- 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 the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Darren Chan Phillip Securities Research | https://www.stocksbnb.com/ 2023-05-15
Read also Phillip's most recent report:
2024-02-26 Prime US REIT - No Breach, But Refinancing Risks Persist.
Previous report by Phillip:
2023-11-09 Prime US REIT - Challenges Remain, But Manageable.
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 Dividends & Corporate Actions,
Prime US REIT News Articles
