- We factor in potential valuation losses and the cost to reduce gearing to correctly appraise the valuation for Prime US REIT. We estimate fair value of investment properties to drop 10% and aggregate leverage to hit 48% at end-23.
- - Read this at SGinvestors.io -
- Valuation is attractive with Prime US REIT's 2024 distribution yield at 17.4% and P/NAV at 0.44x. Maintain BUY. Target price: US$0.61.
Prime US REIT provided key business & operational updates for 1Q23.
New policy reduces dilution for unitholders.
- Prime US REIT (SGX:OXMU)'s gross revenue eased 1.7% y-o-y in 1Q23. NPI dropped 7.2% y-o-y due to higher property expenses to prepare for more employees returning to work at their offices. Finance expense increased by US$1.7m y-o-y. There was absence of amortised lease termination income of US$1.3m recorded in 1Q22.
- - Read this at SGinvestors.io -
Incurred negative rental reversion.
- Read more at SGinvestors.io.
