Prime US REIT - Phillip Securities 2023-05-15: Leasing Is The Top Priority

• Prime US REIT (SGX:OXMU)'s 1Q23 distributable income was below expectations and 21% of FY23e forecast.
• The decline of 28.8% to US$14.9mil was due to Prime US REIT increasing management fees paid in cash from 20% to 100%, higher interest expense, absence of lease termination income, and higher operating expenses. Excluding the higher proportion of management fees in cash, distributable income is still down 22.5%.
• - Read this at SGinvestors.io -
• Maintain BUY, DDM-based target price for Prime US REIT lowered from US$0.70 to US$0.46 as we lower our FY23e DPU forecast by 18% due to management fees paid all in cash, lower occupancy, and higher costs. We also cut FY24e and FY25e DPU forecast for Prime US REIT by 18% and 15% respectively.
• - Read this at SGinvestors.io -

The Positive

Extension of debt maturities.

• Read more at SGinvestors.io.

Above is an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.

Read also Phillip's most recent report:
2025-02-25 Prime US REIT - Unexpected Rise In Portfolio Valuations.

Previous report by Phillip:
2024-11-18 Prime US REIT - Improving Leasing Volumes.

Price targets by 3 other brokers at Prime US REIT Target Prices.

Listing of research reports at Prime US REIT Analyst Reports.

Relevant links:
Prime US REIT Share Price History,
Prime US REIT Announcements,
Prime US REIT Dividend Payout Dates & Corporate Actions,
Prime US REIT News