Prime US REIT · SGX:OXMU
Prime US REIT — FY2020 Earnings Presentation
20 slides from Prime US REIT's earnings presentation, Feb 17, 2021
Slide 1: FY 2020 Financial Results
FY 2020 Financial Results 17 February 2021 FY 2020 RESULTS | FEBRUARY 2021 1
Slide 2: Important Notice
Important Notice This document may contain forward-looking statements that involve assumptions, An investment in Units is subject to investment risks, including the possible loss of risks and uncertainties. Actual future performance, outcomes and results may the principal amount invested. Holders of
Slide 3: Content
Content 04 Key Highlights 07 Financial Performance 09 Portfolio Update 14 Outlook FY 2020 RESULTS | FEBRUARY 2021 3
Slide 4: Delivering Performance and Growth
Delivering Performance and Growth FY 2020 DPU FINANCIAL RESILIENT ROBUST LEASING POSITIONED TO OUTPERFORMED FLEXIBILITY INCOME DESPITE COVID GROW IPO FORECAST1 • 225,222 sq ft • Low gearing of • High portfolio • Acquired Park By 3.6% leased in FY 2020 Tower for 33.5% occupancy 92.4% • • Rental rever
Slide 5: FY 2020 DPU Outperformed IPO Forecast by 3.6%
FY 2020 DPU Outperformed IPO Forecast by 3.6% 2H 2020 FY 2020 1 July to 31 December 2020 1 January to 31 December 2020 Actual Forecast1 Variance Actual Forecast Variance (US$) (US$) (%) (US$) (US$) (%) Net Property Income 47,539 44,089 +7.8 94,989 88,178 +7.7 Distributable Income to 36,200 31,185 +1
Slide 6: Diversified Income
Diversified Income NPI by Property Park Tower Tower I at Emeryville ▪ Diversified portfolio with no one property 9.8% 9.0% 171 17th Street contributing more than 15.0% to Net 222 Property Income (NPI) 12.9% Main 15.0% Reston Square ▪ 99% Rent Collection and minimal 4.2% Village Center 4.3% Station I
Slide 7: Strong Financial Position
Strong Financial Position 100% payout of distributable 31 December 2020 income (US$ M) Investment Properties 1,405.2 Deep value in share price relative to Total Assets 1,446.8 NAV and underlying Borrowings 480.41 business strengths Total Liabilities 539.1 Net Assets attributable to Unitholders 907.8
Slide 8: Ample Liquidity and Debt Headroom to Support Growth
Ample Liquidity and Debt Headroom to Support Growth Tenant 31 Dec 2020 31 Dec 2019 Well Staggered Debt Maturities 33.5% 33.7% 160 160 Gearing 33% 33% 160 Interest Coverage1 5.8x 5.1x 120 105 % Fixed Rate 89.8% 88.0% million 22% US$ 80 60 Average Debt Maturity 4.1/4.6 years2 5.2 years 12% Billions Av
Slide 9: Diversified Markets
• Focus on non-gateway cities Diversified Markets • 9 of 12 PRIME Properties in Top 25 Tech Markets • Diversified across 11 markets Top 25 Tech State Metro Property City Rank1 California Sacramento Park Tower *San Fran/Oakland Tower I at Emeryville 2 Utah *Salt Lake City 222 Main 16 Colorado *Denver
Slide 10: Leasing Momentum Remains Strong
Leasing Momentum Remains Strong FY 2020 to 225,222 sq ft in FY 2020 at a positive rental reversion of 7.2% - Including 59,505 sq ft in 4Q 2020 with positive rental reversion of 8.3% Over 60% was renewed/expanded by existing tenants and new tenants largely from established and technology sectors - Ke
Slide 11: Solid Markets with Rental Reversion Opportunities
Solid Markets with Rental Reversion Opportunities Annual In Potential Annual Asking Name of Property NLA (sf) Place Rent Rental WALE Occupancy 2021 Lease Rent (US$) (US$) Reversion Expiry by CRI1 Tower I at Emeryville 222,606 $53.54 $54.60 2.0% 5.8 94.5% 0.1% • Portfolio in place 222 Main 433,346 $3
Slide 12: Balanced Industry Sector Diversification
Balanced Industry Sector Diversification Top 10 Tenants Tenant Industry Credit Rating Property Leased sq ft % of Portfolio CRI1 13.2% Charter Village Center Other Communications Moody's: Ba1 420,151 9.0% Communications Station I & II 15.7% Finance Moody's: A3 Goldman Sachs Finance S&P: BBB+ 222 Main
Slide 13: Property Valuations Hold Steady
Property Valuations Hold Steady 31 December 2020 31 December 2019 31 December 2020 Name of Property % Change Valuation (US$’000) Valuation (US$’000) Implied Cap Rate Tower I at Emeryville 115,700 125,800 (8.0) 7.2% 222 Main 224,000 220,000 1.8 5.8% Village Center Station I 86,400 88,500 (2.4) 4.2% L
Slide 14: Portfolio Occupancy Exceeds U.S. Class A Office Average
Portfolio Occupancy Exceeds U.S. Class A Office Average Property Occupancy vs. Submarket Occupancy 100.0% 94.5% 94.9% 100.0% 97.6% 97.5% 100.0% 94.7% 100.0% 94.9% 92.6% 93.2% 92.6% 89.2% 89.4% 89.9% 87.5% 90.0% 86.2% 83.7% 81.8% 81.8% 81.8% Portfolio 80.0% 77.8% 75.2% Occupancy: 70.0% 65.1% 92.4% 60
Slide 15: Limited Supply and Positive Rent Growth Forecast
Limited Supply and Positive Rent Growth Forecast Projected 12 Under Metro RBA Last 12 Months Delivery State Metro Months Rent Construction (mil sq ft) Rent Growth (%) Date Growth (%) (‘000 sq ft) 100% California Sacramento 10.2 1.9 2.9 1,198 1Q 22 - 2Q 22 Preleased San Fran/Oakland 12.6 2.1 1.5 0 NA
Slide 16: Outlook for U.S. Office
Outlook for U.S. Office Cushman and Wakefield US Office Sector1 outlook report included a glide path to recovery analysis that included: • Following rollout of vaccine, robust economic growth with real GDP growing in the 5% range for most of 2021 • The U.S. will return to peak office-using employmen
Slide 17: 2021: Strong Foundation, Positioned to Grow
2021: Strong Foundation, Positioned to Grow Operational Focus Grow through Acquisitions • Maximize Net Property Income • Target high growth markets driven by • Continue to execute on leasing plan technology and established industry sectors • Work closely with tenants to manage • Focus on Innovation
Slide 18: PRIME Opportunity Markets
PRIME Opportunity Seattle/Bellevue Markets Portland Minneapolis Boston Pittsburgh Chicago Sacramento Salt Lake City Philadelphia San Francisco Bay Area Emeryville Washington DC (MD) Denver Kansas City Washington DC (VA) Silicon Valley/San Jose St. Louis Raleigh Los Angeles Nashville Charlotte Orange
Slide 19: Thank You
Thank You www.primeusreit.com +65 6951 8090 1 Raffles Place #40-01 One Raffles Place Singapore 048616 www.primeusreit.co www.primeusreit.co m m
Slide 20: PRIME Quick Facts
PRIME (SGX: OXMU) us$836m us$72.1m Market Cap1 FY 2020 Distributable Quick Facts 8.8% Income 33.5% High quality portfolio of prime office properties, Distribution Yield2 Gearing Ratio diversified across key U.S. office markets us$1.405b 12 Valuation3 Prime U.S. Office Properties 2 Crosspoint 1 A 92.