Prime US REIT 1Q23 - UOB Kay Hian 2023-05-19: Resiliency From Diversified Tenant Mix; Bombed-Out Valuations

Prime US REIT 1Q23 - Resiliency From Diversified Tenant Mix; Bombed-Out Valuations

Prime US REIT (SGX:OXMU) | SGinvestors.ioPrime US REIT (SGX:OXMU)
  • 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.
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  • 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.
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Incurred negative rental reversion.

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Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @

Jonathan KOH CFA UOB Kay Hian Research | 2023-05-19

Read also UOB's most recent report:
2023-08-11 Prime US REIT 1H23 - Closing In On Several Leasing Discussions.

Price targets by 2 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


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