Prime US REIT ("Prime") has amazingly announced a better than expected results. I was expecting it to have breached its banking covenants after valuation decline. However, its aggregate leverage ratio is still within 50% and that it is giving out bonus units and 10% of its distributable income as dividends while retaining the rest for CAPEX and refinancing. Not surprisingly, its languishing unit price rebounded sharply on 22 February 2024. There are a few very interesting announcements by the management of Prime that is worth highlighting and which gives some idea on whether things are starting to turn around for US office commercial sector.

Prime plan to pay down US$100Mil of debt in 2024. It is also already in constructive refinancing discussions with the lenders of its US$600Mil credit facilities