- 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.
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 @ https://www.utrade.com.sg/.
Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 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
