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OPERATIONAL UPDATE | JULY 2021
Phillip Securities
Prime US REIT
Corporate
Presentation
17 August 2023
Important Notice
This document may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual
future performance, outcomes and results may differ materially from those expressed in forward-looking
statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these
factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital
and capital availability, competition from similar developments, shifts in expected levels of property rental
income, changes in operating expenses, governmental and public policy changes, and the continued availability of
financing in the amounts and terms necessary to support future business.
Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the
current view of management on future events. The value of units in Prime US REIT (the “Units”) and the income
derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager,
DBS Trustee Limited (as trustee of Prime US REIT) or any of their affiliates.
An investment in Units is subject to investment risks, including the possible loss of the principal amount invested.
Holders of Units (the “Unitholder”) have no right to request the Manager to redeem or purchase their Units while
the Units are listed. It is intended that Unitholders may only deal in their Units through trading on Singapore
Exchange Securities Trading Limited (the “SGX-ST”). Listing of the Units on the SGX-ST does not guarantee a
liquid market for the Units.
This document is not to be distributed or circulated outside of Singapore. Any failure to comply with this
restriction may constitute a violation of United State securities laws or the laws of any other jurisdiction.
The past performance of Prime US REIT is not necessarily indicative of its future performance.
The information presented in this document as at and for the period ended 30 June 2023 is not audited or
reviewed by the external auditors.
171 17th Street
Atlanta, Georgia
2Q2023 | AUGUST 2023
Content
171 17th Street
Atlanta, Georgia
Tower 909
Dallas, Texas
One Town Centre
Boca Raton, Florida
222 Main
Salt Lake City, Utah
Crosspoint
Philadelphia, Pennsylvania
1H2023 Key Highlights 04
Financial Update 05
Portfolio Update 10
Current Market
Environment
14
2Q2023 | AUGUST 2023 3
1H2023 Key Highlights
▪ Notable leasing discussions at several
of PRIME’s assets
▪ Positive rental reversion of +9.5% in
2Q2023. In-place rents below asking
rents by 6.7%
▪ Lease extension by No. 1 Top tenant
Charter Communication (~94k sq ft,
VCS1) in July 2023
▪ WALE: 3.9 years
▪ Well-diversified portfolio with 14 assets
across 13 primary markets
▪ Ability to fulfill TI and capex
requirements; important to tenants
▪ Prominent employers continue to shift
policies in favor of higher office-
centric attendance – gaining traction
in several markets
▪ According to JLL Research, office
attendance rates trending 9% higher
YoY in 2Q2023
▪ U.S. office leasing volume rebounded
by 11.6% in 2Q2023, following three
consecutive quarters of decline
▪ Net absorption showed signs of an
inflection point, with negative net
absorption slowing 40% QoQ
▪ Deliveries volume continued to slow
Strategic Footprint in Non-Gateway and Affordable Cities
Well-Capitalised
✓ Debt headroom of US$232m
✓ Undrawn facilities of US$179m
2
U.S. Office Market^
✓ Cyclical challenges persist
✓ Tentative green shoots emerging
3
1
▪ Strong network of financing
relationships, supported by well-
established financial institutions
▪ Exercised extension options on
US$400 million of debt from July
2023 to July 2024
▪ Leverage of 42.8%, Debt headroom of
US$232m; Buffer of c.15% from 2022
year-end valuations to 50% gearing
threshold
▪ Interest coverage ratio at 3.4x
▪ Interest rate exposure well managed,
80% debt either fixed or hedged
currently
Notable Leasing
Discussions
✓ Return-to-Office improved
2Q2023 | AUGUST 2023 ^ Source: JLL Research: U.S. Office Outlook Q2 2023 4
US$‘000 1H2023 1H2022
Variance
%
Gross Revenue 79,467 81,804 (2.9)
Net Property Income 47,167 50,820 (7.2)
Income Available For Distribution
to Unitholders
29,226 41,3271 (29.3)
DPU (US cents) 2.46 3.521 (30.1)
Annualised DPU Yield (%) 23.6 33.8 (30.2)
1H2023 DPU at US 2.46 cents
1H2023 Financial Update
Note
1. For the 6 months ended June 2022, income available for distribution to Unitholders and DPU would have been
US$38.0 million and 3.23 US cents respectively if the Manager had elected to receive 100% of its base fee in cash.
2. Based on annualised DPU against closing unit price of US$0.210 as at 30 June 2023.
2Q2023 | AUGUST 2023
1H2023 Distributable Income was US$12.1m
(-29.3%) lower yoy mainly due to:
▪ -US$2.3m: Lower gross rental income due to
lower occupancy during 1H2023 vs 1H2022,
offset by higher parking and recoveries
income
▪ -US$1.3m: Higher property operating
expenses (Utilities, HVAC, security) largely
due to increase in office physical occupancy
▪ -US$3.5m: Higher interest expenses on
unswapped term loan and revolver balances
▪ -US$2.6m: Increase in Manager’s base fee
settled in cash. (elected to receive 100% of its
base fee in cash, vs 20% in 1H2022)
5
Financial Position
▪ Overall debt and gearing levels
continue to be managed prudently.
▪ 100% payout of distributable income
US$ M 30 Jun 2023
Investment Properties 1,552.8
Total Assets 1,602.7
Borrowings 683.3
Total Liabilities 716.8
Net Assets Attributable to Unitholders 885.9
NAV per Unit (US$) 0.75
DPU for the period from
1 January to 30 June 2023
US 2.46 cents
Ex-Date 16 August 2023
Record Date 17 August 2023
Payment Date 28 September 2023
2Q2023 | AUGUST 2023 6
Debt Summary Aggregate
Leverage
42.8%
Undrawn &
Available
Facilities1
US$179.0m
Gross
Borrowings
(drawn)
US$685.6m
Effective
Interest
Rate3
3.8%
Debt
Headroom
to 50%
US$231.6m
Interest
Coverage4
3.4x
Weighted
Average
Maturity
(Years)5
1.5 / 2.2
All-in
Weighted
Average
Interest Rate2
3.9%
2H2022 & FY2022 RESULTS | FEBRUARY 2023
[1] US$66M of RCF drawn as at 30 Jun’23. 4 and 5-year term loan facilities of US$200M each, both fully drawn as at 30
Jun’23. 3-year term loan facilities obtained in 3Q2021 amounting to US$114.6M, fully drawn as at 30 Jun’23.
[2] Based on interest expense (including amortisation of upfront debt-related transaction costs and commitment fees) on
loans and borrowings for the 6 month period ended 30 Jun’23.
[3] Based on interest expense (excluding amortisation of upfront debt-related transaction costs and commitment fees) on
loans and borrowings outstanding as at 30 Jun’23.
[4] Calculated as net income before tax expense, net finance expense, change in fair value of derivatives and amortisation
of lease commissions, change in fair value of investment properties divided by finance expenses, including amortisation
of upfront debt-related costs and commitment fees, for trailing 12-month period ended 30 Jun’23.
[5] Fully extended debt maturity. Extension options to extend the 4-year term loan and Revolver maturities to July 2024
have been executed in July 2023. Options are available to the Borrower to extend maturities of the two 3-year term
loan and Revolver facilities aggregating US$160m obtained in 3Q2021 from 2024 to 2026.
As at 30 June 2023
▪ Decrease in gearing due to decrease in
borrowings as of June 30, 2023 compared
to March 31, 2023, the latter was higher
due to timing differences
▪ Interest cost increases in higher rate
environment, buffered to a large extent by
hedges on over 80% of total debt, also
mitigating interest coverage ratio
▪ Liquidity and debt headroom high, but
balance sheet will continued to be
managed prudently given current gearing
and high marginal cost of debt
▪ Extension of maturities of 4-year term
loan and RCF facilities aggregating
US$400m – from July 2023 to July 2024
▪ No debt maturing till July 2024
2Q2023 | AUGUST 2023 7
Summary of Credit Facilities
Facilities
30 Jun 2023
Lender Tranches
Facility
Available
(US$ m)
Outstanding
Principal
(US$ m)
Hedged/ Fixed Loan Maturity
Main
Credit Facility
– Floating
Syndicate
led by Bank
of America
Term Loan
1 and 2
Total: 400
200 each
Total: 400
200 each
US$330m
Hedged Till Jun-2026
TL1: Jul-2023
(Extended to 2024^)
TL2: Jul-2024
US$70m: Unhedged
Revolver 200 36 Unhedged
Jul-2023
(Extended to 2024^)
Total Main Credit Facility 600 436
Fixed (Secured) MetLife
Fixed Rate
Loan
105 105 Fixed Rate Aug-2029
Total Fixed MetLife Loan 105 105
One Town Center
– Secured
Floating Citizens
Bank
Term Loan 45 45 Hedged Till Jul-2024
Jul-2024
Two one-year
extension options
Fully extended
maturity in Jul-2026
Revolver 20 20 Unhedged
Sorrento Tower
– Secured
Floating
Term Loan 70 70 Hedged Till Jul-2024
Revolver 25 10 Unhedged
Total Citizens Loans 160 145
865 686
^ following exercising of extension options in July
2023, extending maturity from July 2023 to July 2024
36
400
80
65
105
2023 2024 2025 2026 2027 2028 2029
✓ US$330m (out of US$400m)
benchmark rate hedged till Jun-2026
i.e. beyond the facility’s maturity in
Jul-2024^
Debt Maturity Profile^
(US$m)
✓ US$115m (out of US$145m)
hedged till Jul-2024
Unhedged
Hedge Expiry &
Fixed Loan Maturity (US$m)
36
70
330
105
10
70
20
45
2023 2024 2025 2026 2027 2028 2029
20%
(136) 17%
(115)
48%
15%
▪ Debt tranches aggregating US$400m with initial maturity of July 2023 extended to July 2024
▪ Available liquidity of US$179m in undrawn credit lines
▪ Minimal fees for extension of Main Credit Facility and Citizens secured loans
2Q2023 | AUGUST 2023 8
445
65%
105
15%
136
20%
✓ High % Debt Hedged/Fixed Provides Protection in Current Rate Environment
✓ Benchmark Rate for US$330m out of the Main Facility’s Term Loan 1 & 2 (US$400m)
Hedged Till June 2026, beyond fully extended maturity in July 2024^
Swap Expiry or
Fixed Rate Loan
Maturity
Total
Fixed or
Hedged
(US$ m)
2023 2024 2025 2026 2027 2028 2029
Fixed Rate (MetLife)
Aug
2029
105
15%
Interest Rate Swap
Swapped from Floating
to Fixed
- Main Credit Facility
Jun
2026
330
48%
Interest Rate Swap
Swapped from Floating
to Fixed - OTC and ST1
Jul
2024
115
17%
% Debt Hedged/ Fixed
Tenor Hedged/ Fixed
As at 30 June 2023
Interest Rate Management
Total 550 80%
Note 1: One Tower Center (“OTC”) and Sorrento Tower (“ST”)
Floating Rate (Hedged)
Fixed Rate
Floating Rate (Unhedged)
Debt Hedged or Fixed
(As at 30 June 2023)
80%
to Mid-2026
and Beyond
to Mid-2024
and Beyond
63%
80% 63%
(US$ m)
2Q2023 | AUGUST 2023 9
^ following exercising of extension options in
July 2023, extending maturity from July 2023 to
July 2024
8.7%
13.2%
17.2%
6.0%
15.8%
36.5%
9.0%
13.5%
18.5%
6.8%
17.7%
33.4%
2023 2024 2025 2026 2027 2028 and
Beyond
By NLA By CRI
Portfolio Updates
Lease Expiry Profile (As at 30 June 2023)(a,b)
[a] Annualized cash rental income based on the month of June 2023.
[b] Excludes month to month leases accounting for 2.6% of NLA or 1.1% of annualized CRI.
Stable Tenancy Profile with Well Staggered Expirations
3.9 years
Weight Average Lease
Expiry (WALE)
30 June 2023
2Q2023 | AUGUST 2023
[a]
+ 9.5%
Positive Rental
Reversion
2Q2022
▪ Leasing volume: 66.8k sq ft
2Q2023, in addition to 64.4k sq ft
in 1Q2023
▪ 2Q2023 leases signed across
diverse sectors - law firms,
financial services, tech and
corporate dealership
▪ YTD (as at 3 Aug 2023) leasing
volume of 225.5k sq ft comprised
✓ 70% Renewals
✓ 27% New leases
✓ 3% Expansions
▪ Lease extension by No. 1 Top
tenant Charter Communication
(~94k sq ft, VCS1) in July
=> From Jul-24 to Oct-27
('000 Sq ft) 1Q23 2Q23 3Q to-date YTD
Renewal 26.9 37.8 94.3 159.0
New lease 37.5 23.0 - 60.5
Expansion - 6.0 - 6.0
Total 64.4 66.8 94.3 225.5
10
Properties
(As at 30 June 2023)
Primary Market, State
% Asset
Value
Occu
pancy
WALE
(years)
% Lease
expiry
remaining
in 2023
by CRI[1]
Annual In
Place Rent
(US$)
Annual
Asking
Rent (US$)
Potential
Rental
Reversion
222 Main Salt Lake City, Utah 13.4% 98.9% 3.8 0.0% $40.40 $39.50 -2.2%
171 17th Street Atlanta, Georgia 12.3% 80.5% 5.4 1.3% $29.60 $30.00 +1.4%
Sorrento Towers San Diego, California 9.6% 96.2% 5.1 0.0% $42.39 $51.00 +20.3%
Park Tower Sacramento, California 9.5% 74.3% 3.8 0.6% $34.02 $37.15 +9.2%
Village Center Station II Denver, Colorado 9.2% 100.0% 5.0 0.0% N/A[3] N/A[3] N/A[3]
Tower I at Emeryville
San Francisco Bay Area,
California
7.2% 69.1% 4.2 0.1% $43.68 $55.15 +26.3%
CrossPoint Philadelphia, Pennsylvania 6.6% 97.1% 5.7 0.9% $38.77 $42.50 +9.6%
One Town Center Boca Raton, Florida 5.9% 100.0% 4.5 0.0% $36.43 $40.00 +9.8%
One Washingtonian Center
Suburb Maryland, Washington
D.C.
5.4% 83.3% 1.6 5.3% $36.92 $36.00 -2.5%
Tower 909 Dallas, Texas 5.0% 84.0% 3.1 0.4% $34.19 $35.90 +5.0%
101 South Hanley St. Louis, Missouri 4.7% 94.8% 3.1 0.4% $29.51 $31.00 +5.0%
Promenade I & II San Antonio, Texas 4.6% 85.9% 2.1 0.0% $28.94 $31.00 +7.1%
Village Center Station I Denver, Colorado 4.6% 68.1% 1.3 0.0% $24.68 $26.00 +5.3%
Reston Square
Suburb Virginia, Washington
D.C.
2.0% 46.1% 2.6 0.0% $40.53 $38.00 -6.2%
Total / Weighted Average 100.0% 85.6% 3.9 9.0% $35.07 $37.41 +6.7%
Positive reversion potential still in place
[1] Lease expiry excludes month to month leases accounting for 1.1% of CRI
[2] Excluding short term leases < 1year
[3] Excludes Village Center Station II which is fully leased until 2028
▪ Positive rental reversion2
demonstrated across multiple
quarters, potential remains
going forward
▪ Will be flexible on headline
rent, focus on NER where
lower capex deals available
▪ Upcoming lease expiries
through 2023 well spread
across portfolio reducing
single asset exposure; the
largest single asset lease
expiry at One Washingtonian
substantially from Sodexo
expiry on 12/31
2Q2023 | AUGUST 2023 11
Submarket Outlook
1. PRIME’s Portfolio Occupancy as at 30 June 2023
2. CoStar as of 11th July 2023
3. CoStar 4 & 5 Star National average occupancy rate as at 11th July 2023
State
Metro
Submarket
PRIME’s
Properties
%
Contribution
by Carrying
Value
PRIME’s
Occupancy Rate1
(%)
Class A
Submarket
Occupancy Rate2
(%)
Utah Salt Lake City, Downtown 222 Main 13.4% 98.9% 84.5%
Georgia Atlanta, Midtown 171 17th Street 12.3% 80.5% 77.8%
California
San Diego, Sorrento Mesa Sorrento Towers 9.6% 96.2% 91.1%
Sacramento, Downtown Park Tower 9.5% 74.3% 90.3%
San Fran/Oakland
Emeryville/Berkeley
Tower I at Emeryville 7.2% 69.1% 79.8%
Colorado Denver, Greenwood Village
Village Center Station
I & II
13.8%
VCS I: 68.1%
VCS II: 100.0%
76.0%
Pennsylvania Philadelphia, Suburban Crosspoint 6.6% 97.1% 82.6%
Florida Boca Raton One Town Center 5.9% 100.0% 85.7%
Texas
Dallas, Urban Center Tower 909 5.0% 84.0% 76.3%
San Antonio, Far Northwest Promenade I & II 4.6% 85.9% 91.0%
Missouri St. Louis, Clayton 101 South Hanley 4.7% 94.8% 81.8%
Washington DC
Washington DC (MD),
Gaithersburg
One Washingtonian
Center
5.4% 83.3% 99.7%
Washington DC (VA), Reston Reston Square 2.0% 46.1% 78.4%
100.0% 85.6% 81.6%3
▪ Occupancy at 8 of PRIME’s 14
properties higher than
submarket average
▪ Q-o-Q occupancy impacted by
month-to-month leases
coming off
▪ Two assets at 100% leased
▪ Strong leasing momentum at
222 Main, Sorrento Towers,
Crosspoint, Tower 909, 101 S.
Hanley and Promenade
▪ Significant leasing discussions
underway at VCS I and Park
Tower, albeit with relatively
long lead times
▪ Encouraging signs of lease
activity emerging at One
Washingtonian and Tower 1
2Q2023 | AUGUST 2023 12
20.7%
14.3%
12.3%
11.2%
7.2%
6.9%
5.6%
3.4%
2.6%
15.8%
71% In Established + Growth (STEM/TAMI)2 Sectors
Top 10 Tenants
Finance
Communications
and Information
Real Estate
Services
Others
Medical, Biotech
and Health Care
Government
Oil and Gas
Accounting, Tax
Preparation, Bookkeeping,
and Payroll Services
Accommodation
and Food Services Legal
Services
Tenant Industry Credit Rating Property
Leased
sq ft
% of
Portfoli
o CRI1
Charter
Communications
Communications
and Information
Moody's: Ba1
Village Center
Station I & II
419,881 8.4%
Goldman Sachs
Group Inc.
Finance
Moody's: A2
S&P: BBB+
Fitch: A
222 Main 176,416 5.3%
Sodexo Operations
LLC
Accommodation
and Food Services
S&P: BBB+
One
Washingtonian
Center
190,698 5.3%
Dexcom
Medical, Biotech &
Health Care
Independent
Firm Credit
Analysis:
Strong
Sorrento Towers 148,383 4.7%
Holland & Hart Legal Services Private Firm 222 Main 89,960 3.2%
Wells Fargo Bank NA Finance
Moody's: AA2
Fitch: AA-
S&P: A+
171 17th Street 106,030 3.1%
Arnall Golden
Gregory LLP
Legal Services Private Firm 171 17th Street 103,079 2.8%
Bank of America, NA Finance
Fitch: AA
Moody's: Aa1
One Town Center 61,430 2.5%
Matheson Tri-Gas Oil and Gas Private Firm Tower 909 93,942 2.2%
Apache Corporation Oil and Gas Private Firm Promenade I & II 69,086 2.2%
Total 1,458,905 39.7%
WALE Top 10 3.8 Years
[1] Data for Cash Rental Income as at 30 June 2023
[2] Established: Finance, Real Estate, Legal, Government
STEM/TAMI: Communications, Health Care, Scientific R&D Services,
Information, Professional, Scientific and Tech Services
Sector Diversification
Adds to Resiliency
2Q2023 | AUGUST 2023 13
Current Market Environment
1. U.S. Bureau of Economic Analysis Advance Estimate Q2 2023
2. Bloomberg: Powell Says Fed Staff Is No Longer Forecasting a Recession (26 July 2023)
3. U.S. Bureau of Labor Statistics June 2023
4. U.S. Federal Open Market Committee: Press Release
5. JLL Research: U.S. Office Outlook Q2 2023
▪ U.S. real GDP grew 2.4%1 year-on-year (YoY) in 2Q2023
▪ According to U.S. Federal Reserve Chair Jerome Powell at the July 2023
FOMC meeting, the central bank no longer forecasts a U.S. recession2
▪ U.S. labor market remains tight in June 2023, with low unemployment rate
of 3.6% and labor participation holding constant3
▪ Notwithstanding the moderating of inflation rate to 3.0% YoY in June
20233, the FOMC continued to tighten its monetary policy on 26 July
2023, raising the new target fed rate by another 25bps, to the 5.25% to
5.50% range4
▪ Concerns of a significant financial crisis have alleviated compared to the
end of 1Q, as bank failures have seemingly been contained to date and
distress in the financial system is waning5
Real GDP Growth
2Q 20231
2.4%
Unemployment2
Rate June 2023
3.6%
Inflation Rate2
June 2023
3.0%
year-on-year
2Q2023 | AUGUST 2023 14
1. JLL Research Office Outlook Q2 2023
▪ Continued bifurcation across U.S. office markets.
Tentative green shoots emerging with certain markets stronger than others.
▪ More than 60% of office vacancy concentrated in 10% of buildings
▪ Leasing momentum is tentatively improving. U.S. office leasing volume rebounded
in 2Q2023, following three consecutive quarters of decline, with leasing activities
growing 11.6% quarter-over-quarter (QoQ).
▪ RTO momentum continues. Office attendance rates trending 9% higher YoY. More
companies shifted policies in favor of more office-centric attendance in 2Q202.
▪ Net absorption showed signs of an inflection point, with negative net absorption
slowing 40% QoQ from 20 million sq ft in 1Q2023 to 12.5 million sq ft in 2Q2023.
▪ Asking rents nationally are continuing to grow, at 0.6% growth QoQ
▪ A slowing volume of deliveries, increased leasing activity, and accelerated
demolitions and conversions of older vintage product are pointing to the
increasing likelihood that U.S. office vacancy rates will peak over the near term,
and begin to decline in 2024.
U.S. Office Trends1
2Q2023 | AUGUST 2023 15
^ based on tour of assets in 2Q2023, includes direct feedback from leasing agents and direct large
tenant engagement
▪ Anecdotal evidence that corporates are continuing to find ways to get people back
to office – from encouraging to mandating, they have not given up on this effort
▪ Several significant tenants at PRIME assets in latest visits have mandated (at least
hybrid) return to work – AGG (law firm, Atlanta), Goldman Sachs (financial services,
222 Main), Matheson (industrial gases, Tower 909) and Teleflex (medical tech,
Crosspoint)
▪ While uneven across markets, there will be an inflection point where corporate
decisions on RTO will influence others to follow suit
▪ Leasing activity is showing signs of recovery in several markets – however not
consistently deep, and some leasing markets are recovering at a faster pace
▪ People bring back people – well-amenitized assets and activities at the assets are
key – we are on the right track
▪ Two-way communication with tenants critical – what they need from landlords and
what are delivering to them
Observations on the ground in 2Q2023^
16
2Q2023 | AUGUST 2023
▪ Overall physical occupancy levels as of August 4, 2023 – 58%.
However, variations exist between markets.
• 6 of PRIME’s assets are between 67% and 85% physically occupied,
• 4 assets between 40% and 55%, and
• 4 assets (in the East and West US) between 24% and 39%
Observations and Asset Management Priorities
▪ Landlord initiatives being intensified at the asset level
• Tenant and community activities – periodic and ongoing
• Ongoing activation of common areas, accelerated decisions on select assets
• Importance of upgraded and quality F&B at the assets – alternative options
• Enhancement of communication infrastructure and protocols
• ESG effort ongoing
• Continued delivery of high-quality responsive Property and Asset
Management
2Q2023 | AUGUST 2023 17
Common areas at PRIME assets :
Lounges, Outdoor Patios and Gym
Tower One Emeryville
Reston Square Sorrento Towers
Crosspoint
2Q2023 | AUGUST 2023 18
Common areas at PRIME assets : Lobbies
Crosspoint 222 Main
Tower 909
171 17th Street
2Q2023 | AUGUST 2023 19
Food & Beverage Offerings
20
One Town Center
101 South Hanley
Red Pine Chinese
Restaurant & Lounge
The Capital Grille
Village Center Station
222 Main
The Daily
2Q2023 | AUGUST 2023
Urban Market
Tenant and Community Activities
2Q2023 | AUGUST 2023
Beekeeping Event @ Tower 909
Amenity Center Unveiling @ Reston Square
Earth Day + Take Your Kids to Work @ One Washingtonian Center
21
Bike-to-Work Day @ Village Center Station
Key Management Priorities
Tower 909, Dallas, Texas
Leasing
Active Capital
Management
▪ Leasing the key priority ▪ Monitoring bank debt
markets and rate
environment, focus on
2024 refinancing
ESG
Commitment
▪ Portfolio- wide initiatives:
Gridium Energy
Management, Energy
Star/LEED recertifications
and benchmarking, UL Air
Quality Verification
▪ Property specific initiatives
continue to be rolled out:
Fitness Center upgrades,
Wellness rooms, EV
Charging stations, outdoor
amenities, tenant and
community engagement
▪ Implementation of onsite
tenant communication
solutions supported by LPC
expertise
▪ Prudent use of capital
to support building
enhancements and
amenitization, and
leasing
▪ Flexibility on leasing
structures
▪ Execution of asset
enhancement initiatives
▪ Safe and healthy
workplace
▪ ESG initiatives to help
drive leasing
2Q2023 | AUGUST 2023
▪ Continued evaluation of
balance sheet and
leverage, assessing
potential deleveraging
strategies
22
Thank You
1 Raffles Place
#40-01 One Raffles Place
Singapore 048616
info@primeusreit.com
+65 6951 8090
www.primeusreit.com
23

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Phillip Securities - Prime US REIT Corporate Presentation.pdf

  • 1. OPERATIONAL UPDATE | JULY 2021 Phillip Securities Prime US REIT Corporate Presentation 17 August 2023
  • 2. Important Notice This document may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses, governmental and public policy changes, and the continued availability of financing in the amounts and terms necessary to support future business. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. The value of units in Prime US REIT (the “Units”) and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager, DBS Trustee Limited (as trustee of Prime US REIT) or any of their affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Holders of Units (the “Unitholder”) have no right to request the Manager to redeem or purchase their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the “SGX-ST”). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. This document is not to be distributed or circulated outside of Singapore. Any failure to comply with this restriction may constitute a violation of United State securities laws or the laws of any other jurisdiction. The past performance of Prime US REIT is not necessarily indicative of its future performance. The information presented in this document as at and for the period ended 30 June 2023 is not audited or reviewed by the external auditors. 171 17th Street Atlanta, Georgia 2Q2023 | AUGUST 2023
  • 3. Content 171 17th Street Atlanta, Georgia Tower 909 Dallas, Texas One Town Centre Boca Raton, Florida 222 Main Salt Lake City, Utah Crosspoint Philadelphia, Pennsylvania 1H2023 Key Highlights 04 Financial Update 05 Portfolio Update 10 Current Market Environment 14 2Q2023 | AUGUST 2023 3
  • 4. 1H2023 Key Highlights ▪ Notable leasing discussions at several of PRIME’s assets ▪ Positive rental reversion of +9.5% in 2Q2023. In-place rents below asking rents by 6.7% ▪ Lease extension by No. 1 Top tenant Charter Communication (~94k sq ft, VCS1) in July 2023 ▪ WALE: 3.9 years ▪ Well-diversified portfolio with 14 assets across 13 primary markets ▪ Ability to fulfill TI and capex requirements; important to tenants ▪ Prominent employers continue to shift policies in favor of higher office- centric attendance – gaining traction in several markets ▪ According to JLL Research, office attendance rates trending 9% higher YoY in 2Q2023 ▪ U.S. office leasing volume rebounded by 11.6% in 2Q2023, following three consecutive quarters of decline ▪ Net absorption showed signs of an inflection point, with negative net absorption slowing 40% QoQ ▪ Deliveries volume continued to slow Strategic Footprint in Non-Gateway and Affordable Cities Well-Capitalised ✓ Debt headroom of US$232m ✓ Undrawn facilities of US$179m 2 U.S. Office Market^ ✓ Cyclical challenges persist ✓ Tentative green shoots emerging 3 1 ▪ Strong network of financing relationships, supported by well- established financial institutions ▪ Exercised extension options on US$400 million of debt from July 2023 to July 2024 ▪ Leverage of 42.8%, Debt headroom of US$232m; Buffer of c.15% from 2022 year-end valuations to 50% gearing threshold ▪ Interest coverage ratio at 3.4x ▪ Interest rate exposure well managed, 80% debt either fixed or hedged currently Notable Leasing Discussions ✓ Return-to-Office improved 2Q2023 | AUGUST 2023 ^ Source: JLL Research: U.S. Office Outlook Q2 2023 4
  • 5. US$‘000 1H2023 1H2022 Variance % Gross Revenue 79,467 81,804 (2.9) Net Property Income 47,167 50,820 (7.2) Income Available For Distribution to Unitholders 29,226 41,3271 (29.3) DPU (US cents) 2.46 3.521 (30.1) Annualised DPU Yield (%) 23.6 33.8 (30.2) 1H2023 DPU at US 2.46 cents 1H2023 Financial Update Note 1. For the 6 months ended June 2022, income available for distribution to Unitholders and DPU would have been US$38.0 million and 3.23 US cents respectively if the Manager had elected to receive 100% of its base fee in cash. 2. Based on annualised DPU against closing unit price of US$0.210 as at 30 June 2023. 2Q2023 | AUGUST 2023 1H2023 Distributable Income was US$12.1m (-29.3%) lower yoy mainly due to: ▪ -US$2.3m: Lower gross rental income due to lower occupancy during 1H2023 vs 1H2022, offset by higher parking and recoveries income ▪ -US$1.3m: Higher property operating expenses (Utilities, HVAC, security) largely due to increase in office physical occupancy ▪ -US$3.5m: Higher interest expenses on unswapped term loan and revolver balances ▪ -US$2.6m: Increase in Manager’s base fee settled in cash. (elected to receive 100% of its base fee in cash, vs 20% in 1H2022) 5
  • 6. Financial Position ▪ Overall debt and gearing levels continue to be managed prudently. ▪ 100% payout of distributable income US$ M 30 Jun 2023 Investment Properties 1,552.8 Total Assets 1,602.7 Borrowings 683.3 Total Liabilities 716.8 Net Assets Attributable to Unitholders 885.9 NAV per Unit (US$) 0.75 DPU for the period from 1 January to 30 June 2023 US 2.46 cents Ex-Date 16 August 2023 Record Date 17 August 2023 Payment Date 28 September 2023 2Q2023 | AUGUST 2023 6
  • 7. Debt Summary Aggregate Leverage 42.8% Undrawn & Available Facilities1 US$179.0m Gross Borrowings (drawn) US$685.6m Effective Interest Rate3 3.8% Debt Headroom to 50% US$231.6m Interest Coverage4 3.4x Weighted Average Maturity (Years)5 1.5 / 2.2 All-in Weighted Average Interest Rate2 3.9% 2H2022 & FY2022 RESULTS | FEBRUARY 2023 [1] US$66M of RCF drawn as at 30 Jun’23. 4 and 5-year term loan facilities of US$200M each, both fully drawn as at 30 Jun’23. 3-year term loan facilities obtained in 3Q2021 amounting to US$114.6M, fully drawn as at 30 Jun’23. [2] Based on interest expense (including amortisation of upfront debt-related transaction costs and commitment fees) on loans and borrowings for the 6 month period ended 30 Jun’23. [3] Based on interest expense (excluding amortisation of upfront debt-related transaction costs and commitment fees) on loans and borrowings outstanding as at 30 Jun’23. [4] Calculated as net income before tax expense, net finance expense, change in fair value of derivatives and amortisation of lease commissions, change in fair value of investment properties divided by finance expenses, including amortisation of upfront debt-related costs and commitment fees, for trailing 12-month period ended 30 Jun’23. [5] Fully extended debt maturity. Extension options to extend the 4-year term loan and Revolver maturities to July 2024 have been executed in July 2023. Options are available to the Borrower to extend maturities of the two 3-year term loan and Revolver facilities aggregating US$160m obtained in 3Q2021 from 2024 to 2026. As at 30 June 2023 ▪ Decrease in gearing due to decrease in borrowings as of June 30, 2023 compared to March 31, 2023, the latter was higher due to timing differences ▪ Interest cost increases in higher rate environment, buffered to a large extent by hedges on over 80% of total debt, also mitigating interest coverage ratio ▪ Liquidity and debt headroom high, but balance sheet will continued to be managed prudently given current gearing and high marginal cost of debt ▪ Extension of maturities of 4-year term loan and RCF facilities aggregating US$400m – from July 2023 to July 2024 ▪ No debt maturing till July 2024 2Q2023 | AUGUST 2023 7
  • 8. Summary of Credit Facilities Facilities 30 Jun 2023 Lender Tranches Facility Available (US$ m) Outstanding Principal (US$ m) Hedged/ Fixed Loan Maturity Main Credit Facility – Floating Syndicate led by Bank of America Term Loan 1 and 2 Total: 400 200 each Total: 400 200 each US$330m Hedged Till Jun-2026 TL1: Jul-2023 (Extended to 2024^) TL2: Jul-2024 US$70m: Unhedged Revolver 200 36 Unhedged Jul-2023 (Extended to 2024^) Total Main Credit Facility 600 436 Fixed (Secured) MetLife Fixed Rate Loan 105 105 Fixed Rate Aug-2029 Total Fixed MetLife Loan 105 105 One Town Center – Secured Floating Citizens Bank Term Loan 45 45 Hedged Till Jul-2024 Jul-2024 Two one-year extension options Fully extended maturity in Jul-2026 Revolver 20 20 Unhedged Sorrento Tower – Secured Floating Term Loan 70 70 Hedged Till Jul-2024 Revolver 25 10 Unhedged Total Citizens Loans 160 145 865 686 ^ following exercising of extension options in July 2023, extending maturity from July 2023 to July 2024 36 400 80 65 105 2023 2024 2025 2026 2027 2028 2029 ✓ US$330m (out of US$400m) benchmark rate hedged till Jun-2026 i.e. beyond the facility’s maturity in Jul-2024^ Debt Maturity Profile^ (US$m) ✓ US$115m (out of US$145m) hedged till Jul-2024 Unhedged Hedge Expiry & Fixed Loan Maturity (US$m) 36 70 330 105 10 70 20 45 2023 2024 2025 2026 2027 2028 2029 20% (136) 17% (115) 48% 15% ▪ Debt tranches aggregating US$400m with initial maturity of July 2023 extended to July 2024 ▪ Available liquidity of US$179m in undrawn credit lines ▪ Minimal fees for extension of Main Credit Facility and Citizens secured loans 2Q2023 | AUGUST 2023 8
  • 9. 445 65% 105 15% 136 20% ✓ High % Debt Hedged/Fixed Provides Protection in Current Rate Environment ✓ Benchmark Rate for US$330m out of the Main Facility’s Term Loan 1 & 2 (US$400m) Hedged Till June 2026, beyond fully extended maturity in July 2024^ Swap Expiry or Fixed Rate Loan Maturity Total Fixed or Hedged (US$ m) 2023 2024 2025 2026 2027 2028 2029 Fixed Rate (MetLife) Aug 2029 105 15% Interest Rate Swap Swapped from Floating to Fixed - Main Credit Facility Jun 2026 330 48% Interest Rate Swap Swapped from Floating to Fixed - OTC and ST1 Jul 2024 115 17% % Debt Hedged/ Fixed Tenor Hedged/ Fixed As at 30 June 2023 Interest Rate Management Total 550 80% Note 1: One Tower Center (“OTC”) and Sorrento Tower (“ST”) Floating Rate (Hedged) Fixed Rate Floating Rate (Unhedged) Debt Hedged or Fixed (As at 30 June 2023) 80% to Mid-2026 and Beyond to Mid-2024 and Beyond 63% 80% 63% (US$ m) 2Q2023 | AUGUST 2023 9 ^ following exercising of extension options in July 2023, extending maturity from July 2023 to July 2024
  • 10. 8.7% 13.2% 17.2% 6.0% 15.8% 36.5% 9.0% 13.5% 18.5% 6.8% 17.7% 33.4% 2023 2024 2025 2026 2027 2028 and Beyond By NLA By CRI Portfolio Updates Lease Expiry Profile (As at 30 June 2023)(a,b) [a] Annualized cash rental income based on the month of June 2023. [b] Excludes month to month leases accounting for 2.6% of NLA or 1.1% of annualized CRI. Stable Tenancy Profile with Well Staggered Expirations 3.9 years Weight Average Lease Expiry (WALE) 30 June 2023 2Q2023 | AUGUST 2023 [a] + 9.5% Positive Rental Reversion 2Q2022 ▪ Leasing volume: 66.8k sq ft 2Q2023, in addition to 64.4k sq ft in 1Q2023 ▪ 2Q2023 leases signed across diverse sectors - law firms, financial services, tech and corporate dealership ▪ YTD (as at 3 Aug 2023) leasing volume of 225.5k sq ft comprised ✓ 70% Renewals ✓ 27% New leases ✓ 3% Expansions ▪ Lease extension by No. 1 Top tenant Charter Communication (~94k sq ft, VCS1) in July => From Jul-24 to Oct-27 ('000 Sq ft) 1Q23 2Q23 3Q to-date YTD Renewal 26.9 37.8 94.3 159.0 New lease 37.5 23.0 - 60.5 Expansion - 6.0 - 6.0 Total 64.4 66.8 94.3 225.5 10
  • 11. Properties (As at 30 June 2023) Primary Market, State % Asset Value Occu pancy WALE (years) % Lease expiry remaining in 2023 by CRI[1] Annual In Place Rent (US$) Annual Asking Rent (US$) Potential Rental Reversion 222 Main Salt Lake City, Utah 13.4% 98.9% 3.8 0.0% $40.40 $39.50 -2.2% 171 17th Street Atlanta, Georgia 12.3% 80.5% 5.4 1.3% $29.60 $30.00 +1.4% Sorrento Towers San Diego, California 9.6% 96.2% 5.1 0.0% $42.39 $51.00 +20.3% Park Tower Sacramento, California 9.5% 74.3% 3.8 0.6% $34.02 $37.15 +9.2% Village Center Station II Denver, Colorado 9.2% 100.0% 5.0 0.0% N/A[3] N/A[3] N/A[3] Tower I at Emeryville San Francisco Bay Area, California 7.2% 69.1% 4.2 0.1% $43.68 $55.15 +26.3% CrossPoint Philadelphia, Pennsylvania 6.6% 97.1% 5.7 0.9% $38.77 $42.50 +9.6% One Town Center Boca Raton, Florida 5.9% 100.0% 4.5 0.0% $36.43 $40.00 +9.8% One Washingtonian Center Suburb Maryland, Washington D.C. 5.4% 83.3% 1.6 5.3% $36.92 $36.00 -2.5% Tower 909 Dallas, Texas 5.0% 84.0% 3.1 0.4% $34.19 $35.90 +5.0% 101 South Hanley St. Louis, Missouri 4.7% 94.8% 3.1 0.4% $29.51 $31.00 +5.0% Promenade I & II San Antonio, Texas 4.6% 85.9% 2.1 0.0% $28.94 $31.00 +7.1% Village Center Station I Denver, Colorado 4.6% 68.1% 1.3 0.0% $24.68 $26.00 +5.3% Reston Square Suburb Virginia, Washington D.C. 2.0% 46.1% 2.6 0.0% $40.53 $38.00 -6.2% Total / Weighted Average 100.0% 85.6% 3.9 9.0% $35.07 $37.41 +6.7% Positive reversion potential still in place [1] Lease expiry excludes month to month leases accounting for 1.1% of CRI [2] Excluding short term leases < 1year [3] Excludes Village Center Station II which is fully leased until 2028 ▪ Positive rental reversion2 demonstrated across multiple quarters, potential remains going forward ▪ Will be flexible on headline rent, focus on NER where lower capex deals available ▪ Upcoming lease expiries through 2023 well spread across portfolio reducing single asset exposure; the largest single asset lease expiry at One Washingtonian substantially from Sodexo expiry on 12/31 2Q2023 | AUGUST 2023 11
  • 12. Submarket Outlook 1. PRIME’s Portfolio Occupancy as at 30 June 2023 2. CoStar as of 11th July 2023 3. CoStar 4 & 5 Star National average occupancy rate as at 11th July 2023 State Metro Submarket PRIME’s Properties % Contribution by Carrying Value PRIME’s Occupancy Rate1 (%) Class A Submarket Occupancy Rate2 (%) Utah Salt Lake City, Downtown 222 Main 13.4% 98.9% 84.5% Georgia Atlanta, Midtown 171 17th Street 12.3% 80.5% 77.8% California San Diego, Sorrento Mesa Sorrento Towers 9.6% 96.2% 91.1% Sacramento, Downtown Park Tower 9.5% 74.3% 90.3% San Fran/Oakland Emeryville/Berkeley Tower I at Emeryville 7.2% 69.1% 79.8% Colorado Denver, Greenwood Village Village Center Station I & II 13.8% VCS I: 68.1% VCS II: 100.0% 76.0% Pennsylvania Philadelphia, Suburban Crosspoint 6.6% 97.1% 82.6% Florida Boca Raton One Town Center 5.9% 100.0% 85.7% Texas Dallas, Urban Center Tower 909 5.0% 84.0% 76.3% San Antonio, Far Northwest Promenade I & II 4.6% 85.9% 91.0% Missouri St. Louis, Clayton 101 South Hanley 4.7% 94.8% 81.8% Washington DC Washington DC (MD), Gaithersburg One Washingtonian Center 5.4% 83.3% 99.7% Washington DC (VA), Reston Reston Square 2.0% 46.1% 78.4% 100.0% 85.6% 81.6%3 ▪ Occupancy at 8 of PRIME’s 14 properties higher than submarket average ▪ Q-o-Q occupancy impacted by month-to-month leases coming off ▪ Two assets at 100% leased ▪ Strong leasing momentum at 222 Main, Sorrento Towers, Crosspoint, Tower 909, 101 S. Hanley and Promenade ▪ Significant leasing discussions underway at VCS I and Park Tower, albeit with relatively long lead times ▪ Encouraging signs of lease activity emerging at One Washingtonian and Tower 1 2Q2023 | AUGUST 2023 12
  • 13. 20.7% 14.3% 12.3% 11.2% 7.2% 6.9% 5.6% 3.4% 2.6% 15.8% 71% In Established + Growth (STEM/TAMI)2 Sectors Top 10 Tenants Finance Communications and Information Real Estate Services Others Medical, Biotech and Health Care Government Oil and Gas Accounting, Tax Preparation, Bookkeeping, and Payroll Services Accommodation and Food Services Legal Services Tenant Industry Credit Rating Property Leased sq ft % of Portfoli o CRI1 Charter Communications Communications and Information Moody's: Ba1 Village Center Station I & II 419,881 8.4% Goldman Sachs Group Inc. Finance Moody's: A2 S&P: BBB+ Fitch: A 222 Main 176,416 5.3% Sodexo Operations LLC Accommodation and Food Services S&P: BBB+ One Washingtonian Center 190,698 5.3% Dexcom Medical, Biotech & Health Care Independent Firm Credit Analysis: Strong Sorrento Towers 148,383 4.7% Holland & Hart Legal Services Private Firm 222 Main 89,960 3.2% Wells Fargo Bank NA Finance Moody's: AA2 Fitch: AA- S&P: A+ 171 17th Street 106,030 3.1% Arnall Golden Gregory LLP Legal Services Private Firm 171 17th Street 103,079 2.8% Bank of America, NA Finance Fitch: AA Moody's: Aa1 One Town Center 61,430 2.5% Matheson Tri-Gas Oil and Gas Private Firm Tower 909 93,942 2.2% Apache Corporation Oil and Gas Private Firm Promenade I & II 69,086 2.2% Total 1,458,905 39.7% WALE Top 10 3.8 Years [1] Data for Cash Rental Income as at 30 June 2023 [2] Established: Finance, Real Estate, Legal, Government STEM/TAMI: Communications, Health Care, Scientific R&D Services, Information, Professional, Scientific and Tech Services Sector Diversification Adds to Resiliency 2Q2023 | AUGUST 2023 13
  • 14. Current Market Environment 1. U.S. Bureau of Economic Analysis Advance Estimate Q2 2023 2. Bloomberg: Powell Says Fed Staff Is No Longer Forecasting a Recession (26 July 2023) 3. U.S. Bureau of Labor Statistics June 2023 4. U.S. Federal Open Market Committee: Press Release 5. JLL Research: U.S. Office Outlook Q2 2023 ▪ U.S. real GDP grew 2.4%1 year-on-year (YoY) in 2Q2023 ▪ According to U.S. Federal Reserve Chair Jerome Powell at the July 2023 FOMC meeting, the central bank no longer forecasts a U.S. recession2 ▪ U.S. labor market remains tight in June 2023, with low unemployment rate of 3.6% and labor participation holding constant3 ▪ Notwithstanding the moderating of inflation rate to 3.0% YoY in June 20233, the FOMC continued to tighten its monetary policy on 26 July 2023, raising the new target fed rate by another 25bps, to the 5.25% to 5.50% range4 ▪ Concerns of a significant financial crisis have alleviated compared to the end of 1Q, as bank failures have seemingly been contained to date and distress in the financial system is waning5 Real GDP Growth 2Q 20231 2.4% Unemployment2 Rate June 2023 3.6% Inflation Rate2 June 2023 3.0% year-on-year 2Q2023 | AUGUST 2023 14
  • 15. 1. JLL Research Office Outlook Q2 2023 ▪ Continued bifurcation across U.S. office markets. Tentative green shoots emerging with certain markets stronger than others. ▪ More than 60% of office vacancy concentrated in 10% of buildings ▪ Leasing momentum is tentatively improving. U.S. office leasing volume rebounded in 2Q2023, following three consecutive quarters of decline, with leasing activities growing 11.6% quarter-over-quarter (QoQ). ▪ RTO momentum continues. Office attendance rates trending 9% higher YoY. More companies shifted policies in favor of more office-centric attendance in 2Q202. ▪ Net absorption showed signs of an inflection point, with negative net absorption slowing 40% QoQ from 20 million sq ft in 1Q2023 to 12.5 million sq ft in 2Q2023. ▪ Asking rents nationally are continuing to grow, at 0.6% growth QoQ ▪ A slowing volume of deliveries, increased leasing activity, and accelerated demolitions and conversions of older vintage product are pointing to the increasing likelihood that U.S. office vacancy rates will peak over the near term, and begin to decline in 2024. U.S. Office Trends1 2Q2023 | AUGUST 2023 15
  • 16. ^ based on tour of assets in 2Q2023, includes direct feedback from leasing agents and direct large tenant engagement ▪ Anecdotal evidence that corporates are continuing to find ways to get people back to office – from encouraging to mandating, they have not given up on this effort ▪ Several significant tenants at PRIME assets in latest visits have mandated (at least hybrid) return to work – AGG (law firm, Atlanta), Goldman Sachs (financial services, 222 Main), Matheson (industrial gases, Tower 909) and Teleflex (medical tech, Crosspoint) ▪ While uneven across markets, there will be an inflection point where corporate decisions on RTO will influence others to follow suit ▪ Leasing activity is showing signs of recovery in several markets – however not consistently deep, and some leasing markets are recovering at a faster pace ▪ People bring back people – well-amenitized assets and activities at the assets are key – we are on the right track ▪ Two-way communication with tenants critical – what they need from landlords and what are delivering to them Observations on the ground in 2Q2023^ 16 2Q2023 | AUGUST 2023
  • 17. ▪ Overall physical occupancy levels as of August 4, 2023 – 58%. However, variations exist between markets. • 6 of PRIME’s assets are between 67% and 85% physically occupied, • 4 assets between 40% and 55%, and • 4 assets (in the East and West US) between 24% and 39% Observations and Asset Management Priorities ▪ Landlord initiatives being intensified at the asset level • Tenant and community activities – periodic and ongoing • Ongoing activation of common areas, accelerated decisions on select assets • Importance of upgraded and quality F&B at the assets – alternative options • Enhancement of communication infrastructure and protocols • ESG effort ongoing • Continued delivery of high-quality responsive Property and Asset Management 2Q2023 | AUGUST 2023 17
  • 18. Common areas at PRIME assets : Lounges, Outdoor Patios and Gym Tower One Emeryville Reston Square Sorrento Towers Crosspoint 2Q2023 | AUGUST 2023 18
  • 19. Common areas at PRIME assets : Lobbies Crosspoint 222 Main Tower 909 171 17th Street 2Q2023 | AUGUST 2023 19
  • 20. Food & Beverage Offerings 20 One Town Center 101 South Hanley Red Pine Chinese Restaurant & Lounge The Capital Grille Village Center Station 222 Main The Daily 2Q2023 | AUGUST 2023 Urban Market
  • 21. Tenant and Community Activities 2Q2023 | AUGUST 2023 Beekeeping Event @ Tower 909 Amenity Center Unveiling @ Reston Square Earth Day + Take Your Kids to Work @ One Washingtonian Center 21 Bike-to-Work Day @ Village Center Station
  • 22. Key Management Priorities Tower 909, Dallas, Texas Leasing Active Capital Management ▪ Leasing the key priority ▪ Monitoring bank debt markets and rate environment, focus on 2024 refinancing ESG Commitment ▪ Portfolio- wide initiatives: Gridium Energy Management, Energy Star/LEED recertifications and benchmarking, UL Air Quality Verification ▪ Property specific initiatives continue to be rolled out: Fitness Center upgrades, Wellness rooms, EV Charging stations, outdoor amenities, tenant and community engagement ▪ Implementation of onsite tenant communication solutions supported by LPC expertise ▪ Prudent use of capital to support building enhancements and amenitization, and leasing ▪ Flexibility on leasing structures ▪ Execution of asset enhancement initiatives ▪ Safe and healthy workplace ▪ ESG initiatives to help drive leasing 2Q2023 | AUGUST 2023 ▪ Continued evaluation of balance sheet and leverage, assessing potential deleveraging strategies 22
  • 23. Thank You 1 Raffles Place #40-01 One Raffles Place Singapore 048616 info@primeusreit.com +65 6951 8090 www.primeusreit.com 23