Prime Us Reit · SGX:OXMU
Prime Us Reit — Q1 2024 Earnings Presentation
19 slides from Prime Us Reit's earnings presentation, May 8, 2024
Slide 1: 1Q2024 Key Business & Operational Updates
1Q2024 Key Business & Operational Updates 8 May 2024 14 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 assump
Slide 3: Portfolio of properties
222 MAIN 171 17TH STREET VILLAGE CENTER PARK TOWER SORRENTO TOWERS Salt Lake City, Utah Atlanta, Georgia STATION II Denver, Colorado Sacramento,California San Diego, California TOWER I EMERYVILLE CROSSPOINT ONE TOWN CENTER TOWER 909 VILLAGE CENTER San Francisco Bay Area, Philadelphia, Pennsylvania B
Slide 4: 1Q2024 Highlights
1Q2024 Highlights Reinvesting in Portfolio. Driving Long-term Value Recovery. U.S. Office Market Positive Leasing 1 2 Momentum 3 Capital Management ▪ Demand1 for office space continues ▪ 1Q2024 leasing more than doubled ▪ Aggregate leverage was 48.1% as at 31 steady path of recovery 1Q2023, but lowe
Slide 5: 1Q2024 Financial Update
1Q2024 Financial Update 222 Main Salt Lake City US$‘000 1Q2024 1Q2023 Variance Gross Revenue 37,106 40,159 (7.6%) Net Property Income 20,836 23,602 (11.7%) Income Available For Distribution 11,983 14,883 (19.5%) Income available for distribution for 1Q2024 was 19.5% lower y-o-y at US$12.0 million ma
Slide 6: Capital Management
Capital Management as at 31 March 2024 Debt Maturity Profile (US$’m) Undrawn & US$330m of the Gross facilities hedged Available till June 2026 Borrowings Facilities US$699.9m 480 US$164.7m 45 70 105 Debt (3) (4) Aggregate Interest 2024 2025 2026 2027 2028 2029 Headroom Leverage(1) Coverage(1) to 50%
Slide 7: 1Q2024 Leasing Remain Active
1Q2024 Leasing Remain Active ▪ 7 of PRIME’s 14 assets are over 90% leased, of which 5 are c. 95% or higher. % Contribution by PRIME’s Submarket Properties (As at 31 March 2024) Carrying Value Occupancy Occupancy1 ▪ Positive leasing momentum – over 171.3k sf of leases executed in 1Q2024 (equivalent t
Slide 8: Lease Expirations
Lease Expirations % Lease expiry Properties (As at 31 March 2024) WALE remaining in 2024 Lease Expiry Profile (years) by CRI[b] As at 31 March 2024(a,b) By NLA By CRI 222 Main (Salt Lake City) 3.0 0.5% Weight Average Lease Expiry (WALE) : 4.2 years 26.4%25.8% 171 17th Street (Atlanta) 5.3 1.0% 22.4%
Slide 9: Sector Diversification Adds to Resiliency
Top 10 Tenants Sector Diversification Leased % of Adds to Resiliency Tenant Industry Credit Rating Property sf Portfolio CRI1 Village Charter Communications Moody's: Ba2 Center 419,881 9.0% Communications and Information Others Station I & II Professional Finance Moody's: A2, Goldman Sachs & Technic
Slide 10: One Washingtonian Center
One Washingtonian Center REIMAGINED. REDEFINED. ✓ Undergoing asset enhancement initiative, expected to complete in 2H2024 ✓ Iconic 14-storey office building with ✓ Opportunity to revamp one of the most desirable office assets in the area Lakefront view Entrance to Lobby ✓ Direct connection to the RI
Slide 11: One Washingtonian Center
One Washingtonian Center REIMAGINED. REDEFINED. ✓ Undergoing asset enhancement initiative, expected to complete in 2H2024 ✓ Opportunity to revamp one of the most desirable office assets in the area Tenant Amenities centralized on level one: Tenant Lounge Conferencing Facility ✓ Tenant lounges – one
Slide 12: Tenant and Community Activities
Tenant and Community Activities Food Trucks Valentine's Day Celebrations San Antonio Fiesta Celebration Tower 1 Emeryville Crosspoint Promenade I & II Eclipse Celebration Gym Open House Blood Drive Tower 909 222 Main Tower 1 Emeryville 1Q2024 | MAY 2024 12
Slide 13: Current Market Environment
Current Market Environment Real GDP Growth 1Q 20241 ▪ U.S. economy increased at an annual rate of 1.6% in 1Q20241. ▪ Labor market cooled slightly but remained healthy with 1.6% unemployment rate of 3.9% in April 20242. ▪ U.S. reported an inflation rate of 3.5% YoY in March 20242. Unemployment2 Rate
Slide 14: U.S. Office Market Dynamics
U.S. Office Market Dynamics ▪ Leasing environment remained cautious and uneven across U.S. submarkets ▪ Overall U.S. office is still in a negative net absorption environment, occupancy rate close to 80% ▪ 60% of office vacancies concentrated in just 10% of buildings ▪ Demand of space continues stead
Slide 15: U.S. Office Market Dynamics
U.S. Office Market Dynamics A Demand Broadly Strengthening ✓ Tenant space requirements in first quarter increased 5.7% vs last quarter and 28.3% year-on-year ✓ National office demand continues to trend upwards, marking the fourth consecutive quarter of improvement ✓ Despite the improvement, current
Slide 16: U.S. Office Market Dynamics
U.S. Office Market Dynamics B Lease signings pulled back vs last quarter, remain higher vs first quarter last year ▪ Leasing activities (of last four quarters) at 75% of pre pandemic levels 80 Millions Quarterly Leasing Activity 70 (million s.f.) 60 57.1 million s.f. 50 (Pre-pandemic average) 40 30
Slide 17: U.S. Office Market Dynamics
U.S. Office Market Dynamics 1 C Supply Decline: Slowing Construction & Record Conversion Groundbreakings have declined to the lowest in nearly 40 years of recorded data Conversion activity at record volume Ongoing push by U.S. government to convert office Potentially creating intense supply constrai
Slide 18: Key Priorities
Key Priorities Building Resilience. Driving Recovery in Value. 1 2 3 Leasing Refinancing Leverage ✓ Occupancy remains top priority ✓ In constructive ✓ Manage debt ratios ✓ Good leasing demand for spaces at discussions with lender within required PRIME’s properties, and engaged in ✓ The Manager belie
Slide 19: Thank You
Thank You info@primeusreit.com +65 6951 8090 www.primeusreit.com 1 Raffles Place #40-01 One Raffles Place Singapore 048616