SEE: Prime US REITs a prime opportunity as leasing performs strongly in slow market
For the same reason, 2HFY2020 net property income (NPI) came in 7.8% higher than its IPO forecast at US$47.5 million, or 18.3% y-o-y higher than NPI of 2HFY2019. Net change in fair value of derivatives in 2HFY2020 resulted in a gain of US$2.7 million primarily due increase in interest rates. Income available for distribution for the 2HFY2020 stood at US$36.2 million, 16.1% higher than its IPO forecast, or 24.1% y-o-y higher as compared to the same period a year ago. FY2020 gross revenue stood at US$143.6 million, 6.6% higher than forecasted during its IPO. Gross revenue during the period surged 136.7% y-o-y largely due to contributions from Park Tower. The period was also longer than FY2019’s period that spanned slightly under six months, from July 19, 2019, to Dec 31, 2019. FY2020 NPI came in at US$95 million, 7.7% higher than its IPO forecast, and 136.5% y-o-y higher than FY2019 for the same reasons. Income available for distribution for the FY2020 came in at US$72.1 million, 15.6% higher than its IPO forecast, and 147% y-o-y higher than that of FY2019.
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Office-using equipment has rebounded since 2Q2020 as businesses resumed their rehiring plans. Cushman and Wakefield predicts that the US will return to peak office-using employment by 1Q2022, adds the manager. “The resounding sentiment among industry leaders is that flight to quality will continue, which should benefit Prime US REIT’s well-located and highly amenitised assets,” it says in a Feb 17 statement.