Distribution Reinvestment Plan
(a real estate investment trust constituted on 7 September 2018 under the laws of the Republic of Singapore)
Managed by KBS US Prime Property Management Pte. Ltd.
ESTABLISHMENT OF DISTRIBUTION REINVESTMENT PLAN
DBS Bank Ltd. was the sole financial adviser and issue manager for the initial public offering of Prime US REIT.
KBS US Prime Property Management Pte. Ltd., as manager of Prime US REIT (the “Manager”), is pleased to announce the establishment of a distribution reinvestment plan (“DRP”), pursuant to which unitholders of Prime US REIT (“Unitholders”) may elect to receive new units in Prime US REIT (“Units”) in respect of all or, at the discretion of the Manager, part only of the cash amount of any distribution to which the DRP applies. The statement containing the terms and conditions of the DRP (the “Distribution Reinvestment Plan Statement”) is attached in the Appendix.
The DRP may be applied from time to time to any distribution declared by Prime US REIT as the Manager may determine in its absolute discretion. Participation in the DRP is optional and Unitholders may elect to participate in respect of part or all of their unitholdings. Unless the Manager has determined that the DRP will apply to any particular distribution, the distribution concerned will be paid in cash to Unitholders in the usual manner.
In connection with the allotment and issue of new Units under the DRP, applications will be made to Singapore Exchange Securities Trading Limited (the “SGX-ST”) for the listing and quotation of the new Units on the Main Board of the SGX-ST at the relevant time. The DRP may, at the discretion of the Manager, not be offered to Overseas Unitholders (as defined in the Distribution Reinvestment Plan Statement).
The DRP provides Unitholders with an opportunity to elect to receive distributions in the form of fully-paid new Units, instead of cash. This will enable Unitholders to increase their unitholdings in Prime US REIT without incurring brokerage fees, stamp duties (if any) and other related costs. The issue of new Units in lieu of cash distributions under the DRP will also strengthen Prime US REIT balance sheet, enhance its working capital reserves and improve the liquidity of the Units.
The Manager will make an announcement whenever it decides to apply the DRP to a particular distribution, and such announcement will contain, among others, (a) the procedures, timeline and other relevant details in relation to the application of the DRP to such distribution and (b) details on whether Prime US REIT is relying on a general mandate or specific Unitholders’ approval for the issue of new Units under the DRP.
By Order of the Board
Chief Executive Officer
KBS US Prime Property Management Pte. Ltd.
(Company registration no. 201825461R) (as manager of Prime US REIT)
21 June 2021
This announcement is for information purposes only and does not constitute or form part of an offer, invitation or solicitation of any offer to purchase or subscribe for any securities of Prime US REIT in Singapore or any other jurisdiction nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.
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 (“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 (“SGX-ST”). Listing of the Units on SGX-ST does not guarantee a liquid market for the Units.
This announcement 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.