PrimeTime Properties is accelerating its debt reduction strategy, with its loan-to-value (LTV) ratio expected to fall to between 39% and 42%, from 43% in February 2026.
The BSE-listed property group expects to retire a significant portion of its debt using retained distributable income and proceeds from property disposals totalling about P98.4 million gross.
The company’s board also does not expect to declare a distribution for the financial year ended August 31, 2026. Instead, the cash will be channelled towards reducing borrowings as interest costs remain high.
PrimeTime chairman Paul Masie said the decision prioritises balance sheet strength and long-term value for unitholders. He said reducing debt at current borrowing costs would provide an immediate financial benefit by lowering future interest expenses and refinancing risks.
PrimeTime has made significant progress in reducing its gearing, with LTV falling from a peak of about 59% in February 2022 to 43% in February 2026. For the six months ended February 2026, revenue increased by 4% to P122.1 million, while portfolio vacancy stood at 2%.
The group’s weighted average cost of debt had risen to 9.2% by February 2026, from 7.9% in August 2025, while finance costs increased 9% to P38.8 million. PrimeTime said reducing higher-cost borrowings would help strengthen its financial position and support future distributions.
The company said distribution capacity would continue to be assessed based on gearing, funding conditions, liquidity needs and operating cash generation.
