation
36 slides from Prime Us Reit's earnings presentation, Nov 14, 2024
Slide 1: 3Q2024 Key Business & Operational Updates
3Q2024 Key Business & Operational Updates 14 November 2024 13 Class A Freehold U.S. Offices Strategically Focused on Non -Gateway Cities OPERATIONAL UPDATE | JULY 2021
Slide 2: Important Notice
Important Notice This document may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward- looking statements as a result of a number of risks, uncertainties and assum
Slide 3: Content
Content 222 MAIN 171 17TH STREET VILLAGE CENTER PARK TOWER SORRENTO TOWERS 3Q2024 Highlights 4 Salt Lake City, Utah Atlanta, Georgia STATION II Denver, Colorado Sacramento,California San Diego, California Portfolio Update 10 Financial Update 16 Current Market 18 TOWER I EMERYVILLE CROSSPOINT San Fra
Slide 4: 3Q2024 Highlights
3Q2024 Highlights Waterfront At Washingtonian, Washington D.C. (Suburban Maryland) Asset Enhancement Initiative Completed in October 2024 3Q2024 | NOVEMBER 2024 4
Slide 5: 3Q2024 Key Highlights as of September 2024
3Q2024 Key Highlights as of 30 September 2024 U.S. Office Leasing Capital @ PRIME Leasing Volume1 Portfolio Occupancy Completed US$550m Financing +0.4% +24.0% 83.0%2 US$400m Term Loan and US$150m Committed Revolver 3Q QoQ 3Q YoY Committed revolver line allows for better prospect Leasing Volume engag
Slide 6: Strategic Divestment of One Town Center
Strategic Divestment of One Town Center ✓ Strengthened PRIME’s financial and liquidity position, provided impetus to leasing recovery ✓ Achieved deleveraging objective with the paring down of $45 million debt ✓ Excess cash proceeds provided liquidity to reinvest into portfolio to enhance portfolio v
Slide 7: Completion of US$550 million Financing
Completion of US$550 million Financing Reinforce Financial Position & Flexibility to Reinvest in Assets ✓ No refinancing obligation before 2026 ✓ Completion of US$550 million new financing is a testament to lenders’ confidence in the quality of Prime US REIT’s assets Gross Borrowings Cash at Bank Ag
Slide 8: Completed Asset Enhancement Initiative in October 2024
Completed Asset Enhancement Initiative in October 2024 Tenant Lounge Tenant Cafe Waterfront At Washingtonian Reimagined. Redefined. ✓ “One Washingtonian Center” rebranded as “Waterfront At Washingtonian” Wellness Room ✓ Tenant lounges – one formal servicing the conference center and one more open fo
Slide 9: Completed Asset Enhancement Initiative in October 2024
Completed Asset Enhancement Initiative in October 2024 Lobby Area Rebranded as “Waterfront At Washingtonian” Reimagined. Redefined. One of the most desirable office assets in the area ✓ Post-completion of rejuvenation, leasing interests and conversations have increased ✓ Leased occupancy for Waterfr
Slide 10: Portfolio Update
222 Main, Park Tower, 222 Main, Salt Lake City Sacramento Salt Lake City Portfolio Update 171 17th Street, Atlanta 3Q2024 | NOVEMBER 2024 10
Slide 11: Positive Leasing Momentum
Positive Leasing Momentum Leasing Volume Portfolio Occupancy Rental Reversion +116% +73% 83.0%1 +6.5% 3Q QoQ 9M YoY (Exclude Waterfront At Washingtonian) 3Q2024 Occupancy % Changes in 3Q2024 Positive rental reversion mainly from 222 Main, Waterfront At Washingtonian, 101 South Hanley, Positive Leasi
Slide 12: Focus on Occupancy: Backfill Gaining Traction
Focus on Occupancy: Backfill Gaining Traction % ▪1 Tower 1 Emeryville : Increased interests evidenced from more Leased Leased prospective tenants touring the asset, and for some looking to Contribution Submarket Properties (As at 30 September 2024) Occupancy Occupancy Change by Carrying Occupancy1 r
Slide 13: Class A Quality Assets
Class A Quality Assets A Notch Above Class A Office Buildings1 PRIME’s Portfolio The most prestigious of Class A buildings buildings competing is primed to capture the Tenant Lounge at The 101 for premier office tenants’ demand for users with rents high-quality and above average for well-amenitized
Slide 14: Lease Expirations
Lease Expirations ✓ WALE increased to 4.4 years (from 4.0 years in December 2023) % Lease expiry Properties (As at 30 September 2024) WALE remaining in Lease Expiry Profile (years) 2024 by CRI[b] As at 30 September 2024(a,b) 222 Main (Salt Lake City) 3.0 0.5% 171 17th Street (Atlanta) 5.0 1.1% Weigh
Slide 15: Sector Diversification Adds to Resiliency
Sector Diversification Top 10 Tenants by Cash Rental Income (CRI) Adds to Resiliency Tenant Industry Property Leased % of Portfolio sf CRI Communications Village Center Charter Communications 419,881 8.8% and Information Station I & II Others Finance 18.8% 18.6% Goldman Sachs Finance 222 Main 176,41
Slide 16: Financial Update
Tower 909, Sorrento Towers Dallas, Texas Financial Update Tower One Emeryville Reston Square 3Q2024 | NOVEMBER 2024 16
Slide 17: 3Q2024 Financial Update
3Q2024 Financial Update US$‘000 3Q2024 3Q2023 9M2024 9M2023 Gross Revenue 34,142 40,228 107,627 119,695 Net Property Income 18,033 23,389 58,591 70,556 Income Available for 8,503 14,722 31,838 43,949 Distribution Lower distributable income mainly due to: ▪ lower contribution from ❖ Waterfront At Was
Slide 18: Current Market Environment
Current Market Environment Real GDP Growth ▪ US economy grew 2.8% in 3Q20241. 3Q 20241 ▪ CPI inflation rate eased by 2.4%2 YoY in September 2024. Personal 2.8% consumption expenditure (PCE) price index was up 2.1%2 YoY in September 2024, underscoring the improving inflation environment. Inflation Ra
Slide 19: U.S. Office Market Q3 2024
A. Leasing activity maintained strong momentum from Q2 U.S. Office Market B. Groundbreakings Q3 2024 remain near all-time lows C. Availability of new supply decline as leasing pick up D. Overall inventory losses are accelerating Sorrento Towers San Diego, California Life Sciences and Technology Cent
Slide 20: U.S. Office Market Q3 2024: Leasing Activity
U.S. Office Market Q3 2024 A Leasing Activity Maintained Strong Momentum From Q2 Quarterly Leasing Activity (million s.f.) -19% Trailing 4 quarters 80,000,000 vs. pre-pandemic 70,000,000 57.1 million s.f. 60,000,000 (Pre-pandemic average excl. coworking) +0.4% Q-o-Q 50,000,000 40,000,000 30,000,000
Slide 21: U.S. Office Market Q3 2024: Groundbreakings
U.S. Office Market Q3 2024 B Groundbreakings Remain Near All-Time Lows 14 U.S. Office Groundbreaking Volume (million s.f.) 12 10 8 6 4 2 0 2019 2020 2021 2022 2023 2024 3Q2024 | NOVEMBER 2024 Source: JLL Research: U.S. Office Market Dynamics 2024 Q3 21
Slide 22: U.S. Office Market Q3 2024: New Supply Availability
U.S. Office Market Q3 2024 C Availability of New* Supply Decline 22.2% YoY As Leasing Picks Up Direct Available Space (million s.f.) * Available supply of office <10 years old, excluding sublease Existing supply Construction pipeline 120 YoY 100 change -22.2% 80 60 40 20 0 2019 2020 2021 2022 2023 2
Slide 23: U.S. Office Market Q3 2024: Inventory Losses
U.S. Office Market Q3 2024 D Overall Inventory Losses Accelerating, Trend to Continue Total Inventory (Added or Removed) million s.f. + Groundbreaking - Inventory Removal +31.1 +23.1 +14.7 +2.4 -17.2 -26.4 2019 2020 2021 2022 2023 2024 3Q2024 | NOVEMBER 2024 Source: JLL Research: U.S. Office Market
Slide 24: Management's Near-term Plan
Management’s Near-term Plan 2022-2024 2024 2025-2027 Strengthened balance sheet Manage Growth 1. Amid Global rate hike liquidity available for executing Maintain quality of assets ▪ Commercial real large leases Increase occupancy estate valuations under pressure 1. Completed US$550million Financing
Slide 25: Thank You
Thank You info@primeusreit.com +65 6951 8090 www.primeusreit.com Crosspoint 1 Raffles Place Philadelphia, #40-01 One Raffles Place Pennsylvania Singapore 048616
Slide 26: PRIME US REIT
PRIME US REIT Diversified Income Provides Stability As at 30 September 2024 Geographic Suburban Maryland Suburban Virginia High Quality Portfolio of Prime Office (Washington DC) (Washington DC) Diversification Properties Diversified Across Key U.S. CRI by Primary Market San Antonio (TX) San Francisc
Slide 27: PRIME US REIT
PRIME US REIT Financially Strong and Committed Sponsor & Strategic Investors2 KBS Asia Partners1 ("KAP", Sponsor of PRIME) KAP and affiliated KBS entities1 have Global asset manager and Backed by extensive experience in US Office operator with a total Mapletree Real Estate portfolio of more than Inv
Slide 28: Properties Highlights
Appendices 222 MAIN 171 17TH STREET VILLAGE CENTER PARK TOWER SORRENTO TOWERS Properties Salt Lake City, Utah Atlanta, Georgia STATION II Denver, Colorado Sacramento,California San Diego, California Highlights TOWER I EMERYVILLE CROSSPOINT TOWER 909 VILLAGE CENTER San Francisco Bay Area, Philadelphi
Slide 29: 222 Main and 171 17th Street
Salt Lake City Atlanta 222 MAIN Utah 171 17TH STREET Georgia 99.3% US$183.5M 13.6% 433,346 73.5% US$173.0M 12.8% 510,268 Occupancy Contribution Net Lettable Occupancy Contribution Net Lettable C a r r y i n g Value C a r r y i n g Value (By Carrying Value) A r e a (sq ft) (By Carrying Value) A r e a
Slide 30: Village Center Station I and II
Denver Denver VILLAGE CENTER STATION I Colorado VILLAGE CENTER STATION II Colorado 49.9% US$71.3M 5.3% 241,846 100% US$145.9M 10.8% 325,576 Occupancy Contribution Net Lettable Occupancy Contribution Net Lettable C a r r y i n g Value C a r r y i n g Value (By Carrying Value) A r e a (sq ft) (By Carr
Slide 31: Park Tower and Sorrento Towers
Sacramento San Diego PARK TOWER California SORRENTO TOWERS California 68.3% US$143.5M 10.6% 489,171 96.3% US$125.5M 9.2% 296,327 Occupancy Contribution Net Lettable Occupancy Contribution Net Lettable C a r r y i n g Value C a r r y i n g Value (By Carrying Value) A r e a (sq ft) (By Carrying Value)
Slide 32: Tower I at Emeryville and Crosspoint
TOWER I San Francisco Bay Area Philadelphia CROSSPOINT AT EMERYVILLE California Pennsylvania 74.2% US$105.4M 7.8% 222,606 100.0% US$98.3M 7.3% 272,360 Occupancy Contribution Net Lettable Occupancy Contribution Net Lettable C a r r y i n g Value C a r r y i n g Value (By Carrying Value) A r e a (sq f
Slide 33: Tower 909 and 101 South Hanley
Dallas St. Louis TOWER 909 Texas 101 SOUTH HANLEY Missouri 92.4% US$76.9M 5.7% 374,251 90.3% US$69.1M 5.1% 360,505 Occupancy Contribution Net Lettable Occupancy Contribution Net Lettable C a r r y i n g Value C a r r y i n g Value (By Carrying Value) A r e a (sq ft) (By Carrying Value) A r e a (sq f
Slide 34: Promenade I & II and Waterfront At Washingtonian
San Antonio WATERFRONT AT Suburban Maryland PROMENADE I & II Texas WASHINGTONIAN Washington D.C. 71.8% US$71.1M 5.3% 205,773 40.2% US$61.6M 4.5% 325,455 Occupancy Contribution Net Lettable Occupancy Contribution Net Lettable C a r r y i n g Value C a r r y i n g Value (By Carrying Value) A r e a (sq
Slide 35: Reston Square
Suburban Virginia RESTON SQUARE Washington D.C. 61.1% US$26.6M 2.0% 139,413 Occupancy Contribution Net Lettable C a r r y i n g Value (By Carrying Value) A r e a (sq ft) Reston Square is a 6-storey Class A multi-tenanted office building located in the Reston-Herndon submarket of Suburban Virginia (R
Slide 36: Prime US REIT