Prime US REIT's manager has announced that it divested One Town Center, located in Boca Raton, Florida for a sale price of US$82 million ($108.27 million) on July 10.
The property was acquired in 2021 for US$99.2 million. According to the manager, the divestment was a strategic sale in line with the REIT's deleveraging strategy.
"The completion not only brought down the aggregate leverage but also provided immediate additional liquidity, as Prime seeks to pare down existing debt, manage interest cost and provide for capital expenditures which are essential to enhance PRIME’s income resilience and deliver sustainable total return to unitholders," the manager said.
The REIT's aggregate leverage as at end-June was 48.9%. Following the divestment of One Town Center, the pro forma leverage is 46.4%.
In addition, Prime US REIT OXMU entered into a new credit facility agreement on Aug 9 for up to US$550 million, comprising a US$400 million term loan facility and a US$150 million committed revolving credit facility.
The facility has an initial maturity of July 2026 and a further one-year extension option. US$330 million of borrowings remained hedged till mid-2026 via interest rate swap.
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Gross revenue in 1HFY2024 for the six months to June 30 fell by 5.8% y-o-y to US$73.5 million while net property income of was down 14% y-o-y to US$40.6 million.
Income available for distribution to unitholders for 1H2024 was US$23.3 million, after accounting for higher finance expenses due to incremental drawdowns to fund capital expenditures, translating into 1H2024 distributable income per unit of 1.78 US cents.
However, Prime US REIT will retain 90% of distributable income for capex needs, and will distribute 0.18 US cents per unit.
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