Prime US REIT Announces Dissolution of Subsidiaries Following Asset Divestment

Prime US REIT Management Pte. Ltd., manager of Prime US REIT, has announced the dissolution of two subsidiaries following the divestment of a key asset, One Town Center. This update is made in accordance with Rule 706A of the Singapore Exchange Listing Manual and covers the financial period from 1 July 2025 to 31 December 2025.

Key Highlights

• Divestment of One Town Center: The REIT completed the sale of its One Town Center property on 10 July 2024. This marks a significant change in the REIT’s portfolio, potentially impacting its future income streams and asset base.
• Dissolution of Subsidiaries:
  • Prime US-One Town Center, LLC, which held One Town Center, was dissolved on 15 July 2025.
  • Prime US-Acquisition II, LLC, the sole member of Prime US-One Town Center, LLC, was dissolved on 18 July 2025.
• No Material Impact: According to the Manager, these transactions do not have any material impact on the net tangible assets or earnings per unit for the financial year ended 31 December 2025.
• Management: The announcement was made by Rahul Rana, Chief Executive Officer of Prime US REIT Management Pte. Ltd., on 11 February 2026.

Important Considerations for Investors

• Portfolio Adjustment: Investors should note the removal of One Town Center from Prime US REIT’s portfolio. While the Manager states that the dissolution of the subsidiaries does not materially affect the REIT’s net tangible assets or earnings per unit, the divestment itself could signal a shift in asset strategy or capital allocation.
• Potential Price Sensitivity: The sale of a major property and subsequent dissolution of subsidiaries may be interpreted by the market as a restructuring move, which could influence investor sentiment and share price. However, as explicitly mentioned by the Manager, there is no material impact for the financial year ended 31 December 2025.
• Liquidity and Trading: Unitholders are reminded that units of Prime US REIT can only be traded on the Singapore Exchange (SGX-ST) and not redeemed or purchased directly from the Manager. Listing does not guarantee liquidity, and market conditions may affect the ability to trade units efficiently.
• Jurisdictional Restrictions: The announcement is not to be distributed outside Singapore, and violation of this restriction could constitute a breach of securities laws in other jurisdictions.
• Performance Warning: Past performance of Prime US REIT is not necessarily indicative of future results.

Detailed Summary

Prime US REIT has undergone structural changes with the divestment of One Town Center and dissolution of related subsidiaries. These actions are part of ongoing portfolio management efforts and compliance with SGX listing rules. The Manager assures that these moves do not materially impact the REIT’s financials for the reporting year. Nonetheless, investors should monitor future announcements for updates on portfolio strategy, potential redeployment of capital, and any impact on distribution yields or asset values.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, an offer, or solicitation to purchase any securities. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions. The value of units and income derived from them may fluctuate. Investment in REITs carries risks, including possible loss of principal. Past performance is not indicative of future results. This article should not be distributed outside Singapore.

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