Prime US REIT Launches US\$25 Million Private Placement to Accelerate Leasing Momentum, Boost Distributions, and Solidify Balance Sheet

Singapore, 25 September 2025 – Prime US REIT Management Pte. Ltd., the manager of Prime US REIT, has announced a fully underwritten private placement to raise no less than US\$25 million in gross proceeds, marking a significant development that could reshape the REIT’s financial trajectory and impact investor returns in the coming quarters.

Key Points Investors Must Know

• Private Placement Details: The REIT will issue new units priced between US\$0.1935 and US\$0.2000 each, representing a discount of 7–10% to the previous day’s VWAP and 5.9–9% to the adjusted VWAP. This is a clear incentive for institutional and accredited investors, and the offering is fully underwritten by DBS Bank Ltd. and Maybank Securities Pte. Ltd.
• Use of Proceeds: The bulk of the funds (96.8%, or approximately US\$24.2 million) will be used to finance capital expenditure, tenant incentives, and leasing costs to activate new and existing leases. Only 3.2% (US\$0.8 million) will cover placement-related expenses, with any remainder earmarked for general corporate and working capital purposes.
• Potential Impact on Portfolio and Distributions: The REIT’s leasing momentum has surged in 2025, with over 400,000 sq ft of leases signed in H1 2025. Occupancy has climbed to 80.2% and WALE has lengthened to 4.7 years. The capital injection will enable immediate activation of signed leases, support further lease negotiations for over 150,000 sq ft, and drive higher recurring income streams.
• Distribution Policy Shift – Major Price-Sensitive News: The manager plans to ramp up the distributable income payout ratio from 10% to 50% starting with H2 2025, a substantial jump that is likely to impact unit valuations and investor sentiment. Advanced distribution for existing unitholders is estimated at US 0.24 cents per unit for the period from 1 July to 5 October 2025.
• Financial Strengthening: The placement is expected to reduce aggregate leverage from 46.7% to 45.9% (pro forma), enhancing financial flexibility and interest coverage ratios. This positions the REIT to take advantage of the improving US office market outlook and pursue further leasing opportunities.
• Enlarged Unitholder Base and Liquidity: About 127 million new units (up 9.7% over existing units) will be issued, potentially increasing trading liquidity and broadening the investor base.
• Mandate and Eligibility: The placement is issued under an existing general mandate, so no separate unitholder approval is required. The offer is only open to institutional, accredited, and select investors, and excludes US investors due to regulatory restrictions.
• Listing and Distribution Entitlement: New units will be listed around 6 October 2025. Importantly, holders of new units will not be entitled to the Advanced Distribution or the 1H2025 distribution, but will participate in all subsequent income distributions.

What Does This Mean for Shareholders?

• Price-Sensitive: The announced shift in distribution payout from 10% to 50% is a major change, likely to attract yield-focused investors and potentially drive unit price appreciation.
• Growth Trajectory: The capital raise comes at a time when leasing activity and occupancy are rebounding, with clear visibility on future cash flows. This is expected to translate into higher distributable income and a more sustainable payout policy.
• Balance Sheet Resilience: Lower aggregate leverage and improved financial flexibility will give Prime US REIT capacity to withstand market volatility and pursue growth opportunities in the US office sector.
• Liquidity and Market Appeal: With a larger free float and investor base, trading volumes could increase, making the REIT more attractive to both institutional and retail investors.
• Fairness to Existing Unitholders: The advanced distribution ensures that pre-placement investors are rewarded for income accrued prior to new units being issued.

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Prime US REIT’s US\$25 Million Placement Signals Growth, Higher Distributions, and Financial Strength – Major News for Investors

Disclaimer:

This article is for informational purposes only and does not constitute investment advice or an offer to purchase or subscribe for any securities. Investors should consider their own circumstances and consult with financial advisors before making investment decisions. The value of units and income derived from them may fall as well as rise. Past performance is not indicative of future results. The units described are subject to investment risks, and holders have no right to request redemption from the REIT manager. This news is based on public disclosures as of 25 September 2025 and may be subject to change.

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