SINGAPORE (June 24): US office REITs are enjoying strong portfolio resiliency amid the economic uncertainty of Covid-19. DBS Research’s Rachel Tan and Derek Tan have reported healthy rent collections of more than 90% in the April-May period and portfolio occupancy of 94-97% as of 1Q20. On top of this, expiring leases for FY20 have fallen 4-6% after factoring leases renewed and signed in 1Q20, suggesting stable cash flow going forward. 

PRIME US REIT, in particular, has experienced near-perfect rental collection during the lock-down as even at-risk tenants have continued to pay their rents. “Prime continued to display the quality of its portfolio and management capabilities with successfully collected 99% of its rents in Apr and May during the lockdown period, including at-risk tenants,” say the analysts. There have so far been few requests for rental relief from the REIT’s tenants. 

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